RNS Number:4757K
Vega Group PLC
29 April 2003


For Immediate Release                                              29 April 2003




                                   VEGA Group PLC



         Pre Closed Period Update and Eurofighter Contract Announcement



VEGA Group PLC announces that trading in the second half of the year to 30 April
2003 has been broadly in line with market expectations.  Full year profit before
tax and exceptional items is anticipated to be significantly ahead of last year,
and broadly in line with expectations, with order intake and revenue marginally
ahead of expectations.  Operating cashflow generation has been very strong and
net debt levels at the end of the period will be better than market
expectations.



The Government and Defence business has seen a strong second half of the year
with good operating performance.  We are pleased to announce that we have
received a #2.5m extension to the contract to provide training systems for the
Eurofighter aircraft.  This anticipated extension is to procure and install
training equipment for RAF classrooms and will be delivered over the rest of
this calendar year.  It takes the total value of VEGA's Eurofighter contracts to
over #9m.



In the Space business second half profitability has been impacted by the
requirement to take a #0.3m provision against future costs on a fixed price
project.  New order intake has been very strong and we have achieved a number of
significant contract wins in the period, particularly in Germany.



The Group has continued to identify cost efficiency initiatives and as a result
we will be taking a #0.9m one-off exceptional charge in the second half of the
year relating to headcount reduction actions and vacant property provisions.
These actions are expected to deliver annualised cost benefits of around #1m.



Commenting on the year, Phil Cartmell, Chief Executive said: "I am encouraged
with our performance which is in line with our strategy to return VEGA to
profitability, consolidate our market offering and position the business for
further progress next year."



The results for the twelve months to 30 April 2003 are expected to be announced
on 2 July 2003.



For further information:

VEGA Group PLC :             Phil Cartmell - Chief Executive     01707- 391 999
www.vega.co.uk               Richard Amos - Finance Director

Buchanan Communications:     Nicola Cronk                         020-7466 5000
www.buchanan.uk.com          Tim Thompson




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