Interim Management Statement

26 July 2012

Findel plc (the "Group")

AGM Trading Statement and Interim Management Statement

At the Annual General Meeting to be held at 11.00am today David Sugden, Chairman, will read out the following Interim Management Statement which covers the 16 week period from 31 March 2012 to 25 July 2012.

Group Performance

The Group has made a good start to the year with an encouraging trading performance. The trends set out at the time of the annual results (announced 12 June 2012) have largely continued with Group sales during the period 8.0% ahead of the prior year.

The largest business in the Group, our Home Shopping business Express Gifts, has continued to see a strong sales performance from its enhanced value proposition. As discussed at the time of the annual results, sales in the period continue to be significantly ahead of the prior year, with a lower gross margin percentage but increased total cash margin. Comparators will become more challenging in light of the strong prior year period as the year progresses. However, ahead of Express Gifts' peak sales period in the lead up to Christmas, customer numbers continue to grow. Bad debt rates remain stable and the systems investments announced in the Full Potential Review are on track and within budget.

A combination of holiday periods and poor weather has led to a modest decrease in Kleeneze sales versus the prior year. In recent weeks distributor recruitment has increased and new sales initiatives are progressing well.

Kitbag has now recovered to have comparable year-on-year sales with growth in cash margin in the period, and has experienced further success in winning new contracts by being awarded the mandate to manage the online retail operations for the French Open Tennis Championship at Roland Garros, to take effect from March 2013.

The turnaround in our Education Supplies business continues to progress well. Our schools-focussed brands have shown strong growth during the period. Our curricular and specialist brands have seen continuing improvement in sales trajectory since the launch of new catalogues in late April, with performance of these brands since launch matching the prior year after a number of years of substantial decline.

Our Healthcare business has continued to see good growth versus the prior year during the period and continues to be well placed for future contract wins.

Outlook

We are encouraged by trading in the first 16 weeks of the year, which suggests that our turnaround programme is gaining traction. Whilst the peak sales periods for the group are still to come and we remain cautious of the continuing pressures on consumer and government spending, we expect the current positive trading trends to continue.

Enquiries

Findel plc Roger Siddle / Tim Kowalski0161 303 3465

Tulchan Communications LLPStephen Malthouse / Susanna Voyle / Michelle Clarke020 7353 4200