Trading update

1 September 2010

TRADING UPDATE

2ergo Group plc (AIM:RGO) ("2ergo" or the "Group"), a leading provider of mobile enabling technology, is pleased to announce its pre-close trading statement in advance of announcing its preliminary results for the year ended 31 August 2010.

Trading has been in line with management's expectations and the board anticipates strong returns on the investment made in 2ergo's business in the coming financial year.

New client wins

The strength of the Group's offering to clients has been evidenced by important client wins in the period, most notably Transport for London, ESPN, Aviva, Burberry, Fidelity, Times of India, Cricket Australia, Universal UClick and Carphone Warehouse.

Operations

As previously announced, the Group has invested in its acquisitions and in expanding the operational scale of the business, creating an increased overhead spend for the year. As reported in the Group's interim statement, the scale of this overhead increase will be significantly less than the £7.1m initially forecast for the year.

This saving has allowed the Group to bring forward its programme of technical and infrastructure investment, developed in partnership with Capgemini, ahead of schedule. This has allowed significant progress to be made in integrating the businesses which were acquired in the previous financial year.

With an enlarged sales and marketing staff in offices now in the UK, the US, India, Latin America and Australia the Group is leveraging cross selling opportunities across both its geographical regions and its product sets, and is well positioned in all territories to take advantage of the adoption of mobile technology by businesses globally.

Pipeline

The quality of the Group's order book and pipeline has continued to grow across all territories since its interim statement and the Board remains confident of continued success over the coming years.

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