Year End Update

6 April 2016

UK Mail Group plc

YEAR END UPDATE

UK Mail Group plc (the "Group") today issues the following update for the financial year ended 31 March 2016.

Reported Group revenues for the year are expected to show a 1% decrease for the financial year. Profit before tax (before one off exceptional items) for the year is anticipated to be in line with management expectations.

Overall revenue growth has been impacted by a continued mix effect in our Mail business which is expected to result in a revenue decline for the year of some 3%, despite Mail volumes for the year being up some 5% on the previous year.

Our Parcels business is expected to achieve volume growth for the year of some 4%. Volume growth in the fourth quarter has suffered in comparison to last year due to the spike in volumes in the comparative period as a result of the demise of City Link.

Service levels in both our Parcels and Mail businesses remain at high levels. Our new automated hub continues to operate well and to achieve good throughput levels. We are making further progress with our plans to improve the efficiency of our network in markets that remain highly competitive.

The Group remains in a sound financial position.

As previously announced, Peter Fuller joined the Group as Operations Director on 5 April 2016 and will join the Board on 17 May 2016.

UK Mail Group will report its final results for the year ended 31 March 2016 on 24 May 2016.

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Notes to editors:

About UK Mail Group plc

UK Mail Group plc is one of the leading independent parcels, mail and logistics services company within the UK and one of the main alternatives to Royal Mail for business mail requirements.

Forward-looking statements

This announcement contains certain forward looking statements with respect to the financial condition, results of operations and businesses of UK Mail Group plc. These statements involve risk and uncertainty because they relate to events and depend upon circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements. Nothing in this announcement should be construed as a profit forecast.

The information in this announcement is based on unaudited management accounts and is before any exceptional items.