This page Highlights John Leighfield, Chairman, comments Press Releases Enquiries FY97 pages FY 97 Highlights Chairman's Statement Consolidated Profit and Loss Account Consolidated Balance Sheet Consolidated Cash Flow Statement Notes to the Financial Statements RM Home

Results for the Year Ended 30 September 1997 Monday, 24 November 1997 RM plc ("RM"), the UK’s leading supplier of IT software, services and systems to education, announces results for the year ended 30 September, 1997. Highlights John Leighfield, Chairman, comments Press Releases Enquiries Highlights: Turnover up 11% to £110.2 million (1996: £99.0 million) Operating profit up 14% to £7.3 million (1996: £6.4 million) Profit before tax up 18% to £8.0 million (1996: £6.8 million) Earnings per share up 23% to 30.8p (1996: 25.1p) Appointment of Richard Girling as Group Chief Executive in succession to Mike Fischer, who becomes President of RM plc and a Non-Executive Director Commenting today, John Leighfield, Chairman, said: "We are pleased to announce that RM achieved good results for the year against a background of challenging market conditions. "As is usual at this time, it is too early to give an indication of the outcome for the current year. However, it is already clear that the pronounced seasonal pattern of the Group’s business, with the majority of profits earned in the second half, will be even more marked than usual. "The new Government has been very supportive of increasing the use of IT and communications services in education. The most significant policy proposal is the National Grid for Learning and the Government has committed £100 million of public funding to build it. RM welcomes this development with enthusiasm. In order to take advantage of this funding, and to counter any increase in competitive activity, the Board has approved additional expenditure on product development and sales and marketing. "The additional public funding will not be available until the second half of RM’s financial year, whilst RM’s additional expenditure on product development and sales and marketing will impact the first half. In addition, the nature of this funding is such that some customers will choose to defer expenditure whilst they revise their IT plans. The combination of these factors will result in significantly lower first half profits than last year. Nonetheless, recent developments herald the largest increase in market size RM has ever experienced, and the Board is confident that the Group is well placed to benefit over the full year and in future years. "On behalf of the Board, I would like to thank Mike Fischer, as the founder of RM and its Chief Executive for 24 years, for the inestimable contribution he has made to the Group’s development. The Board - and I am sure, all those in the UK who are planning the effective use of IT in education - look forward to benefiting from the strategic contributions he will continue to make to this vital topic as President and a Director of RM for years to come." Enquiries to: Richard Girling Chief Executive, RM plc 01235 826 000 Mike Greig Finance Director, RM plc 01235 826 000 Andrew Fenwick Brunswick 0171 404 5959 Philippa Power Brunswick 0171 404 5959 Press Releases Chairman's Statement Consolidated Profit and Loss Account Consolidated Balance Sheet Consolidated Cash Flow Statement Notes to the Financial Statements Copies of the Annual Report and Accounts may be obtained after the posting date from the registered office of the Company at: New Mill House, 183 Milton Park Abingdon, Oxfordshire, OX14 4SE

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