Interim results for the six-month period - the hotgroup

The financial statements within this set of preliminary results cover the six month period to 30 June 2005.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

Record levels of operating profit (before goodwill amortisation and exceptional items) from the online division, increasing to 786,000 from 375,000 for the six month period to 30 June 2004, representing sharp growth of 110%

-Gross profit increased steeply by 40% to 9.643m (6.888m for the six months to June 2004)

-Turnover up significantly by 34.7% to 23.725m (17.616m for the six months to 30 June 2004)

-Group operating loss is 5.535m for the 6 months to 30 June 2005 (6 months to 30 June 2004: loss of 3.559m)

-Ninth successive quarter of strong online operating profit performance

the hotgroup has built a significant online network with 2.23m registered users, in excess of 1 million searchable candidate CVís and advertises 30,000 to 40,000 jobs

All 2004 acquisitions substantially integrated and online brands repositioned

Acquisition of Profiles Resource Management Ltd (ìPRMî) in the new business area of human resources managed services completed subsequent to the end of this period

Commenting on the results, Tony Reeves, Chairman and CEO of the hotgroup, said,

ìThese interim results demonstrate the hotgroupís strong growth in turnover, largely from our online operations and acquisitions completed last year. With all the hotgroupís acquisitions now substantially integrated we expect this trend to continue. We have continued to pursue our strategy of online and traditional recruitment and have moved into a new key area of recruitment services with the acquisition of Profiles Resource Management Ltd.

ìConsolidation remains a key feature of the recruitment industry, particularly the online sector. The hotgroup announced on 1 September 2005 that it has agreed to terms for an offer for the entire issued share capital from Trinity Mirror plc. This approach, from one of the UKís leading media organisations, demonstrates the culmination of achievements of everyone at the hotgroup. Shareholders are offered the opportunity of realising their investments for cash at a significant premium to the levels seen prior to the approach and we expect that the Company will now benefit from the enhanced financial strength of Trinity Mirror and from their drive and vision for bringing new technology and media solutions to the recruitment industry. This development for the hotgroup supports our belief that the internet has fundamentally transformed the way UK companies recruit and job seekers look for work. This is an exciting time to be in recruitment.î