ABOUT ILX

ILX Group plc ('ILX Group'), the AIM quoted vocational education and training company, today made the following statement about the year to 31 March 2006 which has just ended and the decision to adopt IFRS for that year.

"We are pleased to report that trading in the fourth quarter was broadly in line with expectations. Turnover for the year, whilst marginally behind our expectations, will reach £6.9 million, an increase of 77% on the previous year (2005: £3.9 million). Operating profit, under IFRS which will be adopted for the first time, will come in at approximately £1.1 million (2005: £0.8 million) before charges relating to share options of £0.1 million (2005: £0.05 million). The Company's Preliminary Results for the year ended 31 March 2006 will be announced on 26 June 2006.

The Company has seen significant growth from its core markets, particularly PRINCE2 and ITIL, with sales of computer-based-training (CBT) products in this area exceeding our expectations at over 30% up on last year. CBT sales in the last quarter totalled over £900,000 and included major new customers Barclays, Logica CMG, and Vodafone.

Considerable investment in new CBT products has taken place, particularly in the second half of the year, including a blended training product in "Managing Successful Programmes" which has now gone on sale and other products which will be brought to market over the next few months.

Classroom training, again in PRINCE2 and ITIL, increased more than 100% on the previous year. Whilst this is extremely encouraging, the speed of the expansion has led to some erosion of gross margins from this part of the business. This has now been addressed through the hire of key personnel who have a track record of delivering large volumes of training events. Significant customers in the last quarter included clients such as Cheshire County Council, ComputaCenter, the Home Office, Legal and General, and National School of Government.

The two acquisitions acquired in the year have also bedded down well. Mount Lane, acquired in November 2005, has secured major deals with AWE, British American Tobacco, and a major bank for their flagship offering the Performance Support Tool. Customer Projects, acquired in February, has recently secured an extended deal with the Pension Protection Fund, the bulk of which will be delivered in financial year 2006/7.

We remain optimistic about the future prospects for the Company and the board is confident that the company is on track to meet market expectations for 2007."

Re. Adoption of International Financial Reporting Standards.

A full reconciliation between figures under UK GAAP and IFRS will be provided at the time of the preliminary announcement. The key differences are:

Under IFRS, a charge must be made for the value of share options provided to staff; a charge will therefore be made in both years ended 31 March 2005 and 2006, as discussed above.
Under IFRS, goodwill is subject to annual impairment review rather than regular amortisation. Accordingly, no goodwill charge is expected for either of the years ended 31 March 2005 and 2006. In 2005 the goodwill charge was £0.29 million.
Under IFRS, product development expenditure must be capitalised where it relates to commercially viable projects. (2005: £0.2 million). Previously, under UK GAAP, companies had the option to expense or capitalise. Capitalised developments are then subject to annual impairment reviews.

For further information, please contact:

ILX Group plc
Ken Scott
Tel: 020 7371 4444

Binns & Co PR Ltd
Paul McManus
Tel: 020 7153 1485
Mob: 07980 541 893

Charles Stanley & Co Ltd
Philip Davies
Tel: 020 7739 8200

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