Strategy and Trading Update

InterX PLC 29 November 1999 InterX plc ('InterX' or the 'Company') Strategy and Trading Update InterX's Strategic Repositioning The Chairman's Statement in the Annual Report and Accounts for the year ended 30 July 1999 highlighted that the Board of InterX plc ('InterX' or the 'Group') was actively reviewing the financial implications for InterX of exploiting the opportunities available to the Group through its internet businesses, IT Network Limited ('IT Network') and Cromwell Media Limited ('Cromwell'). The Board now believes that it is in the best interests of shareholders to focus on the ongoing development of these and other internet businesses. To accomplish this, the Board is currently taking steps to separate the distribution business, Ideal Hardware plc ('Ideal'), formally from the Group and is considering a number of suitable platforms from which Ideal can pursue the significant opportunities currently available to it. The Board expects this separation to be completed within the next six months. Internet Activities IT Network (www.itnetwork.com) is an online product information service for IT professionals. The business continues to attract new sponsors and registrations and has clearly demonstrated that with sufficient investment and increased marketing expenditure, the current lack of which is restricting sales, it can become a significant asset to shareholders. In order to maximise the opportunities available to IT Network, including moving into other geographical markets and developing an e-commerce capability, significant investment will be required over the next two years. Cromwell (www.cromwellmedia.co.uk), an internet software company of which InterX owns 34%, is finalising its plans to market its software in competition to the offerings of BroadVision, Inc. and Vignette Corporation. Cromwell's technology currently powers www.itnetwork.com and www.silicon.com. Silicon.com is the online IT news publisher which was recently the subject of an £11m investment from a European venture capital syndicate led by Amadeus Capital Partners and including Schroder Ventures, Dresdner Kleinwort Benson, Gilde and T-Venture. Distribution Activities Ideal's (www.ideal.co.uk) current trading is showing strong growth both in turnover and market share and the company is achieving its budgeted targets despite the continued adverse market conditions which are impacting both margin and cash flow throughout the industry. The Board is also pleased to announce that on 23 November 1999, Ideal received the 'Storage Distributor of the Year' award at the 1999 Computer Reseller News Channel Awards. This is the eighth consecutive year that Ideal has received an award at this prestigious event. Given Ideal's leading market position in the UK, the company expects to take an active role in the consolidation of the UK and European IT distribution sectors. The Board believes this will take place in the short to medium term, through both organic growth and acquisition. Accordingly, Ideal requires a suitable platform from which it can pursue these significant opportunities. Trading Update Until such time as the separation of InterX's distribution and internet activities is complete, the significant investment in and marketing expenditure on IT Network's activities will be funded out of profits generated by Ideal. This expenditure will absorb all of the Group's profits during this period. The Board believes that the level of expenditure required to realise the substantial opportunities available to InterX's internet businesses is such that it will not be appropriate for the Group to pay dividends in the short to medium term. InterX plc will be holding a presentation to analysts today at 12 noon at the offices of College Hill Associates, 5th Floor, 78 Cannon Street, London, EC4. 29 November 1999 Enquiries: InterX 020 8410 7200 James Wickes, Chief Executive Email: jwickes@interx.co.uk Simon Barker, Commercial Director Email: sbarker@interx.co.uk Simon Miesegaes, Finance Director Email: smiesegaes@interx.co.uk College Hill 020 7457 2020 Nicola Weiner Email: nicola@collegehill.co.uk Chelsea Allen Email: chelsea@collegehill.co.uk