DEAR SHAREHOLDERS,

	"If I look beyond these figures, then what pleases me most about last year was the opportunity it gave the group to demonstrate its character."

I'm once again delighted and privileged to report another strong performance from the Text 100 Group, with turnover up 42% to £22.8 million, pre-tax profit up 26% to £1.7 million, basic earnings per share up 9% to 4.5p and the dividend per share up 14% to 1.6p.

This is an impressive set of figures from a Group which has once again invested heavily in increasing its international coverage - with new Text 100 subsidiaries in Japan and Singapore, as well as further independently branded national subsidiaries in the UK and Germany.

It's a mark of the Group's strength that, at the pre-tax profit level, these investments were more than offset by strong performances from existing operations, assisted by some quite formidable results from the USA (turnover up 94%) and Germany (turnover up 47%). Our investments in Japan and Singapore produced first-year losses which cannot yet be offset for tax purposes and therefore held back our EPS growth this year. However progress is being made in both areas.

The UK's independently branded subsidiaries also performed well, with Bite's turnover up 48% and Joe Public Relations reporting a maiden turnover figure in excess of £1 million and a healthy profit before tax.

The work involved in preparing the Group for Listing is now well advanced, and in the absence of unforeseen circumstances, we anticipate first dealings sometime in early December. The Board is confident that admission to the LSE's Official List will provide a strong platform for future growth - in terms of greater international marketability for the Group, liquidity for the stock, and of course, access to international capital markets.

However, I'd like to record the Board's enthusiastic appreciation of the service the Group has received from OFEX over the past two and a half years. The enormous benefits of a trading facility and the internally imposed disciplines that having an OFEX quote instils in management are perhaps still not adequately understood among private companies - even when the free float is no more than 4% or 5%.

One of the most significant aspects of the pre-flotation work has been the recruitment of further non-executive directors. I reported on the appointment of Ian Taylor, MBE, MP in last year's annual report, and this time I'm pleased to report the appointment in July of Mr John Rasor, a US citizen and former head of worldwide public relations at Xerox Corporation. John's experience of PR at a global level will be immensely valuable to the Group.

In August 1998 Text 100 Group plc became a holding company and now has three international brands - Text 100, AUGUST.ONE COMMUNICATIONS and Bite - as well as a range of smaller brands which still operate at a purely national level - such as Joe Public Relations and EVUS. The Group will continue to invest significantly at two levels. Firstly, in driving its international brands into more of the world's major technology markets. Secondly, it will continue to establish new national brands and, when appropriate, will also assist these to commence international operations.

The Group has made a good start to the new financial year, with some quite significant new business wins coming in the first three months. The Board remains very confident that the Group will continue its successful growth path for the foreseeable future.

Tom Lewis
Chairman