FEDERAL INTERNATIONAL (2000) LTD

LOWER PROFITS FOR FINANCIAL YEAR 2000



The Board of Directors of Federal International (2000) Ltd ('the Company') would like to announce that following a review of the Company's performance for the year ended 31 December 2000, the Company would not be able to meet the forecast in respect of turnover and profit before tax and after tax provided in the forecast in the Prospectus dated 29 August 2000.

Turnover and profit were not in line with forecast due to unforeseen delays in the commencement and implementation of certain projects and lower than anticipated sales margins, which were beyond the control of management.

However, as stated in the 6-month results announcement of results on 26 September 2000, the Directors expect the Group to remain profitable for the year ended 31 December 2000.