RNS Number:0763M
Trafficmaster PLC
09 June 2003

9 June 2003



                         TRADING UPDATE AHEAD OF AGM



In advance of the AGM on 10th June 2003, David Martell, Chief Executive of
Trafficmaster Plc, provides the following update on current trading.



Management continues to focus on areas of the market that offer the greatest
growth opportunities.  Our business now consists of four areas of revenue
generation: the provision of traffic flow data; Smartnav, our intelligent
navigation system; RAC Trackstar, our stolen vehicle tracking business; and
Teletrac our US business.



As detailed in our preliminary results, the traffic flow data markets in the UK,
mainland Europe, and the USA have not developed in the way that most industry
forecasters projected.  Across the industry revenues for traffic data in the UK
have been flat for some three years and this picture is reflected across
telematics players in other countries such as Germany, Italy, France and the
USA.  Nonetheless, we expect to maintain and strengthen our position as the
dominant revenue generator in the UK traffic market and to develop profitable
opportunities when they arise.



The company's strategic focus is increasingly on providing an integrated
solution providing its traffic flow data with intelligent satellite navigation.
I am pleased to confirm that Smartnav, the advanced navigation service developed
in partnership with Motorola, continues to make good progress.  Smartnav
revenues are growing strongly and have increased on a month by month basis by
around 14% each month to date this year.  Last month Smartnav won the Auto
Express Accessory of the Year Award and we are starting to gain acceptance with
motor manufacturers for integration with accessory programmes.  A deal with
Peugeot was announced on 19th May, following the previous announcement by
Hyundai.  We expect to make further announcements during the current financial
year.  However, whilst being significant endorsements of the product, one has to
recognise that such relationships do not necessarily convert into high volume
standard equipment sales in the short term.    Whilst acknowledging it is still
early days, the Directors firmly believe that the quality product that has been
produced in Smartnav, combining traffic data with affordable navigation, will be
a significant success.



RAC Trackstar maintains its position as market leader in GPS/GSM stolen vehicle
tracking in the UK.  Hardware sales and subscription revenues are growing
strongly this year and a new product will be launched in the fourth quarter
offering additional features.



Teletrac, our USA subsidiary, is operating in a cash neutral state and
generating an operating profit following firm management action to reduce costs.
Sales levels remain flat, with difficult trading conditions in the USA.  The
RadioCamera technology that was purchased by Trafficmaster and Motorola in 2001
has been developed to a state ready for market, but has been held back until
commercial opportunities develop.



Management is focussed on developing sustainable results and in the current year
performance has been encouraging with sales revenue ahead of budget
expectations.  A tight control on costs continues to be maintained.



In uncertain market conditions for telematics as a whole, Trafficmaster is
successfully concentrating on areas of the marketplace that are expanding.  This
management focus is now starting to provide results, and whilst shareholders
should not expect instant results, we believe the prospects for the Group are
encouraging for the future.



                                     -ends-



For further information please contact:

Trafficmaster
David Martell, Chief Executive                  Tel: 01234 759 300
Nigel Bond, Finance Director



Financial Dynamics
Ben Atwell                                      Tel: 020 7831 3113






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