14 October 2005 - 7.00 (BST)

Trading Update - Kewill Announces Continued Growth in Profitability

The Board of Kewill Systems plc (LSE: KWL) (“Kewill” or “the Group”), the provider of supply chain control software and solutions, today issues the following update on trading for the half year ended 30 September 2005, in advance of its Interim Results due to be announced on 15 November 2005:

“We are pleased to announce that our first half results are expected to be in line with management expectations that Kewill would deliver improved overall revenue and significantly improved profit on the same period last year and are on track to meet market expectations for the full year.

The international trade management business has continued to perform strongly and win significant contracts, including one with A.N. Deringer in July this year. Our shipping management business has won 12 large enterprise level shipping contracts, up from 10 in H1 last year, this has largely made up for reduced revenues in the more competitive low end of the market. Furthermore, we believe that the partnership with SAP announced last month will provide an enhanced channel to ensure Kewill’s continued dominance in the SME market. The order management and visibility business continues to experience slow sales in the UK retail sector and has lost revenue as a result of the closure of the Allders, Littlewoods and Index businesses. However, the acquisition of Perwill has ensured growth over the same period last year and this, along with the partnership with Inovis announced in May, gives us new growth opportunities for the second half of the year.

The net cash balance of £18.9 million at 30 September 2005 gives us scope to add to our growth through selective acquisitions.”

For further information please contact:

Kewill Systems plc
Tel: 01784 410 054
Paul Nichols, Chief Executive
Guy Millward, Group Finance Director

Financial Dynamics
Tel: 020 7831 3113
Edward Bridges / Juliet Clarke / Hannah Sloane