Trading/Acquisition Update

Released : 30/07/2007 07:01

Rotala PLC
30 July 2007

                                   Rotala plc
                          ('Rotala' or the 'Company')

                         Trading and Acquisition Update

Trading Update

The Board is pleased to announce that in recent weeks the main operating
subsidiaries of the Company (together the 'Group'), Flights Hallmark Limited and
Central Connect Limited, have been awarded a total of ten new contracts.  On an
annualised basis, these new contracts should generate, in aggregate, additional
revenues of £1,705,000.

The Board is particularly pleased to have obtained a further contract in the
Bristol area from the University of the West of England. Part of this contract
was formerly operated by South Gloucestershire Bus & Coach Company Limited 
('SGBCC'), but the new contract is a considerable advance on this.

The Group has been awarded two new services by Worcestershire County Council,
one contract with a term of four years and the other with a term of three years,
and several smaller contracts by local educational authorities in the West
Midlands. Also in the West Midlands, the Group has been awarded extra routes by
Transco for staff transportation, to add to the existing work already undertaken
for this organisation.

Finally, out of the Group's Heathrow depot, the Company has won a new contract
from Qantas to transport its aircrew and GlaxoSmithKline has awarded the Company
an enhancement of the services it presently runs for it.

Following on from the contract awards announced in February of this year, these
awards mark another significant step forward for Rotala in building its
operations organically as well as by acquisition.  The Board is delighted by the
strength of the flow of business this year and by its ability to win new
contracts; the Company remains on track to meet its full year expectations. The
award of these new services emphasises the Company's commitment to increase its
turnover and to become a significant force in transport operations in its chosen

John Gunn, Chairman of Rotala, commented 'Our executive team is to be
congratulated on achieving further contract successes. We look forward to
creating a significant transport company in the years to come, based on our
original business model of well-targeted acquisitions taken together with
further organic growth.'


Further to the announcement by the Company on 18 June 2007, Rotala is pleased to
announce that it has completed the acquisition of North Birmingham Busways
Limited ('NBB') and the purchase of the first phase of contracts and assets from


NBB is a bus company that operated 26 buses from a site in the Erdington
district of Birmingham, some two miles from the Company's Long Acre depot.  NBB
is long established on a number of its routes and the majority of the work
undertaken by NBB is commercial stage carriage.  Approximately one third of its
revenues derive from contracts with Centro, which is the operating name of the
West Midlands Passenger Transport Executive.

The Directors believe that immediate cost savings can be made from a reduction
in maintenance, accounting and administration overheads. Integration of the
NBB's business into the existing business of the group has already begun. NBB's
fleet of buses moved to Long Acre over the past week-end.


In the first phase, the Group has taken a sub-contract of a contract with
Bristol City Council for the provision of four bus routes in Bristol until such
time as this contract can be novated to it; it has acquired eleven vehicles to
service these routes and the existing University of West of England contract
referred to above.

As set out in the final sale and purchase agreement with SGBCC, the Group, in
total, will acquire 64 buses for a price of £1.04 million. The right to operate
the routes that these buses run on will be acquired for a consideration of a
further £600,000. The acquisition of the buses and routes will be in a number of
tranches but will be completed in full by 31 March 2008. The total consideration
of £1.64 million will be apportioned to particular buses and routes on
completion of the acquisition of these buses and routes and will be paid in

An update on the ongoing acquisitions of the bus business of SGBCC and Ludlows
of Halesowen Limited will be announced by the Company in due course.



John Gunn, Chairman                                                020 7236 6236
Kim Taylor, CEO                                                     07918 883796
David Seal / Rhod Cruwys, Blue Oar Securities Plc                  020 7448 4400

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