2004 AGM statement

Epic (“Epic” or the “Company”)

AGM statement
Appointment of Chairman

At the Annual General Meeting of the Company, to be held at 12.00 p.m. today, 12 October 2004, Michael Inwards, Chairman of Epic, will make the following comments:

"Current trading is satisfactory with a strong order book for both the public and private sectors. Our newest public sector, defence, is proving to be a growth area, indeed, significant opportunities across the public sector have emerged which confirm its renewed focus on online learning and which should underpin a solid performance for the year.

Following more than eight years in the role, I have agreed with my fellow directors to step down as chairman of the board with effect from today. I will remain a non-executive director of the Company until 31 May 2005.

John Gordon has been selected as the new non-executive chairman by the Board and will assume the role with effect from the conclusion of the AGM. John is an experienced non-executive director and non-executive chairman, with an extensive track record in small and medium sized quoted businesses. He has hands-on experience of a successful start-up, Beeson Gregory Limited, of which he was a founder shareholder and director as well as being Head of Corporate Finance. His City background also brings particular skills in investor relations. The Board feels that John’s experience in the City along with his experience in growing companies will be of particular value in taking Epic forward to greater success.

It remains our intention to acquire complementary businesses and we are currently looking at several opportunities in this regard.

Over the past few years the Company has successfully generated cash which is surplus to requirements for organic and acquisition-led growth. The Board will therefore be utilising the authority granted by shareholders at last year's AGM to make market purchases of its own shares. If this authority is fully utilised, such actions will result in the re-purchase for cancellation by the Company of approximately £2.2m of Epic shares. In addition, the passing of Resolution 7 (authority to purchase shares) at today’s AGM will authorise the Board to make further market purchases of Epic shares.

As the leading company in the online learning sector, it is our intention to continue to grow a profitable and cash-generative company with an enviable client base. We would like to thank our staff, clients and shareholders for their contributions in reaching this goal.”

Further information on John Gordon

The following disclosures are being made pursuant to Paragraph F of Schedule 2 to Part One of the AIM Rules:

Full name and age:

John Edwin Gordon (FCA) aged 64.

Current directorships:

The Flyfishers’ Company Limited
Imprint Search and Selection plc
Cambridge Rowing Trust
Lavendon Group plc
Alizyme plc
Alizyme Therapeutics Limited
UCM Group plc

Directorships in the last 5 years:

United Overseas Group plc
Realm Group Limited
Realm Products Limited

Mr Gordon has also confirmed that.

• he has no unspent convictions in relation to indictable offences;
• he has not been involved in any bankruptcies or individual voluntary arrangements;
• he has not been involved in any receiverships, compulsory liquidations, creditors voluntary liquidations, administrations, company voluntary arrangements or any composition or arrangements with creditors of any company where he was a director with an executive function at the time or within the 12 months preceding such events;
• he has not been a partner at the time of or in the 12 months preceding any compulsory liquidation, administrations or partnership voluntary arrangements of any partnership;
• he has not been a partner of any partnership at the time or in the 12 months preceding any receiverships of any asset of such partnerships and none of his personal assets have been subject to receiverships; and
• he has not been the subject of any public criticism by any statutory or regulatory authority and has not been disqualified by a court from acting as director of a company or from acting in the management or conduct of the affairs of any company.

For further information:

Epic
Michael Inwards (Chairman) 01273 728686
Donald Clark (Chief Executive Officer) 01273 728686
Stephen Oliver (Chief Financial Officer) 01273 728686

Beattie Financial
Brian Coleman-Smith / James Chandler / Gemma Smith 020 7398 3300

BACKGROUND NOTE: ABOUT EPIC

Epic is the market leader in e-learning, blended learning and knowledge solutions. Using the best of new technologies alongside traditional means, Epic helps people to know more, learn faster, perform better - bringing benefits to both organisations and individuals.

Epic has an unrivalled client list in both the private and public sectors. Private sector clients include the major banks, retailers and consultancies. In the public sector, Epic has clients in government departments, education, health and now in defence.