Extract from - Interim results announcement for the 6 months ended 31 March 2008.   Overview Over the first six months of this financial year ITE’s business units have experienced continued good trading conditions in the Group’s core markets of Russia and the CIS, and the Group’s principal events have performed well. The trading environment in Russia and the CIS has not been notably affected by the conditions of the financial markets in Western Europe and the United States and demand for our exhibitions continues to reflect the growth of the underlying economies in which we operate. The financial results for the first six months reflect changes in the timing of some exhibitions and charges for ‘mark to market’ provisions against derivative instruments arising from the recent appreciation of the Euro against Sterling. The reported revenue of £32.6m (2007: £31.3m) for the first six months represents a 9% improvement on the like for like result for the same period last year (‘like for like’ is adjusted for timing effects for events being held in different periods).  Headline pre-tax profit of £4.7m (2007: £5.5m) is stated after a net £2.8m charge for foreign exchange (2007: £0.3m gain). This net cost, which largely relates to the recent strength of the Euro against Sterling, is expected to be matched by an equal benefit to revenues and profits over the full year. There are a number of events which have moved dates, notably the TransRussia transport event, which will be reported in the second half this year. Reported pre-tax profit for the six months was £3.9m (2007: £4.7m). The Group continues to implement its strategy of strengthening its position in core markets and industry sectors. In February 2008 the Group announced the acquisition of an annual security event in St Petersburg.  Under ITE’s ownership, this event will benefit from the Group’s international marketing network. On 29 April 2008 the Group announced that it had acquired Siberian Fairs LLC which has a strong portfolio of exhibitions in Russia’s third largest city, Novosibirsk. ITE’s management has anticipated the growth of exhibitions in the regional cities of Russia for some time and the acquisition of Siberian Fairs LLC is the first step in ITE’s ongoing regional expansion plan. ITE is presently working with parties who plan to build a new larger and purpose built exhibition facility in Novosibirsk for delivery by 2011. This, when completed, will provide opportunities for the future growth of the Siberian Fairs’s portfolio of events. In Central Asia ITE has advanced $1.5m to support the building of a new 6,000m2 exhibition facility in Atyrau, Kazakhstan. The facility which is planned to be completed in 2010 will facilitate the future development of ITE’s exhibition business in Atyrau. The Board remains committed to returning surplus cash to shareholders via dividends and the buyback of shares. As at 31 March 2008 the Group’s balance sheet recorded net assets of £39.5m (2007: £40.3m) and net cash balances of £42.3m (2007: £37.4m). The Board intends to return surplus free cash flow of the business after dividends to shareholders, through a rolling share buyback programme in the second half. Board and Management Following the unexpected departure of the Group’s CEO, Bill Dye in January this year, the Group’s Finance Director, Russell Taylor has been acting as Chief Executive Officer and together with Edward Strachan has been responsible for the execution of the Group’s plans. The Nomination Committee has carried out an intensive search process and, following that process, has appointed Russell Taylor as the Group’s CEO.  A Group Finance Director will be appointed in due course but, in the meantime, Russell Taylor will continue to hold both functions. Sir Jeremy Hanley retired from the Board after 10 years of duty at the Group’s AGM in March. He was appointed when the Group first listed on the London Stock Exchange and the Board warmly thanks him for his contribution to the development of ITE Group plc over the last 10 years. Neil England has subsequently been appointed as a non-executive Director and brings to the Group extensive experience of sales and marketing in its core markets of Russia and the CIS regions.  Dividend The Board has approved an interim dividend of 1.6p per share (2007: 1.3p per share).  The increase in the interim dividend reflects the Board’s commitment to a progressive dividend policy and its confidence in ITE’s trading prospects. Financial Performance Revenue for the first half increased 9% on a like for like basis compared to last year.  The gross profit margin achieved over the first six months of 42% is an improvement over last year’s comparable margin of 38%. This reflects the effect of the stronger Euro on revenues and the cessation of some less profitable events in ITE’s portfolio.  Operating profit of £6.6m (2007: £4.4m) is stated after administrative costs of £7.4m (2007: £7.7m) which include a foreign exchange gain of £0.7m (2007: £0.5m gain) and £0.8m of amortisation charges (2007: £0.8m).   At 1 October 2007 the Group held €47m of derivative financial instruments extending forward to 31 March 2009. The strength of the Euro against Sterling at 31 March 2008 (€1.26: £1) has required the Group to make ‘mark to market’ provisions against these financial instruments. At 31 March 2008 the Group had outstanding commitments to sell €29m over the next 12 months and carried a provision against these instruments of £3.1m. Group receipts of Euros are expected to be in excess of €29m over the same period. Finance income of £1.1m has increased over last year’s figure of £0.9 million, due to higher average cash balances held over the first six months of the year. Finance costs of £3.9m (2007: £0.5m) for the first six months include £3.5m of charges relating to unhedged derivative instruments (2007: £0.2m). This includes the charges related to the £3.1m ‘mark to market’ provision carried against future derivative instruments.  Headline pre-tax profits of £4.7m (2007: £5.5m) reflect a good underlying trading performance from the business. The trading result stated before foreign exchange charges (which largely relates to future liabilities) was an improvement of more than 25% in both operating and pre-tax profit over the comparable period for last year.  Trading Highlights and Review of Operations In the six months to 31 March 2008 ITE organised 67 events (2007: 62 events) including seven new launch events.  Total square metres sold in the first half fell slightly from 163,100m2 last year to 161,100m2 this year, reflecting the Group’s decision to withdraw from some marginal exhibitions and the effect of exhibitions changing dates between the first and second halves of the year.  A summary analysis of the Group’s sales and margins from its exhibitions business is set out below: The Group’s overall yield for the six month period is £197 per m² (£186 per m² for the same period last year). The change in yield largely reflects the effect of translating Euro denominated revenues at a more beneficial exchange rate. Russia Overall the Russian business achieved similar space sales to last year but produced higher yields, revenues and profits following the withdrawal from some marginal activity and concentration on the growth of its core events. The results include a strong performance from the Moscow International Travel event, which at 20,800m2 reported a 12% increase in space sales. The other principal event taking place in Russia over the first six months of the year, Ingredients Russia performed much as expected selling 5,600m2 (2007: 6,300m2), following a date clash this year with its biennial European competitor. In April TransRussia, which took place in March last year performed exceptionally well growing its space sales by over 30% following its move to larger facilities.  The contribution from this event will be reported in the second half this year. There were other good performances from the smaller events in Moscow including the recent acquisition, Expoclean. Central Asia & the Caucasus Over the first six months space sales in Central Asia and the Caucasus were 14% higher than for the same period last year on a like for like basis, with revenues and profits improving by more than 15%. As reported previously the Kazakhstan Oil and Gas event reported a 15% growth in space sales and a matching revenue growth from the related conference. The Group expanded its portfolio of oil and gas conferences with the launch of an oil and gas conference in Turkmenistan, which was a significant success generating revenue of £0.7m and hosting over 650 delegates. Other notable results from the Central Asia portfolio were the continuing strength of the construction events and ongoing growth from the food sector across the portfolio.  WorldFood Kazakhstan recorded an increase in space sales of more than 15% and KazBuild Spring, now in its third year, achieved an increase of 13%.  In Azerbaijan the main event in the first half was BakuBuild, which is venue constrained and managed a 5% growth in space over last year. The Group is still seeking to find a resolution to the venue issue in Baku which currently inhibits the development of the business in Azerbaijan.  Southern and Eastern Europe Overall the Kyiv business reported space sales 8% higher than for the same period last year. The first quarter saw uncertain trading in the autumn events with Worldfood Ukraine and the Information Communication Technology event both reporting space sales marginally behind last year’s results. After a change in management the second quarter results resumed the strong growth patterns of previous years. The two largest events in Kyiv both take place in February, and both continued to show good growth over previous editions. AgriHort, the agricultural event, increased its space sales by circa 20% to 19,100m2 and improved its yield simultaneously. ITE’s construction event, KievBuild, improved space sales by over 30% to 10,400m2. The last event in the calendar for the first half was the Ukraine International Travel & Tourism event, which in Ukraine’s ‘year of tourism’ was opened by President Yuschenko and increased its size by 10% to 6,700m2. In Turkey, the financial results for the first half were affected by the strength of the Turkish Lira against the US Dollar. Most events in Turkey are priced in US Dollars and as a result reported yields were under pressure for all events. Our 100% owned business, EUF, which held two events in the first half performed well in the circumstances. The ITF business which is 50% owned was also affected by the currency issue but through better control over costs reported improved financial results from a broadly similar trading performance as last year.  UK and Rest of the World MODA, the fashion and footwear business, has found itself in adverse market conditions in the first half. Fashion is a cyclical exhibition business and ITE’s business is performing well against a general downturn in the UK fashion retail trade. The MODA spring event was an unexpected success, with results in line with last year’s event despite space sales being 6% lower than last year at 17,200m2. The event was well attended and there was real enthusiasm from visitors and exhibitors alike. The publishing business continued to struggle in the current market conditions. Outlook ITE has completed its busy programme of April events in Moscow. As anticipated last year the construction event, MosBuild, had its growth suppressed this year by a date clash with a large German exhibition. Nonetheless the combined exhibitions of MosBuild and MosBuild+ grew from last year’s 84,600m2 to 87,200m2 this year. The Moscow International Security event and TransRussia both benefited from a move to better and larger venue facilities, and grew to 7,600m2 (13% increase) and 8,200m2 (30% increase) respectively. The Moscow International Boat Show and Expoelectronica both recorded growth over last year in space sales and a more significant growth in their revenues. This pattern is repeated throughout the events held in April, which have all reported higher revenue growth than space sales, reflecting, inter alia, the effect of the stronger Euro on the Group’s Sterling yields. The trading pattern of the first half looks set to continue with ITE’s more important events experiencing good demand from exhibitors. The continuing strength of the Euro against Sterling will have an increasingly beneficial effect on sales yields for the rest of the financial year. At current exchange rates we anticipate that the gains in revenue and profits realised over the full year will at least match the net costs incurred on foreign exchange at 31 March 2008. In the longer term a continuing strong Euro will have an overall positive effect on the revenues and profits of ITE’s portfolio of events.      At 12 May 2008 ITE had booked revenue of £92.9m for the full year (£85.8m this time last year). On a like for like basis this represents more than a 10% increase over the same period last year.  The second half has started well with the key Moscow events held since 31 March 2008 performing at least in line with our expectations.  Sales visibility remains good, and the Board remains confident of the prospects for the full year.   By the order of the board Chief Executive Officer & Group Finance Director Russell Taylor 16 May 2008   Disclaimer The interim management report has been prepared solely to provide additional information to shareholders as a body to assess the Company’s strategies and the potential for those strategies to succeed. The interim management report should not be relied on by any other party or for any other purpose. The interim report includes forward looking statements made by the directors in good faith based on the information available to us up to the time of approving the interim report. These statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying such forward looking information.