Chairman's Statement

May 18, 2005

At today's annual general meeting, Barry Welck, Chairman, stated:

"The Company's performance for the year to date is in line with expectations, with gathering momentum in sales of product and services. The Company has continued to develop its customer base with new software orders received this year from the Italian Parliament, Snecma (France), and the US Air Force, and service contract orders from Boeing and Hewlett Packard. The company has benefited from improved focus on delivering content engineering solutions following the re-organisation of the Company at the end of 2004. Operating costs have also been further reduced.

"The Company is also pleased to announce its first contract for CF2, Stilo's content framework product, from a major publishing company. The contract, with a value of approximately £170,000, is expected to commence this month, and be completed in 2005.

"The Company remains well positioned to exploit the market for content engineering solutions, and to deliver ongoing growth in profits. The Board continues to explore wider opportunities for the Company including acquisition, merger or with trade partners."

All resolutions put to the meeting were duly passed.

Enquiries:

Les Burnham, Chief Executive, Stilo International plc
01793 441444

Russell Cook, Charles Stanley & Co. Limited
020 7953 2000