Trading Update

Stilo International plc ('Stilo' or the 'Company'), the XML content engineering company, is issuing this trading statement for the year ended 31 December 2004 in advance of its preliminary results for the year which are due to be announced on 3 March 2005. Sales for 2004 will be lower than anticipated, overall slightly below the £2.28 million announced for 2003, but with pre tax losses showing a significant reduction.

The recent closure of the loss-making knowledge engineering division in the UK and acquisition of the content engineering division of Xia Systems Corporation in North America, has significantly enhanced Stilo's prospects and we expect strong revenue growth and profits in 2005.

The Board of Stilo is also pleased to announce that it has appointed Mr Richard Alsept as Finance Director.

Richard, aged 39, a qualified chartered accountant, has acted as Stilo's Chief Financial Officer and Company secretary since October 2002.

The Board also announces that Stephen Buswell and Professor Roy Pike, founding members of Stilo, have resigned as Directors of the Company with immediate effect. The Board would like to thank Mr Buswell and Prof. Pike for their contribution to the Company over many years.

Les Burnham, Stilo's CEO, commented:
'The Board changes announced today reflect the recent structural changes undertaken by the Company and the need for an even stronger financial focus enabling us to maximize the opportunities in 2005'.

Enquiries:

Les Burnham, Chief Executive	Stilo International plc	01793 441 444
Russell Cook	Charles Stanley	020 7739 8200

Note: Richard Alsepts's other current and previous directorships over the last 5 years are:
Current:
Richard Alsept Ltd

Previous:
Lifestyle Upholstery Ltd

There are no other matters to be disclosed in relation to this appointment under paragraph (f) of Schedule Two of the AIM Rules.