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2002 Annual Report and Accounts

Howard Shore, Executive Chairman of Shore Capital Group, said:

The difficult trading conditions which we were experiencing when we issued our interim results in August 2002 persisted throughout the remainder of 2002 and into the current year. As I commented at that time, on the one hand, the "bear" market has proved almost unrelenting and has continued for longer than could have been anticipated. On the other hand, our industry being in turmoil offers a rare opportunity for those flexible enough to re-engineer their business model. We are therefore engaged in a balancing exercise where the aim is to create a platform capable of taking advantage of new business flows when confidence improves, but, at the same time, seeking to avoid the burden of overheads higher than we can comfortably carry in the present tough conditions. We are seeking to strike a balance between the short and medium term and have increased our capability in market-making and fund management considerably.

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