1 A BUSINESS TRANSFORMED May 2006

2 Financial Highlights ▬Turnover up 76% to £6.91m (2005: £3.92m) ▬Operating profit up 30% to £1.00m (2005: £0.77m) ▬Profit before tax up 20% £0.94m (2005: £0.78m) ▬Net profit up 117% to £1.70m (2005: £0.78m) ▬Strong organic growth of 29% from continuing operations ▬Acquisitions: £0.53m turnover and £0.15m operating profit ▬Strong cash generation of £0.95m ▬Earnings per share up 64% to 16.39p (2005: 10.02p) ▬Maiden dividend of 0.75p

3 Corporate Highlights ▬£4.0m acquisition of Mount Lane: November 2005 ▬£1.0m acquisition of Customer Projects: February 2006 ▬Group reorganised into one Best Practice operating unit ▬Growing market share PRINCE2 95% up. Market growth of 30% ITIL 157% up. Market growth of c.100% ▬ILX Group unique offering: computer based training, classroom based training project management implementation consultancy services

4 The ILX Group ▬Vocational Education & Training Specialists ▬Business transformed over past four years ▬Five successful acquisitions since February 2004: - 1.Key Skills (PRINCE2 & ITIL Computer based training) 2.Computa-Friendly (IT Classroom training) 3.Mindscope (PRINCE2 & ITIL classroom training) 4.Mount Lane (Desktop migration projects) 5.Customer Projects (Project Management consultancy) ▬Strong organic growth ▬ 30% pa in past 2 years ▬Now reorganised around Best Practice market

5 Key Markets Served Key Markets Served BEST PRACTICE ▬PRINCE2 project management industry standard: - Market for training worth over £100m Growing at 25-30% p.a. Main markets UK, Europe, Asia Pacific & Australasia Classroom training currently dominates market ▬ITIL (IT Infrastructure Library) industry standard for service management: - Market for training larger globally than PRINCE2 Market virtually doubled in 2005 Major demand from Europe, North America, Asia Pacific, Australasia Classroom training still predominant

6 ILX Current Activities Best Practice PRINCE2 & ITIL computer-based training PRINCE2 & ITIL classroom training Project Management implementation consultancy Desktop Migration Projects & Helpdesk Support Finance Financial awareness e-learning Global demand driven by competitive pressures & regulation Bespoke Training Solutions Built to order e-Learning & classroom training

7 Ministry of Defence ILX – Leading Clients Over 2,000 customers served in last financial year

8 ILX Group Results Income Statement £000s Year ended March 2004 (UK GAAP) Year ended March 2005 (IFRS – As restated) Year ended March 2006 (IFRS) Revenue1,6063,9246,913 Cost of sales(299)(957)(2,336) Gross profit1,3072,9674,578 % sales 81%76%66% Distribution and administration costs(1,336)(2,122)(3,577) Profit from operations(29)7251,001 Interest(63)57(59) Profit before yax(92) Tax--758 Profit for the period(257)7821,699 Earnings per share (basic)(2.7)p10.0p16.4p

9 ILX Group Financials Balance Sheet £000s As At End March 2004 (UK GAAP) As At End March 2005 (IFRS as restated) As At End March 2006 (IFRS) Tangible assets Intangible assets4,7906,81712,386 Fixed assets5,0107,07912,519 Deferred tax asset--789 Trade and other receivables5581,0592,031 Cash and cash equivalents Trade and other payables(756)(674)(1,735) Deferred consideration-(305)(237) Debt due in 1 year(221)(449)(146) Net current assets ,348 Debt due after 1 year(1,543)(921)(677) Contingent consideration - - (270) Net Assets3,5926,46112,920 Share capital & other reserves9,10711,23810,857 Retained earnings(5,515)(4,777)2,063 Total Equity3,5926,46112,920

10 ILX Group Financials Cash Flow £000s Year ended March 2004 (UK GAAP) Year ended March 2005 (IFRS as restated) Year ended March 2006 (IFRS) Cash from operating activities(298) Interest and tax(63)(159)(246) Capital expenditure(2)(28)(90) Product development-(198)(474) Sale of fixed assets--206 Acquisitions(1,759)(3)(840) Net proceeds of share issues1, Increase in / (repayment of) borrowings893(595)(255) Change in cash360128(25) Net Debt £000s As At End March 2004 As At End March 2005 As At End March 2006 Closing cash Closing debt(1,771)(1,076)(821) Closing net debt(1,227)(404)(175)

11 ILX Group Strategy ▬Build market leading presence in vocational training High end trainingHigh end training well defined marketswell defined markets ▬Fragmented market; numerous acquisition opportunities ▬Best Practice markets offer major potential for growth ▬Reputation for delivery, helping to drive market share gains

12 Strategic Driver 1 - Organic Growth ▬Keep pedal on organic growth Organic Growth 30% pa over past two years PRINCE2 and ITIL market growth high and sustained Continue investing in higher growth areas ▬Innovate to stay ahead Product & proposition Thinking bigger and broader; not just another training supplier Delivery and after sales crucial to reputation and credibility

13 Strategic Driver 2 - Acquisitions ▬Vocational Training Sector Highly fragmented Many players struggling with legacy business models Successful business owners often have no natural exit route ▬Options include: - Continue consolidating in Best Practice activities Open new front with divergent acquisition Look for weightier targets

14 FSA Compliance HR Compliance Best Practice Gov’t backed Skills Initiatives Banking & Finance The ILX Target Market – Vocational Training High end trainingHigh end training well defined marketswell defined markets

15 Current trading and outlook ▬First two months of trading very encouraging ▬Significant organic growth on like-for-like figures ▬Outlook very positive