QXL ricardo plc (“QXL” or the “Group”; LSE: QXL.L; Nasdaq: QXLC; Frankfurt: QXL.F), the pan-European online auction company, today announces results for the third quarter ended 31 December 2001.

Commenting on the results Mark Zaleski, Chief Executive Officer, said:

“These results reflect another solid quarter for QXL and represent the fifth consecutive quarter in which we have increased gross profit and reduced operating expenses. Our focus on the customer proposition and product enhancements is increasing the underlying transaction volumes. The co-branding programme, which we are announcing today, follows the success of co-branded auctions with many leading brands and portals, and will drive further traffic to our sites. We anticipate that the significant progress we have made in this quarter in cost control, marketing partnerships and enhancing the customer offering, will provide a solid platform for future growth. Finally, I would like to welcome Thomas Power to the board as a non-executive director and look forward to working with him.”

Third Quarter ended 31 December 2001 – Operating and Financial Highlights

• Gross profit increased 92% over the quarter ended 31 December 2000 to £1.4 million.
  
• Trading loss decreased 56% over the quarter ended 31 December 2000 to £5.4 million.
  
• Operating expenses reduced 47% over the quarter ended 31 December 2000 to £6.8 million
  
• Increase in monetisation rate to 5.8% from 2.9% for the quarter ended 31 December 2000.
  
• Agency Gross Auction Value increased 17% to £24.5 million over the quarter ended 31 December 2000.
  
• 3.7 million members at quarter end, a 41% increase over the number at 31 December 2000.

Recent Developments

• Launch of the Co-Branding Programme, providing an integrated auction solution to QXL’s existing and future partners.
  
• Fee introduction in Norway and the Netherlands.
  
• Pan-European marketing partnership signed with MSN, Europe's number one web destination, for an exclusive content and e-commerce agreement.
  
• Pan-European implementation of DoubleClick's DARTmail email platform, and DART for Publishers (DFP) ad-serving technology.
  
• Co-branded auction agreements signed with the Telewest site BlueYonder.co.uk and with SceneOne.co.uk and Bravo.co.uk of Flextech Interactive.
  
• Exclusive auction partnership signed with SFDRS, the leading Swiss television station, to provide auctions during the 2002 Winter Olympics.
  
• Distribution deal with Scandinavian Online, Norway’s largest portal and internet site, whereby QXL.no will be the exclusive auction partner.

For further enquiries please contact:

QXL ricardo plc
Mark Zaleski, Chief Executive Officer Robert Dighero, Chief Financial Officer Alison Cabot, VP Communications	Tel:	020 8962 7231 on 5 February 2002 020 8962 7231 all other dates
Financial Dynamics
Sarah Marshland James Melville-Ross Juliet Clarke	Tel:	020 7831 3113

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