HLL Hill Station

    Hill Station Plc (the "Company")                        

                         Trading and financing update                          

On 20 August 2007, the Company announced it had raised approximately �3 million
by the placing of 1,320,000,000 new ordinary shares at 0.25 pence per share.
The net proceeds of the placing were intended to fund the acquisition of the
trading assets of So Real Ice Company Ltd as well as providing sufficient
working capital for the Company through the winter months and into the next
`ice cream season' in March 2008.

Trading since August 2007, through to October 2007, has continued to be
difficult with sales being significantly below budget which has had an adverse
effect on the financial condition of the group.

The substantial stock overhang created by the unseasonably poor weather in the
summer has continued to be traded out reflecting lower than expected
production. Structural changes in the sector are creating substantial
opportunities in the near term, offsetting the pressures being created by lower
than anticipated sales over the recent months.

Consequently, the Company is currently monitoring its working capital position
and short term financing requirements.

The Board however, is pleased to announce progress that has been made since
August 2007 in the following areas:-

  * The transfer and integration of the So Real Ice assets was completed by
    late September 2007, on time and on budget; since then all So Real Ice
    products are made in Cwmbran;
   
  * Price increases are being agreed and implemented ,mainly with immediate
    effect, with customers following a year of significant raw material
    increases;
   
  * New business opportunities have arisen from both new and existing
    customers; and
   
  * Manufacturing and overhead cost reductions have been implemented since
    August 2007, in excess of those budgeted.
   
  * Trade launches of new products are progressing well and should lead to
    increased market penetration in 2008.
   
The Board therefore remains confident as to the medium term opportunities and
prospects for the group.

A further announcement will be made in due course.

Enquiries:-

Hill Station plc

Bill Mapstone, Chairman

Tel: 01633 833 000

Nominated Adviser to Hill Station plc

City Financial Associates Limited

Tony Rawlinson

Tel: 020 7492 4777



END

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