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Clarity Commerce Solutions plc

("Clarity" or "the Company")

Trading Update

Clarity Commerce Solutions ("Clarity"), a leading supplier of software solutions for the retail, entertainment, hospitality and leisure sectors, is pleased to provide the following trading update covering activity since its AGM statement of 28 September 2011. During the last month the business has seen a number of contract wins and successful deployments across its market sectors as outlined below:

Retail

We are delighted to announce a landmark contract win with the entertainment & technology retailer HMV. The award of the £250,000 contract is strategically significant, marking the introduction of Clarity's cloud-based, real-time promotions engine software to the UK. This will put HMV at the vanguard of modern retail promotions practice, enabling the retailer to offer exactly the same promotional offer mechanics across all its sales channels at the point of purchase - giving customers a more personalised and consistent experience, whether shopping at HMV's 250 stores across the UK & Ireland or online at hmv.com.

We are now in pilot in 39 Iceland stores with our electronic savings and smart couponing solution. The solution has been well received and we are now planning the rollout to the remaining 700+ stores.

Dune, the fashion shoe retailer, has selected Clarity's innovative 'People Service' as its core central system to store and maintain customer details that are captured by its ClarityLive POS system. Dune implemented ClarityLive POS in all of its stores earlier this year and the People Service will be deployed later this month.

Debenhams has recently released its first iPad application which includes the Clarity provided 'Debenhams online booking system'. This will allow Debenhams customers to book personal shopper appointments using their iPad whilst on the move and is an important extension to the web based service that is already provided by Clarity.

The 400 store Dutch grocery chain C1000 has committed to extend its implementation of self-checkout stores using the innovative solution from Clarity. This follows a successful pilot earlier this year.

Also in the Netherlands, the bakery chain Bakker Bart has finished deploying the ClarityLive POS software to all of its sites which number just under 200.

The major Scandinavian grocery chain, Coop Denmark, has begun a 4 store pilot with ClarityLive Data as planned. The rollout to all of its Fakta brand stores remains on target to complete by the end of 2011. The full rollout across over 1000 Coop Denmark stores and fascias remains on track for 2012.

Clarity's US operation continues to perform strongly, signing significant repeat business with a number of existing customers. In addition, the active promotion of the ClarityLive 'Data', 'Refunds' and 'Digital Receipts' products has proved very successful, with strong interest, especially from major retailers, and a healthy pipeline of qualified opportunities.

Entertainment

Merlin Entertainments Group, the world's second largest visitor attraction operator, has continued the rollout of ClarityLive for Entertainment into its LEGOLAND parks with the deployment of ClarityLive POS at LEGOLAND Billund. LEGOLAND Billund is the original LEGOLAND themed park opened in 1968 and today is the most famous and popular amusement park in Denmark.

The Parques Reunidos park, 'Bobbejaanland', will benefit from a full ClarityLive solution for its retail stores and its food and beverage outlets when they open next year. This is the first of a number of exciting ClarityLive initiatives that are under discussion with Parques Reunidos for deployment to their various parks.

In France, our strategy of migrating existing independent cinema customers to TIMS 2010 is also proving to be very successful with 15 of 41 sites already converted. The most recent of these this month was the Atalante Cinema in Molsheim, Alsace in a deal worth €160k.

These developments, following on from the recently announced projects at Legoland Florida and Legoland Carlsbad, demonstrate the continuing progress being made in the Entertainment sector.

Hospitality and Leisure

Our business in these sectors remains healthy with excellent repeat business from our existing customers and a growing number of pipeline opportunities. Our decision to focus on a lower number of highly qualified bids has meant that we are engaged more closely with our prospective customers and we expect this to result in a higher conversion rate.

In addition, the leisure division campaign to migrate existing customers to the new ClarityLive platform is proving successful. After successful implementations at Lee Valley Regional Park Authority, Aspire Sports and Cultural Trust have implemented all leisure modules across 3 sites and are delighted with the operational speed and the reduced training times.

Worthing Borough Council has signed a contract to install the solution across four sites starting this November and the Isle of Wight Council will begin installing ClarityLive in their 9 leisure sites, including the Median Theatre commencing January 2011.

Channel Operations

Clarity's strategy of partnering with experienced and carefully selected Value Added Resellers to take Clarity's products to market in new geographies has taken a significant step forwards with the signing of LineaDatascan ("Linea") as Clarity's exclusive Value Added Reseller for a number of Latin American countries. LineaDatascan will represent Clarity in Colombia, Peru, Ecuador, Chile, Argentina, Bolivia, Paraguay, Uruguay, and Venezuela and the partnership is already gathering pace with a top Latin American retailer close to buying the ClarityLive Data product.

LineaDatascan, a business technology solutions and services specialising in mobility and point of sale systems, has led the market with maturity and dedication to service. Linea employs more than 170 professional staff with extensive experience in implementing large projects for major Latin American companies. Linea was born from the merger between Linea Informatica and Datascan of Colombia, two of the largest technology companies in Colombia, each with over 20 years' experience, giving the company increased market share. Linea has offices in Bogota, Barranquilla, Medellin, Cali, Caracas, Quito, Lima and Weston Florida (USA), presenting a portfolio of services designed to provide comprehensive solutions with the support and backing of the world's leading providers.

The Board is encouraged by this progress and expects to deliver further new business in the near term.

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