DCD.L Regulatory News (DCD)

3 Feb 2005 07:00

Embargoed: 0700hrs, 3 February 2005 Digital Classics plc ("Digital Classics" or the "Company") Trading Update Digital Classics plc is pleased to provide the following trading update for thesix months to 31 December 2004:Trading over the period has been strong, although the seasonal nature of thebusiness means that the second half performance traditionally exceeds the firsthalf. The Board is pleased with the trading outlook and full year performanceis anticipated to be in line with expectations.Digital Classics Distribution * Record number of contracts concluded * Several large deals under negotiation In Digital Classics Distribution, the last half-year has largely been spentconsolidating the libraries, gaining large volumes of extra programming to selland organising the rights management systems to handle sales as efficiently aspossible. In this sector it is customary for the bigger-volume deals, like theones currently under negotiation to take several months to complete.Shareholders will be updated as appropriate.Iambic Productions * Financial performance ahead of same period last year * Four new projects commenced in the period - most revenues from which are expected to be received in the second half of the current financial year * Major new projects in negotiation * Strong outlook Iambic Productions maintains that no production may be commenced unlesspre-commitments from buyers cover not only direct costs of production but allrelevant overheads plus a further margin as well. This is to say that Iambicwill not produce a programme unless it is break-even or profitable before thecamera even begins to roll.Digital Classics Education * `Preferred Supplier' status secured to supply BBC with educational programming for the digital curriculum * Company believes BBC contracts potentially worth several million pounds per year for several years in additional revenue to the consortium, of which Digital Classics is a member * New clients won for MusicSuite educational product * High client retention and renewals MusicSuite is sold to schools in the form of one-year renewable site-licences,so this represents considerable year-on-year growth. Tendering for the abovementioned BBC projects is expected start during 2005.Interim ResultsThe Company expects to announce its interim results for the six months to 31December 2004 in March 2005. -Ends- Contacts:Chris Hunt, Chief ExecutiveDigital Classics PlcTel. 020 7636 1400Ben SimonsHansard CommunicationsTel. 020 7245 1100END