DDD.L Regulatory News (DDD)

12 June 2012

DDD Group PLC

Trading update - strong, diversified revenue growth continues

DDD Group plc (AIM: DDD, 'the Group'), the 3D solutions company, will report at its AGM later today that first quarter revenues were approximately $1,815,000, up 86% compared to the same period in 2011.

During the period, revenues derived from royalty bearing units shipped by OEM licensees, resellers, and direct-to-consumer software sales increased by 9% to 99% (Q1 2011: 90%).

Demand for the Group's TriDef® 2D to 3D conversion products increased significantly in the first quarter of 2012, with approximately 3.5m units shipped, up 50% compared to the same period in 2011 and up 63% from the fourth quarter of 2011.

This brings the cumulative number of consumer devices shipped with TriDef 3D to more than 15 million units worldwide at the end of March 2012. Shipments by TV chip manufacturers grew 28% over the first quarter of 2011 while PC shipments grew 1,771% over the comparable period. Mobile phone shipments represented approximately 5% of the quarterly volume.

During the first quarter, cumulative shipments of TriDef 3D for PCs and TriDef 3D Mobile each topped one million units. The TriDef 3D software has become an industry standard, capturing an estimated 85% of the 3D PC market during 2011, while shipments of TriDef 3D Mobile have exceeded one million within the first nine months of launch.

In February, DDD teamed up with the leading provider of software to the internet café (I-Café) market in China with the objective of introducing 3D games to the sizeable I-Café market, estimated at over 144,000 locations. Good progress is being made on the integration of DDD's TriDef 3D game conversion solution into the software and beta testing is expected to begin in select I-Café locations early in the third quarter.

As part of the planned expansion into the emerging market for glasses-free 3D mobile devices, DDD recently signed two evaluation agreements for TriDef Mobile software with customers who are creating 3D reference designs for 3D smartphones and 3D tablet PCs. LG also launched its second generation Optimus 3D Max glasses-free smartphone in March, which uses DDD's TriDef Mobile Android software for 2D to 3D video conversion.

In conjunction with the international adoption of DDD's TriDef 3D solutions, DDD also introduced a new website at TriDef.com that is available in English, Korean, Japanese and Chinese.

DDD launched the Yabazam! 3D app for both LG and Samsung's range of 3D Smart TVs. The Yabazam! 3D app has rapidly become one of the top rated Smart TV apps on LG's 3D TVs in Korea and the US. Between mid-February and the end of May, the app has been downloaded more than 20,000 times and averages more than 8,000 launches per week on LG 3D Smart TVs while still in its free trial phase. The Yabazam! 3D app for Samsung's 3D TVs was launched on 4 June achieving over 2,000 downloads in the first four days from customers in the US, Korea, Hong Kong, Taiwan, Germany and the UK.

The recent introduction of the "Safety Geeks: SVI" series on 3D Blu-ray® and the launch of the Yabazam! 3D Smart TV app on market-leading 3D TVs is part of DDD's planned '3D Everywhere' initiative to bring the highest quality 3D content to the latest 3D consumer devices. Yabazam! 3D has now licensed 58 3D titles, up from 32 at the beginning of the year. As the market for 3D Smart TVs continues to grow, DDD plans to introduce pay-per-view and subscription-based content delivery services to Yabazam! 3D customers with 3D Smart TVs and PCs.

Chris Yewdall, DDD's Chief Executive Officer, said:

"DDD Group is continuing its successful development into a 3D solutions company as we build upon the momentum in our technology licensing business and establish a broader distribution channel for our 3D content. The first quarter's performance is in line with the Board's expectations and we expect continued growth of the TriDef 3D technology licensing and Yabazam 3D content distribution businesses throughout the remainder of the year."

Results for the first half of 2012 are expected to be published in late September.

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About DDD Group

DDD transforms the visual experience by bringing 3D to the consumer. Its TriDef®3D solutions convert 2D to 3D automatically, and enable delivery to 3D TVs, PCs and mobile devices. Leading brands including Intel, Samsung, LG Electronics and Sony license these solutions. Over 15 million TriDef 3D products have been shipped by DDD's licensees worldwide. DDD's Yabazam! label delivers 3D everywhere with its online content portal and Smart TV apps. DDD's shares are quoted on the London Stock Exchange's AIM Market (AIM:DDD). For more information please visit www.DDD.com.