DDD.L Regulatory News (DDD)

10 February 2015

DDD Group plc

Financing Update and Notice of Results

DDD Group plc (AIM: DDD; OTCQX: DDDGY; "DDD" or the "Company") confirms that it is considering a range of options to strengthen its balance sheet including a potential equity fundraising as part of the financing plan announced on 31 July 2014.

On 31 July 2014, commitments from related parties for the issue of £535,000 of Convertible Unsecured Loan Notes ("Notes") were announced as part of a plan raise up to £2,100,000 to complete the development of new technologies and applications intended to be licensed into new markets that are in addition to the Company's 3D technologies and solutions.

On 15 January 2015 the Company provided a trading update describing the positive initial market reaction from customers at the Consumer Electronics Show to these new technologies and confirming that the Company was already engaged in technical and commercial discussions with customers in the smartphone and tablet markets related to these new products. The Company continues to actively pursue development and license agreements for these new products as customers evaluations conclude. Promotional videos of the new products can be viewed on the following links: https://vimeo.com/115739664 and https://vimeo.com/118312875

The Company is also benefitting from a cost reduction plan that has delivered annualised operating expenditure savings of approximately $1 million including the closure of the YabazamTM 3D movie streaming service in December 2014. Additionally, the Company continues to support the patent licensing program that commenced during 2014 and continues to invest in patenting inventions that underpin the new 2D products. Currently, the Company has 88 granted and pending patents covering 16 inventions.

Against this background, the Directors are currently considering their options in relation to a possible equity fundraising to be undertaken in the first quarter of 2015 to raise up to £1.5m. Completion of the financing is expected to provide sufficient working capital with net proceeds being used to complete the development of an Android version of the TriDef® SmartCam solution as well as accelerating business development and licensing activities for the recently announced products. The development of the first phase of the KapChat™ application for social photography will be completed with the objective of launching the application before the end of 2015. Excluding first quarter 2015 3D technology royalties from existing licensees, the Company currently has sufficient working capital to meet its requirements through the second quarter of 2015.

Accordingly, the Board is exploring the financing opportunities available to the Company including entering into strategic partnerships or additional loans on available terms. There can be no certainty that completion of the financing program will be achievable however and further announcements will be made in due course and as appropriate.

DDD expects revenues for the full year period to reach $2.54 million, a gross profit of $2.53 million and an adjusted LBITDAO1 of $800 thousand.

The Company announces that it expects to release its 2014 Full Year financial results during the week commencing 4 May 2015.

1 Loss before interest, tax, depreciation, amortisation, other income and share based payments. The amounts have not yet been adjusted to reflect the accounting treatment for the discontinued Yabazam operation.

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About DDD

DDD transforms the visual experience. Its advanced imaging and TriDef® solutions are licensed by leading brands for use in TVs, tablets and PCs. Over 51 million 3D products have been shipped by DDD's licensees worldwide. DDD's shares are quoted on the London Stock Exchange's AIM Market (AIM: DDD) and the OTCQX (DDDGY). For more information please visit www.ddd.com.