DDD.L Regulatory News (DDD)

2 August 2011

DDD Group PLC

Half year trading update

DDD Group plc (AIM: DDD, 'the Group'), the 3D solutions company, announces a trading update for the six months ended 30 June 2011.

Trading is in line with the Board's expectations as the Group continues to benefit from increased demand for 3D systems. Based on royalty reports to date for the first half of 2011, approximately 4.6 million units of the TriDef 2D to 3D conversion solution were shipped by licensees in the TV and PC markets, up approximately 268% over the first half of 2010. Shipments by TV chip manufacturers grew 273% while PC software shipments grew 194%.

The Group expects first half revenues to be approximately $2.3m, up 138% (excluding discontinued operations) and up 121% from the second half of 2010. First half gross margin is expected to be 96%.

Demand for the Group's products in the PC market continues to grow. DDD signed seven new software license agreements with Intel, Samsung, LG Electronics, Chimei Innolux and two additional un-named OEM PC manufacturers. DDD also recently concluded a memorandum of understanding with a leading LCD supplier to supply the TriDef PC software with 3D LCD panels for monitors and notebooks. A number of these new licensees commenced shipment in the second quarter of 2011.

In the TV market, Samsung expanded its product line in the first half of 2011 and began shipping Blu-ray disc players and PC monitors incorporating the Group's 2D to 3D conversion technology under license.

DDD also implemented the TriDef 3D Mobile software on the Texas Instrument's TI OMAP processors for Android smart phones and tablet PCs. This resulted in the Group signing a two year license agreement with LG Electronics, giving LG the rights to install the TriDef 3D Mobile 2D to 3D video conversion software in the LG Optimus 3D 'glasses-free' smartphone. In addition to the OMAP processors, the TriDef Mobile Android application is also integrated with three other mobile processors from un-named chip makers.

Consistent with the growing demand for the Group's TriDef solutions, DDD continued to develop its engineering team, adding a new PC game testing group in Australia and expanding its mobile software engineering resources.

DDD has also expanded its patent library adding further patents awarded in the United States, Japan, China and the Philippines for its 2D to 3D conversion and 3D encoding technologies. This brings the total number of currently issued patents to 53 across 24 countries.

Results for the first half of 2011 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 deliver unlimited content for 3D TVs, PCs and mobile devices. Leading brands including Intel, Samsung, LG Electronics and Texas Instruments license these solutions. DDD's shares are quoted on the London Stock Exchange's AIM Market (AIM: DDD). For more information, visit www.DDD.com.