DDD.L Regulatory News (DDD)

6 February 2013

DDD Group PLC

Year end trading update - strong royalty revenue growth

DDD Group plc (AIM: DDD, OTCQX: DDDGY, 'DDD,' the 'Group'), the 3D solutions company, today issues a trading update for the financial year ended 31 December 2012.

The Group expects total revenue for the full year to be approximately $8.6 million, up 56% from 2011 and in line with the Board's expectations, as DDD continues to leverage demand for its TriDef 3D technologies in the television (TV), personal computer (PC) and mobile device markets. Gross margin is expected to be 97%, up three percentage points from 2011. Cash and receivables (including earned royalties) at the end of the period were in excess of $5.1m of which net cash was $3.6m (net cash as at 31 Dec 2011: $3.1m). The Group has no debt.

Demand for the Group's TriDef® 2D to 3D conversion products rose again, with approximately 15m units shipped, up 67% from 2011. This brings the cumulative number of consumer devices shipped with TriDef 3D to more than 26 million units worldwide at the end of December 2012.

Compared to 2011, shipments by TV chip manufacturers grew 67% while PC software shipments grew 172%. Mobile IP shipments decreased by 58% due to delays in next generation mobile and tablet 3D display panel availability. The Group expects mobile shipments to return to growth in 2013 on the back of emerging demand for tablet PCs with 3D functionality.

DDD introduced its Yabazam! 3D Smart TV app during the year on both Samsung and LG Electronics' 3D TV platforms. The growing library of Yabazam! content is now available on a video on demand basis in 13 countries and recently became available in the United States for a monthly subscription. The Yabazam! Smart TV app has now been downloaded almost 250,000 times and is being viewed by over 2,100 users daily.

Yabazam features a wide range of 3D content, including independently produced 3D movies, documentaries, live action comedies and animated features from producers around the world and DDD releases new 3D titles on a weekly basis.

During 2012, the Group licensed certain patent rights to Samsung Electronics under which Samsung may undertake offline conversion of content from 2D into 3D.

In December, the Group completed a listing on the OTCQX® marketplace in the United States under the symbol DDDGY to provide US-based investors with easier access to DDD shares.

At the Consumer Electronics Show in Las Vegas in January 2013, DDD debuted a number of new 3D solutions aimed at the growing market for 3D mobile devices - including smartphones, tablets and personal media players.

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

"Continued demand for DDD's TriDef 3D technologies has resulted in another strong set of results and as the 3D consumer market continues to grow, we are exploring emerging revenue models. These include the provision of originally made 3D content to the growing number of 3D consumer devices through our Yabazam! service.

"We continue to make solid progress with our latest TriDef solutions for Android-based tablets and smartphones, and we expect to conclude further license agreements in this growth market.

"For 2013, we will continue to focus on supporting our existing licensees, securing new licensees in new 3D consumer markets, further expanding the library and availability of the Yabazam! content portal in TV and tablets and evaluating opportunities to license the Group's international patent library."

DDD expects to publish its full year results for 2012 on 8 April 2013.

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 Samsung, LG Electronics, Sony and Lenovo license these solutions. Over 26 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) and in the United States on the OTCQX Market (OTCQX:DDDGY). For more information please visit www.DDD.com.