EGI.L Regulatory News (EGI)

Electrical Geodesics, Inc.

Trading Update

A strong finish to the year

EUGENE, OREGON, US, 15 January 2015 - Electrical Geodesics, Inc. ("EGI" or the "Company"), a leading neurodiagnostic medical technology company, will announce its audited results for the year ended 31 December 2014 on 24 March 2015.

On a preliminary, unaudited basis, the Company expects to report full year revenues for 2014 of $13.2m (2013: $11.6m), an increase of some 14% year on year. As announced in December, unaudited revenues for the ten months to 31 October 2014 were $9.8m (an increase of 15% on the same period in 2013). Trading to the end of the year was strong, with revenues in the last two months of the year totaling $3.4m (2013: $3.1m). In addition, the Company recognised grant income of $0.6m in the period.

Orders valued at $0.3m were received before the year end but were not able to be shipped and further orders for $0.5m were received immediately after the year end, delivering a strong start for 2015.

A total of 139 GES EEG systems and upgrades were shipped in 2014 (2013: 99), an increase of 40% and 15 Avatar portable EEG devices were also sold (2013: 4), delivering a very solid increase in the Group's customer base. Our GES systems are now installed in 740 laboratories or clinics, an increase of 92 in the year. Our installed base in translational and clinical sites rose by 36 to 185 clinics.

Increased sales were seen across the entire dEEG product range, with average system prices in the second half of the year higher than seen in the first half. North American sales were $5.4m (2013: $5.6m) with US sales slightly ahead of the prior year but with a reduction in Canadian orders. International sales were strong with Europe contributing revenues of $4.6m (2013: $3.5m) and Asia $2.9m (2013: $1.9m).

The Company's cash reserves as at 31 December 2014 were approximately $1.2m. In addition, the Company has an undrawn $1.25m bank credit line secured on the assets of the business and which currently expires on 31 March 2015.

Don Tucker, CEO of EGI, commented: "We are pleased to have delivered good double digit growth for the year and to make a solid start to 2015 with continued strong order visibility and improved grant funding. Over the coming months, we will release a series of new and improved diagnostic and imaging products for the research and clinical markets which we expect to drive further growth. Moreover, we continue to believe that the GTEN opportunity offers EGI access to the large and rapidly growing neuromodulation market, initially as a driver of research sales and later as an important clinical tool. We are refining our financing proposal and will update the market in the coming weeks."

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Notes to Editors

Electrical Geodesics, Inc. in Summary

Founded in 1992, EGI designs, develops and commercialises a range of non-invasive neurodiagnostic and neuromodulation products used to monitor, interpret and modulate brain activity, based on its proprietary dense array electroencephalography ("dEEG") platform technology. The Company's technology uses up to 256 sensors, providing much higher resolution brain activity data compared to conventional 8 or 16 channel EEG and is used in medical, clinical and research settings in a diverse range of applications including important areas such as the diagnosis and monitoring of epilepsy, neurosurgical planning, sleep assessment, and many others.

EGI's dEEG systems, available in the GES 300 and now the GES 400 lines, capitalise on the Company's unique Hydrocel Geodesic Sensor Net which allows faster, easier, and more convenient placement of many EEG sensors in an even distribution over the entire scalp, providing more accurate and precise diagnosis and measurement. EGI's technology is now widely used in neuroscience research laboratories and is becoming more commonly used in clinics, care centers, and hospitals around the world. Data is measured and visualised using EGI's proprietary amplifier technology and software, providing a complete, advanced, high-resolution EEG platform. The Company's products are compatible with multiple diagnostic and imaging technologies, including magnetic resonance (MR) imaging, functional MRI (fMRI), and magneto-encephalography (MEG).

See our website www.egi.com

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