Escher Group Holdings Regulatory News (ESCH)

6 December 2012

Escher Group Holdings plc

("Escher" or "the Group")

Trading Update

Escher, a world leading provider of outsourced point-of-service software to the postal industry, announces that further to today's announcement of the Group's contract win, the Board expects revenue for the year ended 31 December 2012 to be materially ahead of market expectations. As previously announced at our half year trading update on 6 August 2012 and reiterated on 24 September 2012 at our interim results, the period was marked by increased levels of investment. As a result, EBITDA for the year ended 31 December 2012 is expected to be in line with market expectations.

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Notes to Editors

Escher is a world leading developer and provider of outsourced, point of service software for use in the postal industry worldwide. Its core software, RiposteEssential, enables post offices to expand upon their traditional offering, providing additional new services, reducing costs and increasing efficiency.  Riposte is a messaging middleware that enables applications operating on different computers to communicate with each other. The Riposte software manages data, monitors the system status and communicates across the network. Escher operates across two divisions - its Retail Software Division and its Message Based Communications Division.

The Retail Software Solution (RiposteEssential) serves the postal and courier markets. Transactions include mail and financial services and the system is integrated with utilities and financial services companies, banks and central and local governments.

Escher's Message Based Communications Division (RiposteTrEx) is based on a digital post office box model and is designed to provide a national digital infrastructure linking governments, businesses and citizens via a secure platform.