Image Scan Holdings Regulatory News (IGE)

08 October 2010

Image Scan Holdings plc

("Image Scan" or "the Company")

TRADING UPDATE

The Board of Image Scan, specialists in the field of real-time 3D and 2D x-ray imaging for the 'Homeland Security' and 'Industrial Inspection' markets, today provides shareholders with a trading update, highlighting the trading position of the Company for the year ending 30 September 2010.

The Board anticipates turnover for the year ended 30 September 2010 at £1.5 million (2009: £1.4 million). Sales of security equipment continue to grow based on a more than two-fold increase in demand for the FlatScan portable x-ray scanning system emerging from a wide range of end users.

Taking advantage of the recent significant reduction in component costs for 3D computing, the Company has invested in the redesign of the Axis baggage screening system resulting in highly competitive 3D and 2D versions of the Axis product range. A sale into the Middle East has already been secured on the back of this revised costing and pricing model.

Industrial revenue represents 16% of total revenue and results from software development, consultancy, spares and support activities. Demand for new equipment sales is still at a very low level, although the Company continues to pursue high value industrial opportunities.

The shift in sales mix from industrial to security over the past two years has seen the nature of orders change from large one-off contracts delivered over a long period of time towards a greater quantity of lower value orders which are delivered from stock. The year end cash balance of £347,000 (2009: £850,000) reflects the necessary investment in stock to support the prompt turnaround of sales, and the order book of £95,000 represents ongoing service, support and spares contracts.

Image Scan's CEO, Louise George, commented, "Through the expansion of the sales team with the appointment of a UK sales manager, better territory management and the revamping of the website and other marketing materials, it is evident that the awareness of the Company and its products has increased. As a result we are tendering on a greater number of contracts both in the UK and overseas, and the feedback from end users has given fresh impetus to investment in the development of the product range. The introduction of new products to the Company's portfolio is expected to address wider market requirements and support sales growth in 2011."

-ENDS-

For further information, please contact:

Image Scan Holdings plc Tel: +44 (0) 1509 817400

Brian Emslie, Chairman

Louise George, CEO

info@ish.co.uk

Seymour Pierce Tel: +44 (0) 207 107 8000

Sarah Jacobs/John Cowie

About Image Scan Holdings plc

Image Scan Holdings plc (AIM: IGE) is focused on the development and commercialisation of market leading real-time 3D and 2D x-ray solutions for use in the global security and industrial inspection markets. The Company's security portfolio includes the Axis-3d® and Axis-2d baggage inspection systems for corporate and airport security; FlatScan-TPXi, a portable bomb and suspect package detection system; and SVXi, a small vehicle inspection system. The industrial inspection solutions include the MDXi and the DEX systems.

For further information on the Company, please visit: www.ish.co.uk - and for further information on its products, please visit: www.3dx-ray.com