IND.L Regulatory News (IND)

INDIGOVISION GROUP PLC

("Indigovision" or the "company")

Trading update and comment on market forecasts

At the recent AGM, the board of Indigovision reported that the company had made an encouraging start to the current year, and that the early part of the year had seen a return to satisfactory levels of profitability on sales similar to the previous year.

Indigovision is pleased to be able to report that this early encouraging progress has continued. The operating result for the first four months of the current year has been excellent. In particular, gross margins have recovered sharply from the levels experienced in the second half of last year. Year to date gross margins have been stronger than the corresponding period last year, some 3 points higher than last year's average, and 5 points higher than last year's disappointing second half. In addition, overheads for the year to date are materially below the corresponding period last year.

Indigovision is highly operationally geared, and the combination of higher gross margins and lower costs in the year to date has meant an operating performance significantly higher than the corresponding period last year, and materially ahead of the same period in any earlier year. It is in the nature of Indigovision's business that it operates on a relatively short forward order book, therefore this very strong start to the year does not necessarily mean that the group will return to record levels of performance for the year as a whole. It is clear, however, that the poor performance reported for last year's second half has been quickly reversed by strong management focus on margins and costs. Looking forward, there is every reason to be confident that the better year on year margin and cost performance should continue, and encouragingly for sales, the new product pipeline is looking better than for some time.

Accordingly, based on the sharp recovery in gross margins and close control of costs, published market forecasts seriously understate the potential operating performance for the current year.

Enquiries: 25 November 2011