KBC.L Regulatory News (KBC)

24 July 2012

KBC Advanced Technologies plc

("KBC" or "the Group")

Trading Update

 and

Confirmation of Board Changes

KBC is pleased to announce the following trading update in relation to the half year results for the six months ended 30 June 2012 that will be released in late September.

Since our AGM statement the Group has continued to make progress and we remain confident that results for the year will be in line with the Board's expectations. Trading continues to be positive across most of Asia, Russia and the Americas but is weaker in some parts of Europe, in response to which we are taking steps to reduce costs in the region and to rebalance resources across the Group. The Latin American software user referred to in our AGM statement in May is now looking to extend the licence period from three to five years, increasing the agreement's value to circa £4m. As a consequence negotiations are now expected to close in the second half, with circa £2m being recognised as a licence fee in the period, increasing the weighting of the Group's performance this year towards the second half.

Contract awards for the first six months of the year were around £17.0m for the first half of 2012 (H1 2011: £23.5m) and the pipeline of opportunities remains strong for the second half. The order book is expected to be around £39.0m at 30 June, compared to £48.7m at the end of 2011, as we continue to successfully work through the backlog associated with the Pemex project.

The acquisition and integration of Infochem has been very successful and our expectations for the value that this business will add to KBC continue to grow. The response from both KBC's and Infochem's clients has been consistently positive and we have been encouraged by their willingness to explore how the combination can enhance both KBC and Infochem's software offerings and strengthen the overall relationship.

Board Changes

Following the announcement in May that Nicholas Stone had decided that he would like to seek fresh challenges, Mr Stone will step down as a director and leave the business on 31 July 2012. Having worked with the business since 2001 as Finance Director, and as Operations and Finance Director since 2006, Nick has been a key contributor to the development of KBC and the Board would like to thank him for his input over the last 11 years.

The Board is pleased to announce that Caroline Brown will be appointed Finance Director of KBC and will take up office in the early Autumn. Ms Brown is an experienced public company director with over 12 years' experience managing global finance functions in the resources sector, including Petrofac and Gulf Keystone Petroleum. She is a qualified accountant, holds an MBA and is a Chartered Director. An announcement will be made in due course confirming her appointment date.

-Ends-

About KBC

KBC is a leading consultancy and software provider to the global energy, process and natural resources sectors. With over 30 years of experience, operating out of 14 global locations, KBC combines best-in-class software with experienced engineers and operations personnel using robust methodologies to create world class solutions for its clients.

For more information, visit www.kbcat.com