LBB.L Regulatory News (LBB)

Ila Group Limited

("Ila" or "the Company")

Trading update

·; Full year sales expected to beat expectations

·; Integration of Premium Factory into ILA more successful than anticipated

·; Sales growth expected to be stronger than previously predicted

·; Expected to reach breakeven earlier than management forecast

Ila (AIM: ILA), the UK based specialist international marketing and distribution organisation, is pleased to announce that sales for the year ending 30 June 2011 are expected to be ahead of expectations. Due to the rapid success and market penetration of the brand, Ila's range of fashionable security products now sell in over 30 countries, including recently announced deals in Norway, Austria and Germany. Sales also commenced in North America during the financial year.

In addition to the core brand, the integration of Premium Factory into Ila has been significantly more successful than first anticipated. Premium Factory, acquired in March 2011, develops and manufactures promotional items for multi-nationals such as Nestle and Unilever. It has also developed a range of children's products sold through major retailers, such as Asda and Sports Direct. A number of new product ranges are expected to be launched this year, and Ila is seeing some recovery in Premium Factory's markets.

Ila has rapidly built a set of core competencies in the key logistical areas of design, sourcing, manufacturing, distributions and sales. The company has been approached by manufacturers and distributors to discuss new products and brands and this may include ranges under license in partnership with major international brands. These opportunities will be vigorously pursued.

Following extensivemarket research, in conjunction with shareholder and advertising agency BBH, Ila is on track to launch its new 'Scootrix' brand of children's products in late 2011. There is strong early interest from retailers.

As a result of these developments, Ila expects sales growth for the following 12 months to be significantly stronger than previously forecast. As a consequence, the company expects to reach breakeven earlier than predicted.

Simon McGivern, CEO of Ila, commented: "The integration of Premium Factory into the Ila structure has gone significantly better than anticipated. This has led to a number of sales opportunities, including new products and geographic markets. As a result, we continue to seek additional acquisitions that will fit into our manufacturing and distribution model. Ila's original product portfolio continues to sell well in existing markets and we continue to access new markets.

The Board is very encouraged by the rapid development the company has made and is determined to continue this momentum in the future."

For further information please contact:

FinnCap 020 7600 1658

Charles Cunningham/Ben Thompson - Corporate Finance

Joanna Weaving - Corporate Broking

Lothbury Financial Services 020 7868 2010

Gary Middleton

Simon Astley

Notes to Editors':

Ila Group in the first half of 2011 has revealed orders out of Europe of US$795,000, one of which was a re-order from Norway.

Earlier in the year the distribution group also announced that first half sales shot up by 375% to £646,995 and that retail guru, Gordon Black of Peter Black Holdings fame had been appointed as a corporate advisor.

In the first quarter of 2011, ila revealed the acquisition of Premium Factory, giving the group access to new retiailers, countries and product opportunities, both domestic and international.