NETD.L Regulatory News (NETD)

NetDimensions (Holdings) Limited

("NetDimensions" or the "Company")

Pre-Close Trading Update

NetDimensions (AIM: NETD), a provider of performance, knowledge and learning management systems, provides a trading update following its 31 December 2010 financial year-end and ahead of entering its close period.

The Company reports that:

·; Revenue increased substantially during the year

·; The Board expects the revenue increase to be ahead of market expectations

·; Profit before tax is likely to come in substantially below expectation due to costs relating to the scaling up of existing teams, acquisitions and the settlement of a patent infringement claim in the United States

·; The Company maintains a healthy cash position at US$6.0 million and still has no debt

·; At 31 December 2010 rates, the cash position equates to 15.4p in cash per share

CEO Jay Shaw commented: "2010 was an eventful year for NetDimensions. We continued to grow revenue whilst investing heavily in the future of the business. Buying both BP-Tech, a U.S.-based sales and services company, and our reseller Intellego's distribution rights business in the UK, allowed us to put part of our cash to work and should provide a strong, exciting platform from which to take the Company forward in 2011, which we believe will increase our market footprint.

"In addition, settling the patent lawsuit will allow us to focus on growing the business rather than on litigation.

"We believe these moves, along with our recent Wholly Foreign Owned Enterprise license approval in China, will increase our potential to generate more revenue and improve profits in future."

NetDimensions will announce full-year results in April 2011.

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