Pebble Beach Regulatory News (PEB)

6 July 2016

Vislink plc

(the "Company" or the "Group")

Trading Update

Vislink Group plc, the global technology business specialising in solutions for the capture, management and delivery of high quality video for the broadcast and surveillance and public safety markets, announces the following update for the period from 1 January to 30 June 2016.

In the software division Pebble Beach Systems ("PBS") there was slower order intake in Q2, however we expect a stronger Q3 for order intake as decisions have slipped from Q2 to Q3. The activity levels are strong both direct with customers, prospects and through our partnership with Harmonic. It is expected the division will meet management expectations for the full year. With its extensive global customer base and highly regarded broadcast solutions, the long term growth for PBS remains strong.

Sales in Vislink Communication Systems ("VCS") were below management expectations.

As part of our strategy to transition to a software and services business, the Company has explored a number of options to improve shareholder value in relation to VCS. As a result of this exercise the Board has now initiated a major root and branch restructuring of the business to ensure its brands maintain their market leading position as the industry continues at pace to transition to IP solutions.

This restructuring includes a non-cash write-off which could be between £6 - £9 million of increasingly inappropriate legacy technology. In addition, it will result in a more focused range of products that are appropriate for today's market, a further reduction in costs of £1 - 2 million annualised, and a clear focus on improving asset management and cash generation of the division.

We intend to further consolidate our engineering and manufacturing base but will continue to maintain investment in new IP (digital) products. The Group will continue to consider a number of options for the development of the VCS division.

As the lower than expected trading performance of VCS in H1 is expected to continue into H2, the Board believes that the financial performance of the Group for the full year will be materially below previous estimates.

As trading has been lower than expected, the Company's bank has agreed to defer covenant tests until the end of July from the end of June and remains supportive of the Company.

The Group remains focused on transitioning to a software and services business, represented by increasing visibility of revenues and accordingly will continue to invest in PBS to deliver organic growth whilst growing our software division through acquisitions.

The Board intends to review the Company's dividend policy in light of the intended restructuring, with further information to be provided in relation to dividends in the Company's half year results.

Enquiries:

Vislink plc: John Hawkins, Executive Chairman+44 (0)1488 685500

Vislink plc: Ian Davies, Finance Director+44 (0)1488 685500

N+1 Singer: Shaun Dobson / James White+44 (0)20 7496 3000

Hudson Sandler: Charlie Jack / Bertie Berger+44 (0)207 796 4133

About Vislink plc

Vislink plc is a leading global software and technology business specialising in solutions for the live collection, delivery and playout automation of high quality video 'from scene to screen'.

For the broadcast markets, Vislink provides wireless communication solutions for the collection of live news, sport and entertainment as well as software solutions for channel playout automation, channel-in-a-box and video content management. Vislink also provides secure video communications for surveillance and public safety applications such as law enforcement and homeland security.

Vislink employs over 250 people worldwide with offices in the UK, USA, UAE and Singapore and manufacturing operations in the UK and the USA. Vislink has net assets of over £54 million and continues to invest in innovation. The Company is listed on the AIM Market of the London Stock Exchange. For further information, visit www.vislinkplc.com.

Forward-looking statements

Certain statements in this announcement are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. The Group undertakes no obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. Nothing in this announcement should be construed as a profit forecast.