SDI Group Regulatory News (SDI)

Scientific Digital Imaging plc

("SDI", the "Company" or the "Group")

(AIM: SDI)

Acquisition of Fistreem International Limited

The Board of Scientific Digital Imaging plc, the AIM quoted group focused on the design and manufacture of scientific products for use in applications including life science, healthcare, astronomy, consumer manufacturing and art conservation, is pleased to announce the acquisition of Fistreem International Limited ("Fistreem") for a total consideration of £756,000 (the "Acquisition").

Highlights:

· Fistreem designs and manufactures water purification products and vacuum ovens.

· For the year ended 31 August 2017, Fistreem achieved revenue of £645,000, gross profit of £356,000 and profit before tax of £221,000.

· The Acquisition is in line with the Group's strategy of acquiring complementary businesses and the Board has identified areas within Fistreem with potential for growth.

Ken Ford, Chairman of SDI said:

"Fistreem is a small but important step in our Group acquisition strategy. Fistreem is another business that fits into the Group and its brands. The acquisition is in line with our previously announced acquisition strategy and is expected to be earnings enhancing in its first full year of ownership."

About Fistreem International Limited

Fistreem was incorporated in May 2004 when Fistreem purchased the water purification business and vacuum oven business from Sanyo Gallenkamp Plc. Fistreem has 4 members of staff who all worked at Sanyo Gallenkamp Plc prior to the divestment, as a result they each have many years of Fistreem product experience.

Fistreem's principle two activities are:

1. The manufacture of water purification products and brands including Cyclon Water Still, Calypso brand water stills, AquaRec UV Water Re-circulation System and a range of deionisers and filters under the Fistreem Puri-Fi brand; and

2. The manufacture of a vacuum oven under the Fistreem brand.

For the year ended 31 August 2017, Fistreem achieved revenue of £645,000, gross profit of £356,000 and profit before tax of £221,000. In the year ended 31 August 2017, 61 per cent of sales were exported, USA being the highest revenue stream. Fistreem's products are sold to over 50 countries worldwide.

Acquisition Rationale

The Acquisition is in line with the Group's strategy of acquiring complementary businesses and the Board has identified areas within Fistreem with potential for growth.

Consideration for the Acquisition

The total consideration payable in is £756,000. SDI has funded the total consideration using its existing cash resources.

Enquiries

Scientific Digital Imaging plc 01223 727144

Ken Ford, Chairman

Mike Creedon, CEO

Jon Abell, CFO

www.scientificdigitalimaging.com

finnCap Ltd 020 7220 0500

Ed Frisby/Kate Bannatyne - Corporate Finance

Andrew Burdis - Corporate Broking

JW Communications 07818 430877

Julia Wilson - Investor & Public Relations

About SDI:

Scientific Digital Imaging plc designs and manufactures scientific and technology products for use in applications including life sciences, healthcare, astronomy, consumer manufacturing and art conservation through the Synoptics brands (Syngene, Synbiosis, and Synoptics Health), the Atik brands (Atik Cameras, Opus Instruments and QSI), Sentek, Astles Control Systems and Applied Thermal Control. SDI intends to continue to grow through its own technology advancements as well as strategic, complementary acquisitions.

No statement in this announcement is intended to be a profit forecast or estimate and no statement in this announcement should be interpreted to mean that earnings per share of the Company for the current or future financial years would necessarily match or exceed the historical published earnings per share of the Company.

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.