SMRT.L Regulatory News (SMRT)

COMS PLC

('Coms' or 'the Company')

TRADING UPDATE

Following the Company's financial year-end of 31 January 2010, the Company would like to update shareholders on the current status of the business ahead of the publication of the report and accounts for the period which are expected by the end of June 2010.

The Company generated un-audited revenues for the period of £3.23m, an increase of 33% on the previous year. In addition, in line with the objectives set out in the interims, whilst the Company will still report a loss for the period, the Directors are pleased to report that, for the first time the Company was profitable in the month of January.

As outlined previously the directors implemented a number of operational changes throughout the year designed to achieve increased efficiencies amongst the operating businesses and focus the company on two core lines of business:

Coms - providing hosted internet telephony services direct to small and medium sized businesses (SMEs); and

VCOMM - providing solutions to enterprise customers through distributors and system integrators.

Based on data published by Illume in December 2009, it is estimated that Coms now has 5% of the hosted internet telephony market in the UK. Its re-branding has been completed and a new website is in place which reflects its focus on providing telephony and audio and conferencing services to SMEs.

Following a detailed review of the VCOMM business, new eCommerce systems have been implemented that integrate the CRM, warehouse, billing and distribution functions. This will enable VCOMM to support the targeted growth from its strategic partners which include Polycom, Digium and Extricom. VCOMM was awarded best EMEA distributor by Polycom and the VCOMM management team are seeking geographic expansion opportunities. The company expects to complete a re-branding during H1 2010.

The market for Internet telephony services continues to grow both in the UK and worldwide. The directors expect that emerging technology trends, such as Microsoft's Office Communications Server that integrates VoIP and Video Conferencing with Exchange Server, will continue to drive Internet Telephony further into the corporate market. The directors believe that both Coms and VCOMM are positioned to service this market with enabling technology and connectivity services.

"We are very pleased to have made progress in this difficult economic environment" says Jason Drummond, Coms plc Executive Chairman. "Companies are looking to reduce costs, and migrating to an Internet telephony system is an obvious cost saving for them. I remain very optimistic about the Company's future and look forward to providing a full review of the past year as well as the outlook for the current financial year shortly."

For further information, please see the Company's web site, www.coms.com, or contact:

Notes to editors:

Coms plc

Coms was founded by Jason Drummond in 2000 with the vision of enabling businesses to communicate by voice and video over the internet. Voice over IP (VoIP) is changing the way consumers and businesses communicate.

Coms offers a low-cost hosted communications service delivered over broadband. Coms customers can make high quality voice and video calls over the internet wherever a high-speed internet connection is available, including wireless hotspots, as they are allocated their own location-free unique user telephone number. Subscription is available in a range of packages.

Coms is an Ofcom authorised Public Electronic Communications Network (PECN) and a member of the Internet Telephony Service Providers Association (ITSPA).

Coms is listed on the London Stock Exchange AIM Market (LSE:COMS).