TNG.L Regulatory News (TNG)

Tangent Communications plc ("Tangent" or the "Company")

TRADING UPDATE

Tangent (AIM:TNG), announces a trading update for the six months to 28 August 2014.

Tangent generates the majority of its sales and profits from its Online business. However poor trading at our Agency, Tangent Snowball will see group profits in the first half below market expectations.

Group underlying operating profit for the year to 28 February 2015 is now expected to be comparable with the prior year. Net cash at year end is expected to be £2.5m.

Online sales are expected to grow by 10% to £8.7m with underlying operating profits comparable to the prior year.

· printed.com sales are expected to grow year on year by 30% to £3.6m. 2H sales will be higher again as we benefit from a bigger customer base and the August launch of photography.

· goodprint offers an additional route to the online market place to printed.com. Sales will be lower than the prior year but the new team now assembled has the right skill set to progress.

· Ravensworth continues to perform well with sales ahead of the prior year.

Agency sales are expected to decline by 20% to £4.5m with underlying operating profits £0.45m lower than the prior year.

· Tangent Snowball revenues were affected by budget cuts from two key clients, and the previously announced divestment of operations in Australia. Headcount has been reduced, at a one off cost of £0.25m, and resources re-channelled into our online print businesses.

· Tangent Snowball has been downsized and is now a leaner and more agile business.

Overall our focus for the business remains to be generating more revenues online.

For further information, please contact:

Tangent Communications plc

Timothy Green - Chief Executive: 020 7462 6101

Canaccord Genuity Limited - Nominated adviser and broker

Bruce Garrow / Emma Gabriel: 020 7523 8350