Water Intel. Regulatory News (WATR)

29 Aug 2007 07:00

Qonnectis plc29 August 2007 For Immediate Release 29 August 2007 Qonnectis plc ("Qonnectis" or "the Company") Trading Update Following the recent financial year end, the Board of Qonnectis plc is pleasedto provide shareholders with an overview of trading in the period. The Company has continued to grow revenues substantially in comparison to theprevious financial year, thus maintaining Qonnectis' track record of significantsales growth year-on-year. Qonnectis recently announced the launch of Leakfrog, a new product formonitoring domestic water leakage developed in partnership with Thames Water.Shipping of final production Leakfrog units to Thames Water began in June andsubsequent field trials have proved highly successful, such that the Boardremains optimistic regarding the future take-up and growth of this new productrange. Turning to Qonnectis' Internet-based smart metering products and services,customers continue to roll out the core iStaq GSM data logging and myMeter webservice product ranges. Additional web site developments for Scottish Water havebeen completed, providing their customers with additional value-add services. Wehave seen repeat business from other customers, such as Aquavitae and a numberof the NHS Trusts, as they add more sites. Marketing campaigns, together with anexpanded sales resource, have borne fruit and a number of new customers usingQonnectis' technology to monitor energy and water efficiency have been acquired.These include Jardine Motors, Smith Bellerby, Crawley Borough Council, BuryMetropolitan Borough Council and AGA Rayburn. With energy and environmental concerns so high in global political and economicagendas, there has been a significant increase in interest in smart metering andenergy/water efficiency products from utilities internationally. Additionally,the recent UK Government Energy White Paper raises the potential for smartmetering to be introduced to all 22 million homes in the UK. In the watersector, the Department for Environment, Food and Rural Affairs ("Defra") earlierthis month announced plans to permit compulsory water metering in large parts ofthe UK. These trends are likely to generate significant contract opportunitiesand distribution partnerships for the Company going forward. To maximise these opportunities and thereby accelerate its growth, Qonnectis hasreached an agreement with Security Change Ltd whereby the latter has agreed toprovide the Company with a £250,000 secured convertible loan facility repayableby 31 January 2008. If not previously repaid, the loan may be converted at therequest of the loan holders at a price based on the market value of the shares. ### Editors' notes - About Qonnectis Qonnectis' patented technologies enable the analysis of remote meter data tofacilitate water leakage control, customer profiling, and energy and watermanagement efficiency. Its products are already being used by a wide range of UKand overseas utilities as well as large commercial and domestic users of energyor water. The iStaq family of products work by sending meter readings to Qonnectis' securedata centre via SMS text messaging over the GSM network. The data is thenaggregated and published online via utility-branded "myMeter" websites operatedby Qonnectis. The data can also be sent directly to utilities' billing systems.Customers can access real-time information via a web browser using the "myMeter"service. For more information, please visit www.qonnectis.com. ENQUIRIES: Qonnectis plc 01932 788299Michael Tapia, Chief Executive Officer HB Corporate 020 7510 8600Edward Hutton Bankside Consultants 020 7367 8888Sue Scott/Michael Padley ENDS This information is provided by RNS The company news service from the London Stock Exchange