Distribution Agreement

23 June 2016

IMAGE SCAN HOLDINGS PLC

("Image Scan" or the "Company")

(AIM: IGE)

Distribution agreement for mail scanning systems - first orders

Image Scan, the AIM-listed specialist supplier of X-ray screening systems to the security and industrial inspection markets, is pleased to announce that it has signed a distribution agreement for X-ray mail scanning systems with Todd Research, a leading manufacturer in the market. Furthermore, two orders totaling six systems have now been received.

Under the agreement Image Scan will make use of its well developed and extensive global reach into the security market to find new customers for the Todd Research range of mail and security scanning systems. These systems are widely used to perform X-ray inspection of incoming mail and packages in embassies and other government buildings, as well as company headquarters and industrial facilities. Typical threats that have been encountered through the mail include letter or parcel bombs and powder based attacks. Advance image enhancement tools provide high detection performance against such threats.

Todd Research is a leading company in this market with an installed base of over 600 systems.

In early wins for the new partnership, Image Scan can announce orders from Africa and Asia in the form of six units of the MailScan-M model, the mid-size cabinet scanner, to customers in these important markets.

Bill Mawer, Chairman and CEO of Image Scan, said: "I am delighted to be able to announce this important new agreement. Our sales team and the global network of partners give the Company exceptional reach and this agreement expands the product range that can feed through this extensive route to market."

Derek Gotts, MD of Todd Research said "We are pleased to have completed this agreement which is mutually beneficial and look forward to developing further new sales in a variety of territories as a result of this extended reach capability Image Scan deliver."

-ENDS-

For further information, please contact:

Image Scan Holdings plc Tel: +44 (0) 1509 817400

William Mawer, Chairman

Sarah Atwell-King, Company Secretary

ir@ish.co.uk

Cantor Fitzgerald Europe Tel: +44 (0) 207 894 7000

Rick Thompson / David Foreman / Michael Reynolds (Corporate Finance)

David Banks / Alex Pollen (Sales)

Todd Research, part of Supply Plus Limited Tel: +44 (0) 1480 832202

Derek Gotts, Managing Director

Derek.gotts@supplyplus.com

About Image Scan Holdings plc

Image Scan Holdings plc (AIM: IGE) is focused on the development and commercialisation of market leading real-time X-ray solutions for use in the global Security and Industrial inspection markets. The Company's Security portfolio includes the ThreatScan® range of portable bomb and suspect package detection systems; the Axis range of baggage inspection systems; and SVXi, a small vehicle inspection system. The Industrial inspection solutions include the MDXi product range, cabinet X-ray systems for laboratories and production lines. The Company was founded in 1996 and joined AIM in 2002.

For further information on the Company, please visit: www.ish.co.uk - and for further information on its products, please visit: www.3dx-ray.com

About Todd Research

Todd Research is part of the Supply Plus Group of companies focused on safety and security. Our customers range from Embassies around the world to many of the FTSE top 100 companies. We have been manufacturing X-ray equipment for over 60 years and developed the worlds' first X-ray scanner, designed specifically for mailroom security. We have continued to develop our mailroom threat detection products to face challenges from terrorists and suspect packages alike.

Our knowledge of mailroom security enables our customers to protect themselves from powder threats, bomb threats and suspect devices. Even hoax devices can disable an organisation causing significant losses in revenue.

For further product information please visit www.toddresearch.co.uk or www.supplyplus.com