EGM Statement

14 Jun 2007 15:06

Image Scan Holdings PLC14 June 2007 14 June 2007 IMAGE SCAN HOLDINGS PLC ("Image Scan" or the "Company") EGM STATEMENT The Board of Image Scan, a leader in the field of real-time 3D and 2D x-rayimaging for the 'Homeland Security' and 'Industrial Inspection' markets,announces that at the Company's Extraordinary General Meeting (EGM) held earliertoday, all resolutions set out in the Circular to Shareholders were duly passed. Peter Woods, Chairman, provided the following statement: "The Board would like to thank our Shareholders for their support in relation to the Placing. As stated, the funds raised will be used to further invest in product development to improve the Company's competitive position; expand sales, marketing and distribution to manage the strong pipeline of potential customers and secure additional orders; strengthen resources to better serve customers; repay loan stock; provide the necessary working capital for continued growth; and assess possible strategic acquisitions. Before I address the formal business of today's meeting, I would like to take this opportunity to comment on behalf of the Board on both the progress made to date, and the positive outlook that lies ahead. As Shareholders of Image Scan you will already be aware of the strong progressmade to date in growth of our technology, the Company's product range and highquality blue chip customer portfolio. The Interim financial statements showedcontinued improvement with turnover increased by 50% to £1.1m, gross marginsstrengthened to 50% and the loss for the period down to £60,000. At the periodend, prospects for the Company were strong with the order book at £945,000. Aspreviously stated, since the period close we have seen new orders for ourService Division, in respect of installed equipment in the USA, and continuingprogress on current contracts and development of our sales pipeline. With your Board focused on driving the business into profitability, it plans totackle the following key areas of opportunity: •Quicken the pace of technology development, in order to protect and increase the Company's position, value and growth. Your company's strength lies in its advanced technology, and the Board plans to capitalise more on this strong marketing advantage; •Seek to reduce costs further, strengthen our strong market position and support even higher profit margins, through rationalisation of products; •Continue to target blue chip customers to provide further revenue and profit growth. The Board will also look to refine processes to improve efficiency and speed up responses to current and new customers; •Look to hasten the widening and strengthening of Image Scan's product offering and distribution, in order to provide a more continuous level of steady sales to smooth out the peaks and troughs in the sales cycle; and •Continue to change and strengthen the Company's internal organisation to support these objectives. The key to future growth lies in the protection of the Company's workingcapital. The Board will seek to now concentrate on essential long term needs, aswell as that of the immediate future; assess strategic acquisition options thatmight accelerate growth and earnings; and develop and enhance Image Scan'stechnology offering. The Board remains confident about the long term future of Image Scan. It remainsfocused on driving shareholder value, and intends to accelerate and furtherdevelop opportunities already created." --ENDS-- For further information, please contact: Image Scan Holdings plc Tel: +44 (0) 1664 503 600Peter Woods, ChairmanNicholas Fox, CEOinfo@ish.co.uk Bishopsgate Communications Ltd Tel: +44 (0) 207 562 3350Dominic BarrettoJenni Herbert Seymour Pierce Tel: +44 (0) 207 107 8008Sarah JacobsDavid Newton About Image Scan Holdings plc Image Scan Holdings plc (AIM: IGE) is focused on the development andcommercialisation of market leading real-time 3D and 2D x-ray solutions for usein the global industrial and security inspection markets. The company'sindustrial inspection solutions include the MDXi unit and the X-Line systems.The security portfolio includes a unique 3D baggage inspection system forcorporate and airport security and TPXi, a portable bomb and suspect packagedetection system. Current Technology Portfolio The Company's portfolio currently comprises of the following x-ray inspectionsystems: Axis-3d(R); X-Line; MDXi-400TM; TPXi-675TM; and the DEXTM x-ray visionengine for OEM applications. For further information on the Company, please visit: www.ish.co.uk - and forfurther information on its products, please visit: www.3dx-ray.com. This information is provided by RNS The company news service from the London Stock Exchange