Trading Statement

23 June 2011

cScape Group Plc ("cScape" or "the Group")

Trading Update

The Group announced in its interim results for the six months ended 31 December 2010 that it had made a pre tax profit of £65,000 for the period with both cScape Strategic Internet Services ("CSIS") and Blue Sky Hosting having contributed to the profit.

In his statement, Keith Young, Executive Chairman, noted that the Board of cScape expected Blue Sky Hosting to continue to deliver positive results in the second half of the financial year but that the prospect for the CSIS side of the business was more challenging as clients have been generally very cautious about spending, leading to a reduction in the value of individual projects.

The effect of this has been a material negative impact on the Group's results for the year ending 30 June 2011.

Blue Sky Hosting, however, has continued to perform as anticipated.

For further information, please contact:

Smith & Williamson Corporate Finance Limited Tel: 020 7131 4000

Azhic Basirov / Siobhan Sergeant