AGM Stmnt and trading update

Flomerics Group PLC
23 May 2007


Flomerics Group PLC


AGM Statement and Trading Update


At its Annual General Meeting to be held later today, David Mann, Chairman of
Flomerics Group PLC, the global supplier of specialist design and simulation
software for electronics and fluid flow simulation, will make the following
statement on the Group's continuing progress:



"As stated in the Annual Report for the year ended 31 December 2006, the
acquisition of NIKA has resulted in a step-change in the Group's potential and
ambitions. In order to take maximum benefit from the new portfolio of products
brought into the company, we have, as previously indicated, invested in
additional sales staff, especially in the UK and the USA."



"The acquisition of NIKA is beginning to yield benefits. We have made good
progress in integrating the technologies of the two companies and are on track
to release later this year the first version of the EFD family of products
specifically targeted at the electronics industry.  We have achieved a number of
cross selling successes and been able to make sales into accounts in the
electronics industry for applications where our market leading FLOTHERM product
would have been less suitable. If we look at the business on a world-wide basis,
we are pleased with the increased level of sales activity and the rate at which
we are able to build a pipeline of business."



"Trading in the first four months of this year in Europe and Asia-Pacific region
has been in line with expectations.  We are in particular delighted with
progress in Germany, where the former NIKA and Flomerics teams have integrated
well and have continued the sales success shown by NIKA in this region during
2006."



"The recent recruitment program in the US is now complete and prospects for the
North American business remain encouraging. However, sales performance in this
region has been below expectations with the process of hiring specialised sales
people of the right calibre taking longer than was planned.  Delays in getting
the integrated team in place, trained, and building solid pipelines are expected
to result in reduced growth in US revenues and profits compared with budgets
established at the beginning of the year. In addition, any continued
strengthening of Sterling, particularly against the US dollar, will affect
contributions from North America. The Directors expect that these factors will
have a significant adverse impact on the Group's results for this year."



"The company is taking action to reduce the effect of the delays in the US on
profits whilst being careful not to disturb the momentum that is being built in
our sales pipeline. Overall, the Board remains confident that the Group will
make significant progress this year."



Contacts:


Flomerics Group PLC:
Gary Carter                   Chief Executive                020 8847 3000
Chris Ogle                    Finance Director               020 8847 3000


Conduit PR:
Charlie Geller                                               020 7429 6666


Oriel Securities Limited (Nominated Adviser):
Andrew Edwards                                               020 7710 7600




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