Pre-close Trading Update

Image Scan Holdings PLC
13 September 2007

                                                               13 SEPTEMBER 2007



                            IMAGE SCAN HOLDINGS PLC

                        ('Image Scan' or 'the Company')



                            PRE-CLOSE TRADING UPDATE



The Board of Image Scan, a world leader in the field of real-time 3D and 2D
x-ray imaging for the 'Homeland Security' and 'Industrial Inspection' markets,
today provides shareholders with a pre-close Trading Update, highlighting the
current trading position of the Company for the year ending 30 September 2007.

The Board anticipates that turnover for the year ended 30 September 2007 will
exceed £1.5 million (2006: £1.4m).  The corresponding net loss is expected to be
around £0.6m (2006: £0.5m).

Despite confidence expressed by the Company in the interim statement and in the
EGM statement released in June 2007, the second half of the year has been
disappointing.  The conversion of orders has been slower than anticipated such
that the order book worth £1.7m at the start of the year fell to £945,000 by the
half year. This is forecast to fall further by the year end as some of the sales
expected have not materialised in the period under review and two significant
orders were lost.

Following the departure of the Sales and Marketing Director in July, Nick Fox
has taken on the responsibility for heading up the sales team. Since then the
Company has issued a significantly larger volume of quotations than in the
preceding 9 months of the year under review.

At the time of the fund-raising in June, the Company stated that it would
expand the sales and marketing function in order to respond better to market
needs and secure additional orders.  In line with this objective, the Company is
actively looking to appoint two further sales executives.  Internal
reorganisation of the service and applications teams has led to them becoming
more client-facing and has increased efficiencies.  It is anticipated that these
changes to the sales, service and applications groups will contribute to
providing a stronger platform for the conversion of existing sales leads into
orders.  The Board moreover is examining all aspects of its operations and will
continue to strengthen the position of the Company in the coming months.

Following the fund-raising in June 2007, the Company's cash balances at 30
September 2007 are expected to be £1.4m which will support the Company in
achieving its targets for 2008.

Nicholas Fox, CEO of Image Scan Holdings plc, commented: 'The scale of the
orders at the start of 2007 precluded us from pursuing and responding to
enquiries within appropriate timescales.  This has been reflected in the
disappointing second half.  Finding a resolution to increasing efficiencies is
something that we are addressing by strengthening and reorganising the internal
structure of the Company.  Image Scan continues to have a growing number of
sales prospects worldwide for our products and we remain confident of our
ability to generate good growth over the next twelve to eighteen months.'



                                   ---ends---



    The directors of the issuer accept responsibility for this announcement.



For further information, please contact:

Image Scan Holdings plc                             Tel: [phone]
Nicholas Fox, CEO
[e-mail]

Bishopsgate Communications Ltd                      Tel: [phone]
Dominic Barretto
Jenni Herbert

Seymour Pierce                                      Tel: [phone]
David Newton
Sarah Jacobs



About Image Scan Holdings plc

Image Scan Holdings plc (AIM: IGE) is focused on the development and
commercialisation of market leading real-time 3D and 2D x-ray solutions for use
in the global industrial and security inspection markets. The company's
industrial inspection solutions include the MDXi unit and the X-Line systems.
The security portfolio includes a unique 3D baggage inspection system for
corporate and airport security and TPXi, a portable bomb and suspect package
detection system.



Current Technology Portfolio

The Company's portfolio currently comprises of the following x-ray inspection
systems: Axis-3d(R); X-Line; MDXi-400(TM); TPXi-675(TM); and the DEX(TM)x-ray vision
engine for oem applications.

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.




                      This information is provided by RNS
            The company news service from the London Stock Exchange