Share Placing/Trading update

Image Scan Holdings PLC
21 May 2007


                                                              21 May 2007

                            Image Scan Holdings plc
                        ('Image Scan' or 'the Company')
                                    (AIM:IGE)
                                        
          Placing of 20 million new ordinary shares to raise £3 million
                                        &
                                  Trading Update


The Board of Image Scan announces today it has raised £3 million before expenses
via a placing of 20,000,000 new Ordinary Shares of 1p each (the 'Placing') at a
price of 15p per share. The funds will be used for working capital and to
accelerate the growth of the Company.

Image Scan's core business 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 homeland security inspection markets. The 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.

The Company's portfolio of clients over the last year have included 'blue chip'
names such as Johnson Matthey, British Nuclear Group, British Transport Police,
Rapiscan Systems Ltd, Crown Cork & Seal, a Johnson & Johnson company and the
Transport Security Administration.

Use of Proceeds

The funds raised from the Placing will be used to:

-        Invest in product development to further 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;

-        Provide the necessary working capital for continued growth; and

-        Assess possible strategic acquisitions.


Placement Details

The Placing is conditional upon shareholder approval at an Extraordinary General
Meeting (the 'EGM'), which has been convened to be held on 14 June 2007. Subject
to the passing of the relevant resolutions at the EGM, the Company will apply
for the Placing Shares, which will rank pari passu with the existing ordinary
shares, to be admitted to trading on AIM and expects that admission will occur
on 15 June 2007. Following the allotment, the total issued share capital of the
Company will increase to 54,948,120 ordinary shares.

Copies of the circular and notice convening the EGM have been despatched to
shareholders and are available from the offices of the Company at Pera
Innovation Park, Nottingham Road, Melton Mowbray, Leicestershire, LE13 0PB.

Members of the Company's management, staff and immediate families will be
participating in the placing, including 4 directors of the Company whose
dealings are as follows:

Director             Existing   Shares acquired   Total shares  Total % holding
                      holding
Nicholas Fox      2,485,121            46,667      2,531,788               4.6%
Louise George       100,000            48,000        148,000               0.3%
Robin Higgons             -            73,333         73,333               0.1%
Peter Woods       1,420,571           166,667      1,587,238               2.9%


Update on Trading

The Company has released its interim statement for the 6 months to 31 March
2007. The Interim financial statements show continued improvement with turnover
increased by 50% to £1.1m, gross margins strengthened to 50% and the loss for
the period down to £60,000. At the period end prospects for the Company were
strong with the order book at £945,000. Since the period close we have seen new
orders for our Service Division, in respect of installed equipment in the USA,
and continue to see excellent progress on current contracts and development of
our sales pipeline.

Commenting on the Placing, Nicholas Fox, Image Scan's CEO, said:

'The result of this placing will provide the Company with the necessary
resources and working capital to optimise the opportunities we have created and
accelerate future growth.

Over the last few years the Company has worked hard to consolidate its
technology into a viable product portfolio to satisfy market needs. This effort
has been strongly validated through our success in marketing these systems to
'blue chip' customers, providing us with a strong base from which we can now
rapidly expand.'

Enquiries:

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

Seymour Pierce Limited
David Newton                                           Tel: [phone]
[e-mail]

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





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