Trading Update

Screen Technology Group plc 23 June 2006 For immediate release 23 June 2006 Screen Technology Group plc Trading update Screen Technology Group plc ("Screen Technology") wishes to update shareholders on current trading and prospects.. The Company's sales pipeline continues to be strong and at the recent exhibition at Infocomm in Orlando Florida in June, the ITrans product was very well received with extremely high levels of interest from end-users and distribution partners. Two parallel developments of modular ITrans products, one in-house and a second in conjunction with an OEM partner, are also now progressing and the first prototype modular ITrans products were shown at Infocomm. These modular products enable very large ITrans screens to be easily transported to customer sites in modular form and assembled in situ and the business expects these products to form a increasingly significant part of sales from early 2007. As previously stated, the key objective is now to increase the Company's production capacity. The issues encountered earlier in the year with production have been resolved and yields of ITrans display tiles have improved. The development of the high-speed production machines is continuing with each of the production stages within those machines working well. Our strategy during the year has been to concentrate on the production of demonstration units and we have been upgrading existing demonstrator stock with the latest in production quality to ensure that ITrans is shown to high-value end-users in the best possible light. The Board believes that this has been a successful strategy. The business in poised to increase production and sales in the second half of 2006. However the Board is mindful that production schedules and therefore sales by the end of 2006 depend critically upon timing and that even with high-speed production running at capacity by the end of the year, some sales previously expected this year are likely to move into early 2007. The unpredictability of production schedules over the next few months might also increase the time between production of tiles and the despatch of finished displays to customers. The sales forecast for 2006 was heavily dependent on the delivery of the new high speed production machines and on the sale of modular products. The timing of both of these has been affected by delays by third party suppliers that will have a consequential impact on sales for 2006. The Board's current expectations therefore are that sales for this year are likely to be significantly below current market expectations. However, the board is confident that by the start of 2007, high speed tile production will be well underway and modular products will also be in production, supplying a very strong order book. The board therefore believes that any effect on sales forecasts for 2007 will be small. Tom Jarman, Chief Executive said: "2006 will be a defining year for Screen Technology. By the end of the year we expect to have high speed production of ITrans, a technology that is unrivalled in a very large and growing international market. We expect to have proven the product and our pricing model with customers and to have increased our range of products with modular systems fully available in 2007." For further information please contact: Screen Technology Group plc www.screentechnology.com Tom Jarman, CEO 01223 559600 Simon Barton, Finance Director Isabel Podda, Buchanan Communications 020 7466 5001 Notes to Editor Screen Technology is the designer and manufacturer of revolutionary high-resolution large-screen displays designed for high ambient light environments. The high resolution and high definition of the Company's displays give a high-quality image suitable for advertising images and video as well as public information displays. They are visible at short viewing distances as well as across larger venues making them particularly suitable for large retail outlets, shopping malls, control rooms and transport concourses where customers might be within 10m of the display, a distance at which LED display technologies become unsuitable. The high brightness means that the displays are also easily visible in the kind of high ambient light environments where conventional LCD or plasma technologies become unusable. Screen Technology's patent protected technology uses moulded optical fibre tiles to produce seamless large displays using standard production LCD panels. The scaleable modular technology enables screen to be built in a wide variety of shapes and of theoretically unlimited size. Screen Technology Group plc listed on AIM, a market operated by the London Stock Exchange, on 1 August 2005. This information is provided by RNS The company news service from the London Stock Exchange

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