Current Trading Update

DAT Group PLC 25 July 2005 Embargoed until 0702h 25 July 2005 DAT Group plc ('DAT' or the 'Group') Trading Update London, 25 July 2005 - This announcement is the clarification of the Group's recent trading update which was released on 21 July 2005. It provides further information regarding DAT's financial position, future trading prospects and expected financial performance for the full year to 31 December 2005. The Board expects that the Group's sales for the financial year ending 31 December 2005 will be in a range between £3 million and £4.5 million, compared to what the Board believes to be current market estimates of approximately £7 million. The Board does not expect DAT to be profitable in 2005. The Board is confident that the Group's financial resources are sufficient for its present requirements. Despite a strong portfolio of leading technology, a robust client base and good customer references, the Group has so far failed to convert a material proportion of its sales pipeline into confirmed and invoiced orders. The Board believes that this limited success is due to the following key factors: •The Group's product range is currently too broad, which has resulted in a lack of sales focus; •The Group has launched services in the market without ensuring that there are sufficient reseller channels in place to sell effectively to end-consumers; and •The Group has put in place inadequate mechanisms for monitoring sales cycles and evaluating sales performance. However, the Directors are confident that Group's growing, blue chip customer base demonstrates the robustness and resilience of DAT's product offerings which focus on device management and data synchronization. The Board has commissioned a major internal review of DAT's product portfolio and sales operations which is already underway. The Board believes that, as a result of the review, the Group may elect to reduce the range of products currently being offered to customers in order to enable DAT's sales and marketing teams to focus on those products which the Group believes have the greatest potential. In addition, the Group will also re-examine its existing product development processes. Going forward, the services, technologies and products of Synchronica Software, acquired in April 2005, will significantly strengthen the Group's product offering. Together, DAT and Synchronica offer a complete solution for device management and data synchronization with a valuable IP portfolio in place resulting from many man-years of development. The technologies allow DAT to provide both device management solutions and synchronization products in response to the growing demand for personal information management (PIM) and e-mail synchronization and advanced mobile device management as the market share of smartphones and SyncML-enabled phones continues to rise. The Group expects to announce its interim results for the period ending 30 June 2005 towards the end of September, when it will provide a further update as to the progress of the operational review and the selection of a new chief executive officer. Enquiries: Nicole Meissner, CMO Simon Hudson / Christian Taylor-Wilkinson DAT Group PLC Tavistock Communications Office: +49 30 616 75 650 Tel: +44 20 7920 3150 Mobile: +49 173 606 91 60 About DAT Group plc DAT Group plc focuses on management solutions for mobile operators, device manufacturers, retailers and corporations. The company offers a varied product portfolio ranging from data synchronization (DS) to device management (DM), firmware updates over-the-air (FOTA) and mobile device management (Enterprise Assistant). DAT has unique expertise in smart devices across all platforms based on its market-leading over-the-air (OTA) delivery platform. Based in the UK, the company also has offices in Germany and the U.S. DAT is a public company listed on the London Stock Exchange. More information about DAT is available at www.datgroup.com About Synchronica Synchronica focuses on SyncML synchronization and device management solutions for mobile operators, device manufacturers, and corporations. The company offers a complete SyncML product portfolio ranging from data synchronization (DS) to device management (DM) and firmware update over-the-air (FOTA). Synchronica has a strong track record in the SyncML space, including the launch of the world's first SyncML DM FOTA server with a leading European device manufacturer. The Synchronica SyncML Gateway provides over-the-air synchronization of SyncML-enabled mobile phones with corporate Microsoft Exchange servers. More information is available at www.synchronica.com This information is provided by RNS The company news service from the London Stock Exchange
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