First Day of Dealings on AIM

DAT Group PLC
14 December 2004



Embargoed until 08.00 a.m. 14 December 2004





                                 DAT GROUP PLC


First Day of Dealings on AIM


DAT Group PLC ('DAT' or 'the Company') the international developer and provider
of software solutions for the management of converged mobile devices today
announces the commencement of dealings of its ordinary shares on 'AIM'. The
stock market EPIC will be DA.


Durlacher Limited is acting as Nominated Adviser and Broker to the Company.


Placing Statistics:

Total number of new ordinary shares being placed                     6,153,846
Issue price per ordinary share                                       130 pence
Number of ordinary shares in issue immediately following            18,615,304
admission
Market capitalisation at the issue price                         £24.2 million
Gross proceeds of the placing of new ordinary shares              £6.0 million


David Hayes, Chief Executive DAT Group commented: 'The level of interest from
institutions wishing to participate in the IPO was exceptionally strong and I am
delighted that we have successfully completed an important chapter in the
Company's development. Investors recognise the potential growth for our
business, which is underpinned by world leading technology in a market that is
forecast to grow exponentially in the coming years. We have developed a
technology platform that is at the heart of a suite of products that make smart
and feature phones easier to design, manufacture, configure, sell, manage and
use. The number of phones with which our technology is compatible is expected to
rise to 341 million by the end of 2005.'


For further information, please visit www.datgroup.com or contact:

David Hayes            Grant Harrison           John West
Chief Executive        Jonathan Retter          Clemmie Carr
                       Marcus Jackson
DAT Group              Durlacher                Tavistock Communications
Tel: [phone]     Tel: [phone]       Tel: [phone]






Notes to Editors


Key information about DAT:


• Founded in 1996, DAT writes software that helps manufacturers,
network operators, retailers and enterprises to manufacture, sell and manage
data enabled mobile phones.

• DAT is an international developer and supplier of device enhancement
and management solutions for data enabled mobile phones. The Company supplies
its proprietary technology platform, the DAT Mobility Platform ('DMP'), to phone
manufacturers, network operators, retailers and enterprises. Key customers of
DAT include AT&T Wireless, Brightpoint, Dangaard Telecom, HTC Corporation,
Microsoft, MSN, Nextel, Orange, T-Mobile and Verizon Wireless.

• DAT is winning material contracts as a result of its main product DMP
which is a carrier grade service delivery platform for data enabled mobile
phones. Advantages of DMP are:

• versatility - DMP can be customised for manufacturers,
retailers and mobile operators by a simple re-design of a web-based interface;
and

• compatibility with all of the major phone systems -
Symbian, Microsoft and Palm OS.

• In 2005, due to the planned enhancement of DMP's technology and
anticipated growth in shipments of data enabled phones, DMP is expected to be
compatible with shipments of 341 million new phones.

• DAT's admission to AIM is expected to raise the profile of the
Company amongst the Company's trade partners and is expected to enhance its
ability to attract new customers.

• DAT will use the proceeds of the flotation to fund the ongoing
development of DMP, progress sales in EMEA and America and fund the Company's
general working capital requirements. DAT's primary object will be to sustain
market penetration as the pool of DMP compatible devices grows.


Reasons for flotation and use of proceeds


By way of the placing, the Company is raising £6 million, through the issue of
4,615,385 new ordinary shares of 1p each. The proceeds will be applied
principally as follows:

• to fund ongoing development of DMP in response to new device launches
and to maintain compatibility with future device management standards;

• to recruit new technical staff;

• to recruit key business personnel for an aggressive movement into
EMEA;

• to establish a Product Management and Marketing department;

• to establish a commercial and technical base in America to develop
existing accounts and prospect for new ones; and

• to fund general working capital requirements.


In addition to the fundraising, the reasons for the Admission include:

• to incentivise existing employees via options in publicly traded
shares;

• to raise the profile of DAT amongst trade partners and to provide an
opportunity to position DAT as a sector innovator and technology leader to
attract new customers;

• to provide customers with added confidence in DAT's financial
robustness; and

• to provide DAT with more flexibility for future growth funding.



The market and its drivers


Based on IDC forecasts(1), the Company has calculated that the global market for
the two categories of data enabled phones, being smart phones and feature
phones, will grow at a compound annual growth rate of 60 per cent. and 51 per
cent. respectively between 2003 and 2008. In 2005, due to the planned
enhancement of DMP's technology and anticipated growth in shipments of data
enabled phones, DMP is expected to be compatible with shipments of 341 million
new phones.

The Directors believe that the commercial opportunity for device management
products is driven by three primary considerations, which affect, to differing
degrees, many participants in the mobile device market, whether manufacturers,
operators, retailers or corporates. These considerations comprise:

• The desire to reduce operational costs

The support costs of managing data enabled phones are higher than for mobiles
with basic functionality. The Directors believe, that from 2005, an effective
device management policy will be essential for mobile operators.

• The need to create new revenue streams

The market for mobile phones in developed countries is considered by many to be
mature, so operators are seeking to increase the average revenue per user (ARPU)
to develop their businesses. An important consideration when targeting ARPU
uplift is enhanced data revenues. This in turn drives the demand for
sophisticated content and services which require a comprehensive service
delivery platform for successful device provisioning.

• The defence of existing customer bases

The consumer shelf life of mobile phones is reducing. The period during which a
handset upgrade is being considered is the time when an operator is most
vulnerable to losing a customer. The Directors believe that a solid support and
content delivery system is potentially a real benefit in such circumstances.


Strategy


DAT's strategy is focused on generating significant sales growth and achieving
profitability by:

• capitalising on the Company's position as an international developer
and supplier of device management solutions for data enabled mobile phones;

• providing multi-channel content discovery and delivery to
manufacturers, operators, retailers and corporates through the Company's
proprietary DMP service delivery platform;

• providing solutions directly to large manufacturers, operators,
retailers and corporates; and

• distributing solutions to smaller manufacturers, operators, retailers
and corporates through partnered CSPs.


During 2004, DAT sold mobile device software solutions to customers in the
United Kingdom, the United States, Europe and the Far East.


Over the next twelve months, DAT aims to build on its existing position in the
US and to begin to increase sales in EMEA and across the rest of the Americas.
As part of its US expansion process, the Company has recently established an
office in Seattle. In September 2004, the Company recruited an experienced
professional to head up its US operations. Additionally, in October 2004 a
senior UK sales executive moved to Seattle to act as director of North American
sales.

Larger European network operators have proved to be slower than US operators in
introducing data enabled phones. However, the Directors believe that 2005 will
be a favourable time to market DAT's products directly to the large European
operators as they develop their roll-out plans. Smaller operators will be
addressed through DAT's distribution partners, Dangaard and Brightpoint.




--------------------------

(1) IDC Report #31080: Worldwide Mobile Phone 2004-2008 Forecast and Analysis,
April 2004.



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