Acquisition & board change

Comeleon PLC
16 April 2003

COMELEON PLC

ACQUISITION TALKS, BOARD CHANGE AND TRADING UPDATE

comeleon plc, the 3D imaging company, is pleased to announce that it is in talks
with a substantial  business in a related activity which may or may not lead to
a reverse takeover of the Company.  Any conclusion to these talks may be some
weeks away and would be subject to due diligence and reaching agreement on
detailed terms.  A further announcement will be made as appropriate.

Board change

Steven Bell has resigned as a non-executive director of comeleon with immediate
effect.  Steven has worked with the parties with whom comeleon is now in
acquisition talks for some time and feels that he would have a conflict of
interest were he to remain on the comeleon Board.

Trading Update

As indicated in the announcement made on 24th February 2003 sales of volume
imaged product has been lower than expected. As expected, since this
announcement there has been no upturn in sales of volume imaged product.
Consequently the Board has made the necessary further cuts in production
capacity and overheads at its Tanfield site in order to limit cash burn.  The
Company expects to write-off the value of a number of items in its balance
sheet.  These amounts, are expected to further increase losses for the full year
but have yet not been quantified.



The emphasis of comeleon's business is now expected to be in the sale of the
ImageBox and related consumables, and on the licensing of the technology to
volume manufacturers of consumer electronics, with relatively small volume
production through the Tanfield site.  To this end discussions are on-going with
several major companies regarding licensing the technology.

The cash position at the end of March was approximately £0.93 million of which
£0.3 million is pledged to the providers of finance leases (reducing to £0.2
million in August 2003), leaving a free cash balance of £0.63 million at the end
of March.  Managing the cash within the business is a continuing focus of the
Board.

Enquiries:


comeleon plc                                         Tel: [phone]
Roy Stanley, Chief Executive Officer
Tim Robinson, Finance Director

Buchanan Communications Limited                      Tel: [phone]
Lisa Baderoon


END




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