Trading Update

Bright Things plc 14 September 2005 14 September 2005 Bright Things plc Trading update Bright Things, the developer of an educational games console, Bubble, and associated software for the pre-school market, is pleased to announce a trading update. Commenting on the trading update, Dominic Wheatley, CEO Bright Things said: 'This is a very exciting stage in Bright Things' development. Bubble is now available in shops across the country and we will soon be releasing new titles - including Noddy and Thomas and Friends. Whilst the pre-school market remains highly competitive, we are encouraged by the early feedback from the soft launch.' Product Bubble was launched in the UK with a choice of Balamory or Teletubbies software in late August. Initial consumer demand has been encouraging and in line with expectations. Early feedback from consumers and our distributor is so far positive and encouraging for the key Christmas selling season ahead. As previously announced, the company entered into a distribution agreement with Bandai UK. In the agreement Bandai guaranteed to purchase 100,000 units of the hardware and 200,000 units of the software within 12 months from launch. The company has now received purchase orders in excess of these numbers for production through to November, and an indication that further orders may need fulfilment before Christmas. Margins remain tight on these early shipments whilst the engineering cost reduction phase continues. This is expected to improve over the coming months as both time and volumes help us lower the cost of goods. Manufacturing/Supply The factory is now fully operational and is on target to manufacture and ship our requirements for the Christmas season. To-date in excess of 20,000 Bubble bundles and 20,000 standalone software have been landed in the UK. Licence properties In addition to the 15 properties already announced from BBC Worldwide, Chorion, Entertainment Rights and HIT Entertainment we are pleased to announce 5 recent acquisitions: Dora the Explorer from Nickelodeon; Babar, Franklin and The Fairly Odd Parents from Nelvana; and Koala Brothers from Spellbound. These new properties strengthen our international catalogue. Marketing / PR The main TV advertising campaign for Bubble will commence at the end of September. The TV advert can be seen on our website. www.worldofbubble.com Intellectual Property Following the acquisition of PushPlay Interactive, the company has focused on integrating the Intellectual Property owned by the group. Continued effort is being applied to the Patent applications. Software development Balamory, Teletubbies and Tweenies are available now in the UK. Fimbles is entering manufacture. Noddy and Thomas and Friends are still being finalised and are expected to land in early November. An additional 4 software titles have entered development (Bob the Builder, Angelina Ballerina, Postman Pat and Pingu). These titles are expected to launch in spring 2006. In summary The Directors remain confident of the potential for this product in the UK and are encouraged by the early feedback from the soft launch of the product into the UK marketplace. Of course a note of caution remains due to the highly competitive nature of the pre-school marketplace. We continue to review and assess the licensing and distribution strategy of the product outside of the UK and Eire territory. More product information is available at www.worldofbubble.com Ends For further information please contact: Bright Things PLC 0870 351 7770 Dominic Wheatley, CEO Ady Moores, CFO Matthew Tims, Publishing Director Giles Croot / Mark Antelme, Brunswick 020 7404 5959 This information is provided by RNS The company news service from the London Stock Exchange
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