Trading Update

Zytronic PLC
07 August 2007


For Immediate Release                                              7 August 2007


                          ZYTRONIC PLC ('the Company')
                                 Trading Update

In its last interim statement released on 15 May 2007, the Company reported that
one of its larger customers in the ATM sector was introducing a centralised
stocking system, enabling a reduction in its inventory. Since that date, July
sales to the ATM sector (predominantly from two of the Company's largest
customers in the United States) have been disappointing. The Directors have no
evidence yet of any upturn in the ATM business during the Company's peak trading
months, traditionally from July to October, despite indications to the contrary
from its customers. As a result, the Directors believe that, for the foreseeable
future, sales to the ATM sector are unlikely to reach the levels achieved during
the course of 2006.

The Directors are pleased to report, however, that sales of touch screens,
outside the ATM sector, remain strong. By the end of the Company's next
financial year to September 2008, the Directors expect to see substantial growth
in Zypos, with annualised sales exceeding those sales to the ATM sector as a
whole, therefore reducing the Company's dependency on the ATM marketplace. Work
on the new production facility, to generate significant additional Zypos
capacity, remains on track to come on stream, as planned, at the beginning of
October this year.

Enquiries:

Zytronic Plc                                                       0191 414 5511
John Kennair, Chief Executive

Brewin Dolphin Securities                                          0845 213 1120
Alan Stewart, Corporate Finance
Jamie Cumming, Corporate Broking

Buchanan Communications                                            020 7466 5000
Richard Darby
Isabel Podda




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