New Research Contract

Image Scan Holdings PLC
3 May 2002


For Immediate Release                                               3 May 2002



                         IMAGE SCAN HOLDINGS plc ('Image Scan')

                             New Research Contract

Image Scan, a leading provider of multi-view, 3D X-ray imaging for the security
and industrial inspection markets, has signed a major 18 month research contract
under the Engineering and Physical Sciences Research Council's (EPSRC's) Small
Business Research Initiative (SBRI).

The contract, with a total value of £198,000 is to investigate the possibilities
of further extending the performance of Image Scan's VIXion system in addition
to developing specific design rules to enable potential customers to 'design in'
to their products X-ray inspection capability. The research programme proposed
by the Company draws on detailed in-house expertise in imaging, X-ray source and
detector design in collaboration with specific key skills from research partners
at the University of Bath, Pera International and Bespak.

Nicholas Fox, Chief Executive, said:

'The SBRI programme is a new Government initiative resulting from the Science
and Innovation White Paper, published in July 2000, that aims to stimulate
high-technology firms in developing new research capacity. We are delighted that
Image Scan is fortunate to be one of the first SME's to benefit from this pilot
scheme.'

For further information:

Nicholas Fox, Chief Executive
Image Scan Holdings                             07710 522011

Richard Darby
Suzanne Dunne
James Strong
Buchanan Communications                         020 7466 5000


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