Final Results

15 April 2014

DDD Group PLC

Final results for the year ended 31 December 2013

Los Angeles, California: DDD Group plc (AIM: DDD; OTCQX: DDDGY; 'DDD' or the 'Group' ), the advanced imaging and 3D solutions company, announces its final financial results for the year ended 31 December 2013.

Operational Highlights:

· 11m units of DDD TriDef 2D to 3D conversion solutions shipped by TV, PC and mobile licensees in period (2012: 15m); cumulative total TriDef unit shipments of 38m at 31 December 2013

· Renewed TV technology license agreement with Samsung until December 2015

· Signed three license agreements with manufacturers of next generation glasses-free 3D tablets

· Filed patents for 2D streaming video solutions leveraging 3D depth image analysis expertise

· Signed joint development agreement with a subsidiary of InterDigital Corporation (NASDAQ: IDCC) to create joint 2D video solution. Joint solution demonstrated at the 2014 International CES and 2014 Mobile World Congress

· Secured £575,500 investment from InterDigital Inc. for 4.9% ownership position

Financial Highlights:

· Revenues of $3,400,000 (2012: $8,620,000)

· Margins improved to 99% (2012: 97%)

· Adjusted EBITDA* loss of $511,000 (2012: profit of $3,213,000)

· Loss before tax and share based payment of $1,562,000 (2012: profit of $2,047,000)

· Net cash at 31 December 2013 $2,661,000 (December 2012: $3,595,000) - the Group has no debt

*Adjusted EBITDA represents earnings before interest, taxes, depreciation and amortisation adjusted for the non-cash share based payment expense required under IFRS

Subsequent to Period End

· Concluded patent advisory agreement with IP Navigation Group, a leading IP specialist in the area of patent licensing and assertion

Chris Yewdall, Chief Executive said:

"Despite the disappointing performance of the PC market during 2013, the Group made solid progress in the development and delivery of its objectives in the 3D market and also for new technologies that are intended for use in significant growth markets beyond the niche of 3D.

The Group evolved to address emerging markets, successfully partnering with InterDigital Corporation, a leader in wireless intellectual property licensing, to create a combined solution targeted at improving picture quality and reducing bandwidth for streaming video. This new technology resulted from inventions for which patents were filed by the Group in early 2013 and provides innovative solutions that are intended for use in the rapidly growing 2D streaming video and video conferencing markets. The Group is already experiencing a healthy interest in these new solutions from existing licensees in the PC and mobile markets.

Most recently, the Group announced that it had appointed IP Navigation Group as its patent licensing advisor. This was the culmination of an extensive due diligence process to find a suitable IP partner and will result in a licensing program targeted towards opportunities in the consumer electronics and professional 3D conversion markets.

For 2014, the Group will focus on commercializing the new 2D technologies with existing and new licensees, assisting IP Navigation Group in concluding licensing discussions with prospective licensees and continuing to support existing licensees in the 3D TV and tablet markets."

Enquiries

About DDD

DDD transforms the visual experience. Its advanced imaging and TriDef® solutions are licensed by leading brands including Samsung, LG and Lenovo for use in TVs, tablets and PCs. Over 38 million 3D products have been shipped by DDD's licensees worldwide. DDD's Yabazam® streaming service delivers 3D to smart TVs and tablets everywhere. DDD's shares are quoted on the London Stock Exchange's AIM Market (AIM: DDD) and the OTCQX (DDDGY). For more information please visit www.DDD.com.

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Revenues for the year ended 31 December 2013 were $3,400,000 (2012: $8,620,000), a decrease of 61%. The decrease was primarily due to a decline in shipments from the 3D PC market.

TriDef technology royalty revenues (including direct to consumer software sales) decreased to $3,335,000 (2012: $8,549,000) as shipments across TV, PC and mobile declined from 15 million to 11.2 million units. The mix of unit shipments by volume was: 97.1% TV, 2.7% PC and 0.2% mobile devices (2012: 82% TV, 16% PC, 2% mobile). Royalties from OEM agreements decreased to $3,132,000 (2011: $8,339,000) while software licensing sales were $203,000 (2012: $210,000) for the year.

Other licensing royalty revenues were $51,000 (2012: $64,000). This includes royalties received from IP patent licensing as well as royalties from other license agreements which are non-royalty based. Other revenues were $14,000 (2012: $7,000).

Gross profit decreased by 60% to $3,361,000 (2012: $8,376,000) and gross margin increased to 99% (2012: 97%) as a result of the continued shift in revenue mix towards higher margin royalties.

Administration expenses decreased 18% to $4,287,000 (2012: $5,242,000) due to a reduction in headcount related to PC market activities and the weakening of the Australian Dollar which represents approximately 50% of the expense base by virtue of the Australian operation.

Other income increased to $415,000 (2012: $79,000). The majority of other income is related to the Australian R&D incentive program which was unavailable to the Group in 2012 due to the timing of incentive program rule changes.

The non-cash share-based incentive cost decreased to $426,000 (2012: $733,000).

Adjusted Group loss before tax and share-based incentive costs was $1,562,000 (2012: profit $2,047,000). The reported pre-tax loss was $1,988,000 (2012: profit $1,314,000).

The total taxation charge was $581,000 (2012: $550,000). Taxation includes foreign withholding taxes withheld at source as well as local sales taxes, adjusted by the movement in the Deferred Tax Asset and Liability accounts. Note 3 to the Consolidated Group Financials presented below describe this in more detail.

The Group recorded a loss per share during the year of 1.86 cents (2012: profit 0.57 cents).

Net cash used by operating activities was $179,000 (2012: generation of $2,217,000). Capitalised expenditure was $1,897,000 (2012: $1,873,000). This cash flow was supplemented by $1,281,000 of net proceeds raised from the issue of new shares through employee stock option exercises during the year and a new 4.9% equity owner (2012: $72,000), resulting in cash of $2,661,000 at the end of 2013 (2012: $3,595,000).

3D TECHNOLOGY LICENSING BUSINESS

Automatic 2D to 3D conversion

This ability to create depth information from a 2D image was initially packaged as technology solutions for licensing into the market for consumer 3D displays, including televisions, personal computers, smartphones and tablets. The value proposition is simple as there is insufficient 3D content from film studios and from television production companies to support a 24 hour/day, seven day/week 3D TV channel, therefore having the capability to automatically convert existing 2D TV shows, movies and games in the home is an important feature for consumer electronics manufacturers and consumers alike. For the consumer, it ensures that a diverse range of 3D content is instantly accessible as soon as they purchase their 3D product and for the consumer electronics manufacturer, the inclusion of this capability overcomes the consumers concern over lack of available 3D content when purchasing their 3D product.

Addressable market:

Of the markets that the Group is currently active in, the market for 3D consumer devices is the most mature. DisplaySearch, a leading market research firm for the consumer electronics space, reports that 3D TV shipments rose 8.3% to 45 million units in 2013, representing 20.6% of all TVs produced during 2013. DisplaySearch's market research suggests that 3D TV production will continue to grow, as Chinese TV manufacturers aggressively expand their 3D model ranges. In addition to licensing the core 2D to 3D conversion technology to TV chip makers, the Group has recently released its game and video 3D conversion solutions as downloadable software apps, targeted at the growing market for Smart TVs, particularly in China.

The market for 3D smartphones and tablets is the next emerging consumer market, where the viewer is able to see the 3D image without the need for any special viewing glasses. Presently the growth is constrained by the availability of the new 'glasses‐free' 3D displays however DisplaySearch forecasts that this market will grow to approximately 15 million units per year by 2017. The majority of the Group's new licensees are active in the emerging 3D tablet market. The 3D PC market is presently declining as a result of the general slow down in sales of PCs as consumers switch to tablet devices. While the Group has enjoyed a strong market share in the PC segment during 2009‐2013 with over 3.6 million copies of its software shipped by OEMs, absent a turnaround in the fortunes of the PC market in general, the Group does not expect that the 3D PC market will contribute materially to future 3D technology licensing revenues.

Patent Licensing

To date, the majority of the Group's licensing revenue has been derived from the 2D to 3D conversion technology licensing program, whereby the Group provides a software application or reference design to the licensee for inclusion with the licensee's 3D products. During 2013, the Group expanded the scope of its patent license agreement with Samsung that allows Samsung to undertake offline 2D to 3D conversion of cinematic content using the patent claims owned by DDD. Unlike a technology license, the patent license does not require any software or reference design to be provided by DDD to the licensee since the licensee has the skills to develop its own implementation.

With over 38 million 3D consumer products that include the Group's TriDef 3D technologies shipped by leading manufacturers since early 2010, there is now an established value for the internationally registered patent claims on which DDD's solutions have been built. As new revenue streams continue to be developed, the Group expects that patent licensing revenue will grow as the Group establishes its patent rights with prospective licensees. The patent licensing program also has the potential to create license and royalty revenue from applications in 3D markets that are outside the scope of the current technology licensing program. The Group appointed IP Navigation Group as its exclusive patent licensing advisor in March 2014. IP Navigation Group will work closely with the Group to secure patent licensees in the consumer and professional 3D markets.

Looking forward - 3D Technology Market Update

During 2013, the Group continued to realise the majority of its revenues from technology licenses in the 3D market. During the year, another TV chip licensee completed the development of a 3D TV chip incorporating the Group's technologies and began marketing the chip to customers in early 2014. It is uncertain whether the chipmaker will secure customers for these new chipsets however it could present additional royalty contribution for the recently introduced HD chip.

The design of video processing chips for TVs continues to evolve with the latest chips including dual and quad core ARM-based processors. This evolution has allowed the Group to develop software implementations of the TriDef 3D game and video conversion features for these next generation Smart TVs. During 2013, the Group completed development of Android versions of these Smart TV apps that are targeted at certain upcoming SmartTV platforms from vendors in China. The software approach is expected to reduce delivery times (compared to conventional chip development projects) and reduce technical risk and cost for OEM licensees while delivering a higher quality 3D image than competitive solutions.

In the PC market, the Group will continue to maintain software and game support for the OEM and consumer market and will continue to secure new licensees provided that the market remains sustainable.

In the mobile device and tablet market, the Group completed development of the TriDef 3D gaming and TriDef 3D gallery applications for Android devices. The new applications will include a promotional version which will be made available for free in the Google Play app store to introduce the software at no risk for new users. A paid upgrade option is available that enables a fully featured upgrade version of the software for users who wish to use the software.

OTHER BUSINESS AREAS

3D Content Publishing - "Yabazam"

The technology licensing business represents an opportunity to generate royalty income for each device produced that incorporates the Group's TriDef 3D technologies. In response to requests from OEM customers seeking original 3D content to include with their 3D devices, the Group launched Yabazam!®, an online 3D portal offering a variety of high definition originally made 3D movie titles that can be streamed directly over-the-top to 3D capable Smart TVs and mobile devices.

Additionally, promotional Yabazam content has been incorporated into the TriDef PC software, and, in some instances, Yabazam icons have been preloaded on 3D PC products, which allow users quick access to visit the site and view the range of content available.

The content library of originally made 3D movies doubled in size during 2013 to a total of 123 titles from 43 producers around the world. The Yabazam Smart TV app has been expanded to reach 17 countries and language packs for six of the most popular countries were released in early 2014. US Smart TV users have access to the service as a subscription service for $9.99 per month while international customers can download individual titles on a video-on-demand basis. The service is was expanded to include Panasonic's range of 3D TVs in March 2014.

Yabazam is also available in the Google Play store for customers with Android-based 3D tablets.

Addressable Market

As the installed base of 3D televisions and mobile devices continues to grow, the Group is broadening the reach of the Yabazam 3D movie streaming service. Data from DisplaySearch indicates that Samsung and LG represented just over 50% of all 3D TVs shipped during 2013, therefore the Group's Yabazam Smart TV app is already available to half of the 3D Smart TVs shipped annually. Industry research suggests that around 430 million 3D capable TVs, PCs, Monitors and Tablets will be in living rooms worldwide by the end of 2016, most of which will have Wi-fi connectivity or Smart TV internet capabilities. The US market represents approximately 18% of the worldwide market.

EMERGING 2D TECHNOLOGY LICENSING BUSINESS

Since inception, the Group's technical team has developed world-class expertise in the efficient extraction and processing of depth from a two dimensional image. The primary focus of the Group has been to develop a series of patents and technologies based on this expertise that delivered practical solutions for the stereoscopic 3D industry. During 2011, the Group began to examine how its depth extraction expertise could be re-packaged to provide innovative solutions for markets beyond the niche stereoscopic 3D market.

Efficient encoding of 2D streaming video

The first of the new patents created by the team were filed in early 2013 and relate to how the depth information of the 2D scene can be used to more efficiently encode streaming 2D movies. The value proposition is simple. Since the viewer is often focused on actors and objects towards the front of the scene, the depth information can be used to guide the movie encoding process to direct more of the available picture quality to areas of interest to the viewer. The result of this approach is that the same quality picture can be delivered for approximately 20% less bandwidth. This has a number of benefits; for the streaming movie company, they can deliver the same picture quality for less bandwidth, saving on their distribution costs; or alternatively they can keep the bandwidth at present levels and use the process to improve the perceived picture quality in the streaming movie. Research from Conviva suggests that the revenue uplift for improving picture quality is upwards of 11.4%. Bandwidth costs for streaming media are likely to become an increasing concern for streaming providers as the resolution of video evolves from high definition (HD) to ultra high definition (UHD) which requires four times the information of an HD image.

For the viewer, they can save bandwidth costs if their internet access is provided on a Usage Based Billing (UBB) model, or they benefit from improved picture quality and fewer buffering delays. This technology underpinned the recent investment in the company by US-based mobile licensing specialist, InterDigital Communications Corporation (Nasdaq: IDCC). Since the video is pre-processed before it is encoded, the solution is compatible with all the current digital media distribution formats and standards and does not require any additional decoder technology in the existing display devices, making it backward compatible with the sizeable existing installed base of TVs, PCs, tablets and smartphones.

Addressable Market

The Group is presently demonstrating the new solution to various streaming video companies and at trade shows such as the International CES and Mobile World Congress in conjunction with InterDigital. The objective is to introduce a solution during 2014 that saves bandwidth for streaming video operators. Tests have indicated that the new video pre‐processing solution will save around 20% of the bandwidth that is used to stream a movie to the viewer's home. The US market is the most mature streaming media market, where households presently consume around 38Gb/month of downstream internet bandwidth, of which 67% or 25Gb is used for streaming movies from services such as Netflix, Amazon Prime and Hulu (source: Sandvine H2 2013 Global Internet Phenomena Report). Consequently, the Group is focused on developing opportunities in the US market where the new technologies can be used by customers to either reduce bandwidth costs, or improve the quality of experience for the viewer using the same bandwidth. Following the successful deployment of the solutions to US customers, the Group plans to introduce the solution internationally in emerging markets in Europe, South America and Asia.

Based on a current cost of a Petabyte (1024 Gb) of streaming media, it is estimated that the top seven US streaming media providers spent approximately $78m on bandwidth costs during 2013 and this is set to grow to an estimated $114m in 2014. On the basis that the pre‐processing solution is able to save 20% of the bandwidth of a typical video stream, this would equate to savings of approximately $15m in 2013, growing to $23m in 2014 for a streaming media provider who pre-processes their content with this solution. The solution will either be an ROI model based on the bandwidth cost savings achieved or a Quality of Experience (QOE) model and the Group plans to determine the optimal business model during 2014.

As mobile networks continue to evolve towards 4G LTE infrastructure, it is also expected that consumers will make more use of their mobile network providers to deliver streaming movie content. Therefore this licensing opportunity is expected to evolve from an in‐home 'fixed access' model to a fixed access and mobile access model over the 2014‐2017 period, further increasing the addressable market size. The data rates on fixed access networks will further increase from 2014 onwards as service providers begin the delivery of ultra high definition (UHD) or 4K content which requires four times as much data when compared to a normal HD image.

Video conferencing

The real time capture of depth information together with a 2D image is becoming an increasingly viable application as products such as Intel's RealSense and Google's "Project Tango" depth sensors become available to application developers for use in PC's, tablets and smartphones.

These new depth sensors and their related applications are expected to enable a range of new opportunities for the Group to exploit its class leading expertise in depth processing that include real time video conferencing.

The Group is pursuing two opportunities in this emerging market; real time background removal and improved video conferencing picture quality. These new solutions leverage the Group's existing intellectual property and expertise in depth processing and depth-based video signal encoding.

For real time background removal, the Group's depth processing algorithms allow the participant in a video conference to be easily identified and tracked using either a depth sensor or a normal 2D webcam in a PC, tablet or smartphone. This depth tracking information can be used to remove the background behind the participant in real time and replace it with an alternative image. This feature can be used for professional applications such as inserting the participant into a PowerPoint presentation they are delivering during the video conference or removing the background for security reasons. For consumer applications, the participant can use the feature to place themselves into a still image, video or game sequence to share on social media.

Importantly, since the Group's technology is able to use the existing 2D webcam to automatically identify and track the participant, the solution provides OEM customers with a lower risk, entry level solution that does not incur the additional expense of the separate depth sensor.

When coupled with the Group's new depth-based video pre-processing solution, the video conferencing picture quality can be further improved by using the depth information to direct the video conference encoder to assign more of the bandwidth towards the participant, effectively improving the picture quality of the particpant's face and body to other's on the video conference.

Addressable market

This new technology has already been demonstrated to several potential licensees in the PC and smartphone markets to evaluate the interest of the OEM community and likely use of these features by consumers. The initial results have been very positive.

DisplaySearch estimates that the depth sensor market in 2015 will exceed 300m units annually as they are incorporated into televisions, personal computers, mobile devices or as accessories to these devices (e.g, Microsoft's X-Box Kinect). The adoption of these devices is anticipated to be rapid as they enable gesture sensing to expand the interaction of device users with the device for a variety of use cases.

Beyond this hardware-dependent market, the Group's software solution can provide the real time video conferencing capability to any device with a suitable webcam including existing PCs, tablets, and smart phones. The addressable market for these devices is in excess of 1.5 billion units per year.

A per unit royalty in conjunction with a direct-to-consumer software model will be used to monetise this opportunity by the Group with the expectation that the solution will become available in late 2014. As the Group assists prospective licensees in developing and refining their depth sensor solutions, development fees may be earned for customer specific development activities.

During 2014 the Group expects to augment the current technology licensing income from the 3D market with licensing revenue from new opportunities in the emerging 2D markets as the new depth sensor and video pre-processing solutions are deployed to video conferencing and streaming video licensees. This transition should reduce the Group's reliance on the performance of the 3D market and create diversified licensing income.

In the 3D market, the Group will seek to secure licensees for new game and video 3D conversion apps, with a particular focus on Chinese Smart TV and 3D tablet manufacturers. Additional content acquisitions are planned for the Yabazam 3D movie streaming service to ensure that the growing number of users remain engaged with the service on Smart TVs and 3D tablets.

The Group appointed IP Navigation Group as its patent advisor in March 2014 to assist in licensing the Group's extensive patent library. The objective is to secure license fees for the use of the Group's international patent library in various 3D consumer products and professional services.

Where practical, the Group will also pursue new patent filings for the underlying ideas involved in these new solutions in order to continue to strengthen its international patent library.

Despite the challenges that were faced during 2013, the Board is confident that the Group can return to the growth performance that was demonstrated in recent years as the new technologies are delivered and the licensees are secured during 2014.

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1 Reserve transfer for exercised, forfeited and expired options.

SELECTED NOTES TO THE SUMMARY FINANCIAL STATEMENTS

1. Selected financial data disclosure

The financial information set out above does not constitute the company's statutory accounts for the years ended 31 December 2013 or 2012 but is derived from those accounts. Statutory accounts for 2012 have been delivered to the registrar of companies, and those for 2013 will be delivered in due course. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying their report except for an emphasis of matter in relation to going concern in 2013 and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. 

Going Concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report which will be contained in full as part of the 2013 Annual Report and Accounts (See Note 8 below).

The Directors have prepared cash flow forecasts up to 31 December 2016 which indicate the Company has access to sufficient cash. Forecast revenue includes assumptions regarding existing contracts and new revenue streams arising from contracts which are in the negotiation phase; however, there is uncertainty that contract negotiations will be finalised.

If there are material adverse variances against these forecasts, the Company is able to institute measures to take mitigating actions to manage cash resources and access additional funding from strategic sources if required.

The Directors have concluded that the combination of these circumstances represent a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. Nevertheless after making enquiries, the Directors have a reasonable expectation that the Company has access to adequate resources to continue in operational existence for the foreseeable future. For these reasons, they continue to adopt the going concern basis in preparing the annual report and accounts.

2. Segmental reporting

In accordance with IFRS 8, operating segments are reporting in a manner that is consistent with the internal reporting provided to the Board of Directors, the chief operating decision maker. Management information that is regularly reported to the Board for the purposes of allocating resources and monitoring performance is the monthly board pack. The board pack contains an analysis of revenue for the Group's activities. At present, given the size of the Group, costs of goods sold and operating expenses cannot be allocated on a reasonable basis to the segments below and, as a result, the segmental analysis is limited to the Group gross profit.

The 3D content publishing and emerging 2D technology segments described in the Strategic Report do not yet contribute over 10% of Group revenues and therefore separate disclosure is not yet provided.

Major customers

The customers contributing over 10% to the gross revenues of the Group are as noted in the following table:

Regional breakdown

The majority of the Group's revenues (2013: 95%; 2012: 97%) are from customers based in the Asia Pacific region.

3. Income tax

The tax assessed for the year differs from the standard rate of corporation tax as applied in the respective trading domains where the Group operates. The tax charge on ordinary activities is explained below:

Given that a large majority of the Group's revenues are derived from licensees in Asia, foreign withholding taxes deducted at source on royalties and licenses from these countries create the majority of the income tax expense recorded in the Group accounts. These taxes will be available as future foreign tax credits for the US subsidiary and therefore are reflected as increased future potential deferred tax assets ("DTA").

There are substantial unrelieved tax losses and tax credits of $42,658,000 (2012: $41,179,000) across the Group companies as set out below:

1During 2011, the Company reviewed its tax losses consistent with the requirements of US tax authorities (Internal Revenue Code Section 382). This review resulted in an anticipated $3.5 million reduction to unrelieved tax losses (included above).

2US effective tax rate including federal and state income taxes is anticipated to be 40% based on current tax law.

At 31 December 2013, the availability to offset unrelieved tax losses against future taxable trading profits may be subject to restrictions in the respective tax jurisdictions. The entire deferred tax asset has not been recognised due to the uncertainty of the timing and recoverability of the asset. The remaining asset will be recovered in line with future profits.

4. (Loss)/profit per share

1 Deferred Shares:

On 5 July 2008 the share capital of the Company was split so that a total of 74,416,547 ordinary shares of par value 10 pence became 74,416,547 deferred shares of par value 9 pence plus 74,416,547 new ordinary shares of par value 1 penny.

The holders of the deferred shares shall not be entitled to receive any dividend out of the profits of the Company available for distribution. On a distribution of assets on a winding-up or other return of capital (otherwise than on conversion or redemption or purchase by the Company of any of its shares) the holders of the deferred shares shall be entitled to receive the amount paid up on their shares after distribution (in cash or in specie) to the holders of the new ordinary shares the amount of £100,000,000 in respect of each new ordinary share held by them. The deferred shares shall not entitle their holders to any further or other right of participation in the assets of the Company. The holders of deferred shares shall not be entitled to receive notice of or to attend (either personally or by proxy) any general meeting of the Company or to vote (either personally or by proxy) on any resolution to be proposed. No certificates will be issued in respect of the deferred shares. The diluted loss per share does not differ from the basic loss per share as these shares are anti-dilutive.

For 2013, the diluted loss per share does not differ from the basic loss per share as the exercise of share options would have the effect of reducing the loss per share and is therefore not dilutive under the terms of IAS 33. For 2012, the diluted profit per share includes the effect of outstanding, vested, in-the-money share options at the end of the period (4,270,833).

5. Intangible assets

Other intangibles include externally developed websites and Smart TV application development for the Group. There is no impairment to the intangibles in any of the reported periods.

6. Deferred tax asset

Based on management's review of the subsidiaries and the fact that the Australian subsidiary has utilised accrued net operating losses in recent periods for tax purposes, a DTA of $1,096,000 has been maintained in 2013 (2012: $1,096,000) related to recently revised business model forecasts of profitability and anticipated tax loss usage.

7. Events after the balance sheet date

Operational:

The Group appointed IP Navigation Group as its patent advisor in March 2014 to assist in licensing the Group's extensive patent library. The objective is to secure license fees for the use of the Group's international patent library in various 3D consumer products and professional services.

The Group has published regulatory announcements which can be found on the Group's website at http://www.ddd.com/investors/rns-announcements/.

8. The Group's full Annual Report and Accounts will be made available to shareholders on or before 10th May 2014.

9. The Annual General Meeting of DDD Group plc will be held at Norton Rose LLP, 3 More London Riverside, London SE1 2AQ at 10.30am on Tuesday 10th June 2014.