Half year trading update

30 July 2012

DDD Group PLC

Half year trading update

DDD Group plc (AIM: DDD, 'the Group'), the 3D solutions company, announces a trading update for the six months ended 30 June 2012.

The Group expects first half revenues to be approximately $4m, up 74% compared to the same period in 2011 and up 25% from the second half of 2011 as the Group continues to benefit from growing demand for its 2D to 3D conversion software. First half gross margin is expected to be 96%. Cash and receivables (including earned royalties) at the end of the period were in excess of $4.4m and the Group has no debt.

Demand for the Group's TriDef® 2D to 3D conversion products rose again in the first half of 2012, with approximately 7m units shipped, up 52% compared to the same period in 2011. This brings the cumulative number of consumer devices shipped with TriDef 3D to more than 18 million units worldwide at the end of June 2012.

Compared to the same period in 2011, shipments by TV chip manufacturers grew 23% while PC software shipments grew 1,031%. Mobile IP shipments grew by 487% and represented approximately 4.5% of all IP shipments in the period. Demand for the Group's products in the PC market continues to increase, with more than 1 million licenses of the higher value TriDef 3D PC software shipped during the first half, representing 15% of IP shipments in the period.

The Group also introduced its Yabazam! 3D Smart TV app during the first half on both Samsung and LG Electronics' 3D TV platforms. The app has now been downloaded almost 60,000 times. The Group expects to activate the pay TV version of the Yabazam app during the current quarter, allowing 3D Smart TV owners to watch any of the growing range of Yabazam! 3D movies on a pay-per-view basis.

Chris Yewdall, DDD's Chief Executive Officer said:

"Demand for our TriDef 3D technology continues to demonstrate strong growth across a range of products and we have delivered a good first half that underpins the Board's expectations for the full year."

Results for the first half of 2012 are expected to be published in late September.

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About DDD Group

DDD transforms the visual experience by bringing 3D to the consumer. Its TriDef®3D solutions convert 2D to 3D automatically, and enable delivery to 3D TVs, PCs and mobile devices. Leading brands including Intel, Samsung, LG Electronics and Sony license these solutions. Over 19 million TriDef 3D products have been shipped by DDD's licensees worldwide. DDD's Yabazam! label delivers 3D everywhere with its online content portal and Smart TV apps. DDD's shares are quoted on the London Stock Exchange's AIM Market (AIM:DDD). For more information please visit www.DDD.com.