Pre close trading update

IndigoVision Group PLC ("IndigoVision" or the "Company")

Pre close trading update

Sales for the year to 31st July 2013 are expected to be around £32m, ahead of the previous year and in line with market estimates. Following extensive improvements to the product range in the last two years, intelligent camera sales are expected to be up over 30% year on year, more than offsetting reductions in traditional encoder sales. Intelligent cameras are expected to account for half of group revenues in the year to 31st July 2013.

As anticipated at the interim stage, gross margins improved during the second half, but remain lower than last year overall reflecting the changing product mix of sales towards intelligent cameras. Overheads have continued to rise as planned, with further investment in the sales and distribution network and in product development. Operating profits for the year to 31st July 2013 are expected to be below earlier expectations and market estimates. Pre tax profits for the year to 31st July 2013 are expected to be approximately £2m (prior year £2.3m).

Marcus Kneen, chief executive, said: "We have made progress towards our goal of repositioning IndigoVision to achieve market rates of sales growth, and the rapid growth of intelligent camera sales in the current year demonstrates what IndigoVision is capable of. During the current year we have again broadened the core product range significantly and increased the sales and pre-sales headcount by one third. The benefit of this investment in future growth has begun to show through in intelligent camera sales growth, but the transition has impacted the operating result for the year."

The results for the year to 31st July 2013 are expected to be announced on 26 September 2013.

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Notes to Editors

About IndigoVision

IndigoVision is a leader in the market for networked video security systems, including intelligent cameras, encoders, storage devices and management software for airports, ports, rail, traffic, cities, retail, banking, mining, education, casinos, police, prisons and governments

With sales and support staff in 22 countries, IndigoVision partners with a network of some 500 trained and authorised IndigoVision resellers to provide local system design, installation and servicing to IndigoVision's system users.