Trading Statement

Avia Health Informatics Plc

("Avia" or "the Company")

Trading update

On 27 November 2012, the Company announced that "the challenging market conditions in our core UK markets may continue to restrain growth in the near term. Delays in the government health policy on CCGs have impacted the expected growth in sales of the PathFinderRF product…"

Avia announces that, notwithstanding strong demand from customers for its PathFinderRF software, due to further delays caused by continued uncertainty in the process for Clinical Commissioning Groups (CCGs) gaining NHS authorisation and budgetary control from Primary Care Trusts, it experienced a significant shortfall in anticipated revenues in December 2012. This led to a consequent reduction in anticipated cash inflows. In response to that, the Company has been in contact with its principal creditor which has adopted a flexible and supportive approach and agreed to a deferral of amounts owed. The Directors believe that this agreement, together with the implementation of other cost reduction and deferral measures, will enable the Company to successfully weather the current difficult market conditions.

Whilst the Directors anticipate that the trading environment will remain challenging up until the anticipated completion of the CCG transition process on 1st April 2013, they are pleased to report that trading in January has been ahead of expectations and that the order book and order pipeline are encouraging and anticipate that the Company will be able to make positive announcements regarding further contract wins in the coming weeks.

24 January 2013

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