Trading Statement

27 January 2016

Defenx PLC("Defenx" or "The Group")

Trading Statement

Defenx PLC (AIM: DFX), the mobile security software company, is pleased to provide an update on its current trading and anticipated results for the year ended 31 December 2015.

Highlights

• Admission to AIM in December 2015, raising £2.1 million

• Financial results for the year ended 31 December 2015 in line with management expectations

• Revenues in the region of €4.3m representing 80% year-on-year growth

• Memopal strategic relationship already yielding results

Financial Performance

In December 2015, the Group was admitted to trading on AIM, raising £2.1 million before expenses via a placing and subscription with new and existing investors.

The Group is pleased to report that its financial results for the year ended 31 December 2015, which are expected to be released in April 2016, are in line with management expectations. Defenx traded well in the second half of 2015 and expects to report revenues for the year ended 31 December 2015 in the region of €4.3 million (2014: €2.4 million) representing 80% year-on-year growth.

Defenx has now sold over 2.9 million security software licences, reflecting continued strong demand from channel partners and end-users.

Memopal strategic relationship

Defenx's strategic relationship with Memopal, whose shareholders invested €1 million in the IPO, continues to develop rapidly. Memopal, founded in Rome in 2007, is a cloud storage provider that offers multi-lingual, multi-device file synchronisation and backup. Memopal's internally-developed software provides highly cost-competitive and scalable cloud storage infrastructure to customers in 75 countries.

The Directors believe that this strategic relationship provides the Group with significant cross-selling opportunities due to the complementary nature of its product offerings with those of Memopal.

The Group is already engaged with Memopal's key customer and anticipates launching Defenx security products with them in the coming months. In addition, several of the Group's channel partners have expressed a strong interest in Memopal's solutions, which will sell under the Defenx brand, sharing revenue with Memopal.

2016 Outlook

Trading conditions for the Group remain positive and the board is confident that 2016 will show continued growth in revenue and profit driven by the launch of new products and its expanding channel partner relationships consistent with its stated strategy.

Andrea Stecconi, Chief Executive of Defenx PLC, commented:

"I am pleased that, since our successful admission to AIM last December in extremely challenging markets, we continue to grow by bringing our security and protection products to an ever wider audience. Our distinctive B2B business model will enable us to capitalise profitably on increasing public awareness of mobile security and privacy threats. I look forward to reporting on new products, channel partners and continued strong growth in 2016."

Enquiries

Defenx PLC 020 3769 0687

Andrea Stecconi - Chief Executive

Guido Branca - Managing Director

Philipp Prince - Finance Director

Strand Hanson Limited (Nomad, Financial Advisor and Joint Broker) 020 7409 3494

Angela Hallett

Mustapha Omar

WH Ireland (Joint Broker) 020 7220 1666

Adrian Hadden

Mark Leonard

Newgate (Financial PR) 020 7653 9850

Adam Lloyd

Ed Treadwell

About DefenxFounded in 2009, Defenx is a fast-growing and profitable security software company that offers a range of products for the mobile, PC and network security markets. Defenx security software is priced competitively, fully featured and efficient (reduced use of memory, processing capacity and therefore power).

A flexible marketing strategy, focused on white-label and profit-share arrangements with distributors, telecoms companies and hardware manufacturers, enables Defenx to compete with established industry incumbents. Since inception, Defenx has sold over 2.9 million security software licenses, primarily in Europe, the Middle East and Africa.

Defenx's global distribution partners currently include 3Italia, the fourth largest Italian mobile network operator, and Seagate Technology, a world-leader in disk drive manufacturing, amongst others including telecoms operators, systems integrators and original equipment manufacturers.

Defenx was admitted to trading on AIM on 3 December 2015, raising £2.1 million to accelerate its growth through new channel partners and product development.