Trading Statement

SCISYS PLC

(SSY: AIM)

Pre-close Trading Update and Contract Wins

SciSys plc (AIM : SSY), ('SciSys' or the 'Company') - the supplier of bespoke software systems, IT based solutions and support services to the Media Broadcast, Space, Government & Defence, Environment and Applications Support sectors is providing a trading update for the year ending 31 December 2010 prior to entering its close period.

Trading

The Board is pleased to report that the Company performed better than expected in the second half of the period despite the prevailing uncertain and difficult market conditions. As a result it expects to report adjusted EBITA for the year ahead of market expectations and an improvement in net operating margin. The Company's balance sheet has further strengthened with net cash of £4.8m at the end of 2010. Earnings are likely to continue to benefit from a positive impact of a low effective corporation tax rate and the Board anticipates that it will maintain its progressive dividend policy.

New Contract Wins

Following on from its recent success in winning the contract to supply an audio edit and play out system to the Egyptian Radio & Television Union (ERTU), SciSys' Media Broadcast division has further strengthened its international foothold with a number of orders for its dira! product suite giving a combined order intake for MBS International in excess of €2.5m. These include orders from Flemish public broadcaster VRT in Belgium and RUV in Iceland and orders subject to confirmed letters of credit from Oman Radio and Shajah Radio in the United Arab Emirates.

Outlook

The Company continues to trade well and entered into FY2011 with a comfortable order book across all business sectors.

SciSys' Government & Defence division finished 2010 on a strong footing with an encouraging pipeline of prospects for 2011, having successfully diversified its mix of activities. The Environment Division's short term order book is solid and, although the medium term picture is less clear, the prospective new business pipeline is sufficiently promising for the Board to feel optimistic that the division will achieve its targets for the year. Elsewhere the Board still expects that its Applications Support, Space and Media Broadcast divisions will be relatively unaffected by public sector spending cuts: all are entering 2011 with healthy opening order books.

Overall, SciSys continues to face some uncertainty and pressure in the face of the public sector spending cuts; however it is encouraged to see some public sector contracts begin to filter through after the hiatus caused by the spending review. This, plus the cost control measures taken in the last quarter of 2010, leads the Board to believe that the business is likely to enjoy further growth in sales, profits and net margins in 2011.

Chairman Mike Love commented:

"During 2010 although our first half results were positive we gave a note of caution at the time of our interim results about potential challenges to be overcome during the second half. I am pleased that our full year results are better than expected and that the Company has been able to deliver a good performance. This once again demonstrates the underlying resilience of the SciSys business."

Results

SciSys will report its preliminary results for the year ended 31 December 2010 on 29 March 2011.

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About SciSys plc

Employing nearly 450 staff, SciSys is a leading developer of Information and Communications Technology services, e-Business and advanced technology solutions. The Company operates in a broad spectrum of market sectors including Media Broadcast, Space, Government & Defence, Environment and Applications Support sectors. SciSys clients are predominantly blue chip and public sector organizations. Customers include Environment Agency, the Ministry of Defence, Astrium, Arqiva, Cable & Wireless, the European Space Agency, Eumetsat, the BBC, the National Archives and Transport for London. The Company has UK offices in Chippenham, Bristol and Reading and three offices located in Germany. More information is available at www.scisys.co.uk.