Trading Update

7th January 2013

Synety Group plc

("the Group" or "the Company")

Trading Update for the year ended 31 December 2013

Rapid and Accelerating sales growth

· Recurring Revenue up approx. six fold

· Number of Users up approx. five fold

· Number of Active licences up approx. six fold

· Trading expectations met or exceeded

The Group is delighted to report significant growth for the period ending 31st Dec 2013, with sales of its CloudCall telephony software solution exceeding market expectations.

Numbers of CloudCall users have nearly quintupled, and the number of licences issued has risen six-fold. The Annualised Recurring Revenue is up by nearly the same multiple to £850,000.

The Board are particularly pleased by the acceleration in growth in the last six months of the year and believe that these numbers not only validate the strategy, but are starting to clearly demonstrate the growing market demand and huge potential for CloudCall and Synety.

In addition to the rapid sales growth, the board are very encouraged by the continuing increase in average customer size. A trend which is expected to continue as both the products and the company matures.

Synety, predominantly operates an indirect go-to-market model with integrated CRM partners providing sales leads from their current and prospective customers. Since starting to approach CRM companies 14 months ago, 18 are now integrated and live plus there are a substantial number that are either currently integrating or planning to do so.

Since CloudCall's easily addressable market is defined as the number of integrated CRM companies end users, this increase in CRM partners should lead to a further growth in customer acquisition in 2014 as these partnerships continue to develop and new partners integrate. The Board believes that as the percentage of CRM companies offering CloudCall's functionality to their customers increases, so will the pressure on other CRM platforms to so the same. To-date we have experienced little competition from companies offering a competing product set and so expect to see CRM companies continuing to integrate with CloudCall. Thus, as we have observed previously, this remains an exciting 'land grab' opportunity.

 Simon Cleaver, Synety's Executive Chairman added:

"We have a compelling offer for both CRM companies and their end-user customers and have a clear first mover advantage. We are also beginning to see local demand in the USA, the world's biggest CRM market.

I strongly believe that these numbers robustly illustrate the markets appetite for CloudCall and our team's ability to deliver. We anticipate growing sales very strongly again this year. All the Board are very excited and remain confident of our prospects for creating a scale player in this emerging market."

- Ends -

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