Trading Update

9 January 2017

NEKTAN PLC

("Nektan", the "Company" or the "Group")

Trading update for Quarter Two ended 31 December 2016

GROWTH CONTINUING TO ACCELERATE WITH NET GAMING REVENUE UP 71% in Q2

Nektan plc (AIM: NKTN), a leading international B2B gaming solutions and services provider, provides an update on trading for the three months ended 31 December 2016.

Key highlights

· Significant growth across all key performance indicators ("KPIs") during the Quarter ending 31 December 2016 with positive growth momentum continuing to accelerate:

· On 21 December, the Company increased its ownership of Respin Inc, the US focused Class II mobile on-premise solution provider, to 85%, transitioning the business to an operating subsidiary of Nektan from a joint venture

· Further product improvements in Q2 in Europe:

o Introduction of new casino games from BluePrint Gaming, Gamevy, DC Comics and Microgaming

o Upgrade of internal Content Management System, Gaming site load speeds improved by 40% and deeper platform bonus features which offer an improved player experience

Proposed equity fundraising as announced on 29 December 2016

· The Company has received commitments to raise £2.275 million gross from new and existing shareholders including certain directors (the "Subscription") through the proposed issuance of 8,272,726 new Ordinary Shares to provide near term working capital. The Subscription is subject to the passing of the resolutions at the Company's Annual General Meeting on 27 January 2017.

· In addition, the board are making an offer to qualifying shareholders to subscribe for up to 1,818,182 new ordinary shares with a value of up to £500,000.

· Both the Subscription and the Offer will be priced at 27.5 pence (a discount of 15 per cent. to the mid-market share price at the close on 28 December 2016) and will include a warrant that will reprice the investors' investment price to the issue price of any lower fundraising in the next six months.

· The funds being raised from the Subscription will provide near term working capital but it is expected that long term funding will be required by the Company and, without undertaking alternative corporate transactions, the Company will need to undertake an additional fundraising.

Leigh Nissim, Chief Executive Officer, said:

"Nektan continues to make positive progress in our businesses in Europe and the US, powered by our proprietary core platform, Evolve, helping the Company to strengthen its position as an international gaming provider, offering solutions and services that are fresh, high quality and tangibly different from other suppliers.

In Europe, our trading momentum in Q2 has been excellent, largely as a result of product and service improvements and the addition of engaging casino games and of new high quality casino partners. We continue to focus on optimising our casino network to deliver profitable growth.

Whilst in the US, owning more of our North American business, Respin, brings the business closer to the Group and helps better leverage the products and assets of both businesses for mutual success."

For further information on the Group, please contact:

Further information on Nektan can be found on the Group's website at www.nektan.com

About Nektan:

Nektan is a leading international B2B mobile gaming solutions and services provider, operating in the regulated, interactive real money gaming (RMG) gaming space, delivering original and innovative solutions to commercial organisations that have established online audiences.

Nektan's full end-to-end technology platform, Evolve, simplifies and supports the route to mobile and desktop gaming revenues, managing the full customer experience and back-office operations, allowing commercial partners to focus on marketing the product to their consumers.

Nektan's US operating subsidiary in partnership with Spin Games, Respin LLC, provides US land-based casinos with in-venue mobile gaming solutions which allow operators to add mobile technology and content to their existing offerings, with products accessible to players across both cabinets and mobile devices inside the casinos. Respin has a strong intellectual property portfolio including game patents for Rapid Games™ (on-property mobile entertainment), and other captivating concepts and brands.

Nektan is headquartered in Gibraltar, regulated by the Gibraltar Licensing Authority and the UK Gambling Commission, as well as in the Irish market and maintains sales and customer support operations in its two primary geographical targets, Europe and North America. The proprietary Evolve technology is developed and maintained by a talented and experienced team of employees from Nektan's Indian office.

Nektan plc was admitted to the AIM market of the London Stock Exchange in November 2014.