Trading Update

3D Diagnostic Imaging PLC

("3D" or the "Company")

(AIM ticker 3DD)

TRADING UPDATE

3D, which owns the protected rights to a technology platform with a number of significant potential commercial applications, issues the following trading update.

Following the successful launch in 2010 by CarieScan Limited, 3D's wholly-owned subsidiary ('CarieScan'), of the Cariescan PRO (the easy to use hand held device for the early detection and monitoring of dental caries) in the USA and Canada, and based on an unexpectedly high level of interest in the Cariescan PRO outside of North America, CarieScan has expanded its marketing activities into the rest of the world. To date distribution agreements have been signed and announced covering UK, Germany, Austria, Switzerland, China and India, with a number of additional agreements anticipated within weeks.

Recently however, selling activity was temporarily impacted by a manufacturing defect, which has now been rectified. This has adversely impacted sales during the second half of the current financial year. The product has now been re-launched with a number of enhancements to address the requirements of the US market and is being actively marketed.

Evaluation of the PRO by respected industry commentators has been undertaken at a number of locations within the US and the product has received various plaudits including the award for "best dental diagnostic device 2011" from industry driver 'Dr Bicuspid.', This evaluation process is on-going and further positive outcomes are anticipated later in the year.

Greater sales support in US

In order to maximise the Company's presence in both the US and Canadian markets and to optimise the cost/resource balance, the Board expects to shortly enter into an agreement with an independent, highly experienced dental sales company, CoreStrength Inc, to provide national sales support in both the USA and Canada. As a consequence of the agreement the Company will have more than 20 sales support representatives covering the territory.

Outlook for current financial year

In the interim statement a degree of caution was expressed as the Directors were aware that it was still too early to predict with any accuracy the likely sales trends for the Company. The market's expectation for the Company's performance during the financial year to 30 June 2011 was to a large extent predicated on the Company receiving a significant product reorder from its distribution partner in the USA, Patterson Dental. As a result of the interruption to selling activity referred to above and slower follow-on sales than originally expected, Patterson has not placed the anticipated restocking order and as a consequence it is the Board's current expectation that revenues for the year to 30 June 2011 will now be in the region of £700,000, significantly below market expectations. Consequently the pre-tax loss for the financial year to 30 June 2011 is currently expected to be in the region of £2.4 million. The Directors believe that potential sales within export territories outside of North America over the balance of the calendar year could equate to some 60% of the US shortfall.

Cash balances at 30 April 2011 were £940,000 and the Company has undertaken a review of its cost base and has identified potential annual savings of in excess of £850,000 p.a. The Company is in discussion with various parties with a view to potentially strengthening its balance sheet.

With the re-launch of the Cariescan PRO and stronger sales support across North America, plus the addition of the positive (and previously un-anticipated) global opportunities for the product the Directors look forward to being able to announce a significant improvement in the Company's trading performance in the coming year.

ENDS

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Notes to Editors

3D owns the protected rights to a technology platform with a number of significant potential commercial applications. Its first product to market is the CarieScan PROtm.

The CarieScan PROtm measures the presence of tooth decay earlier and more accurately than any other device on the market and is more than 90% accurate in detecting both sound and carious teeth, well ahead of other methods. It detects "hidden" decay, providing dental practitioners with the opportunity to arrest or even reverse decay, driving the trend towards preventative dental care.

The lightweight caries detection monitor not only offers best-in-class performance for decay detection but also allows easy monitoring of the effect of treatment regimes to show decay advancement or regression, thus enabling dentists to tailor treatment to the needs of the patient at a low cost. The CarieScan PROtm consists of a hand piece and a disposable sensor which is held against the tooth being examined in a process which takes approximately 4 seconds per tooth with the result displayed on the CarieScan PROtm.