Trading Update

IndigoVision Group plc ("IndigoVision" or the "Group")

Trading Update

Since our interim results announcement in March, the Group's rate of growth has slowed. We continue to expect that full year sales will exceed last year's revenue of £28.0m, but that they will fall short of internal forecasts. As we indicated in our interim report, gross margins weakened marginally in the first half. This has continued into the second half and we now expect gross margins for the year as a whole to be some 2% lower than last year. As a result, we anticipate that group profits for the year to 31 July 2011 will be significantly below current market expectations.

The global market for IP video continues to develop at an encouraging rate, and we remain confident in IndigoVision's future, whilst being realistic about the risks and challenges which the group faces. In line with our normal practice, a further trading update will be issued immediately following the group's financial year end.

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IndigoVision is a leading manufacturer of end-to-end IP video security solutions for airports, ports, rail, traffic, cities, retail, banking, mining, education, casinos, police, prisons and government.

These enterprise-class systems improve organisations' operational efficiency, enhance public safety and enable timely emergency response. IndigoVision operates from six regional centres, in New Jersey, Sao Paulo, Singapore, Dubai, London and Edinburgh, each with training facilities and demo suites. With sales and support staff in 24 countries, IndigoVision partners with some 300 authorised system integrators to provide local system design, installation and service to end users.