Trading Update

Electrical Geodesics, Inc.

Trading Update

EUGENE, OREGON, US, 23 July 2013 - Electrical Geodesics, Inc. ("EGI" or the "Company"), a leading neurodiagnostic medical technology company, today provides a trading update for the six months to 30 June 2013 following the Company's admission to AIM on 3 April 2013. All figures are reported in US$ and are unaudited. 

Revenues for the six-month period were $5.4m, some 7% lower than the $5.8m recorded in the same period last year. Revenues for the year to December 2012 were $12.5m. 52% of the revenues in the first half of 2013 arose from sales of complete dEEG systems with the balance from peripheral devices, software and support. 43 systems were shipped in the period, 33 of which were to new customers with around half of revenues arising in the US.

The slight decline in revenues over the same period in 2012 was due to a number of factors. The Company's revenues remain strongly influenced by sales to neuroscience researchers. Capital equipment purchasing by research institutions has been impacted by the US federal budget sequestration, with, for example, the influential NIH reporting a 5% cut to its funding, which has resulted in delays in finalising grant awards. Additionally, the IPO activities resulted in slight delays in both the launch of new products and the strengthening of the sales channel.

The Company expects sales to accelerate in the second half of the year following the recent launch of the next generation, CE-marked, GES400 series of systems which are available for research use globally and for which the application for 510k clearance for clinical use in the US has been filed with the FDA. In addition, the imminent launch and anticipated regulatory clearance of EGI's NetStation 5 software will offer both new and existing customers an improved workflow for both research and clinical EEG studies that is both fast and intuitive.

The progress in penetrating the larger clinical market remains positive. During the first half sales of dEEG devices to leading epilepsy centres in Europe and China where the use of the Company's technology in planning epilepsy neurosurgery is increasing, have been particularly pleasing. Initial interest from potential clinical customers through the previously announced Premier Healthcare Alliance purchasing agreement in the US has been encouraging. However, the impact of this opportunity will not be felt until the GES400 series and the entry level GES405 in particular are approved for sale for clinical use in the US. The Company also intends to launch a series of additional modules and features to its product range in the coming months in order to present a more complete product range to the clinical customer base, while maintaining its R&D focus on the more advanced products of interest to its core research customers and to the new neurosurgery planning market.

Don Tucker, PhD, Chairman and CEO, commented: "Our customers are pleased with EGI's progress, including the newly-launched GES400 products, the alliance with Hitachi in near-infrared spectroscopy and by the strong investments we are making across all areas of the company. With a strengthened balance sheet from the funding from the IPO and an increasingly compelling product portfolio we are confident the building blocks are now in place to deliver an increase in revenues for the full year and beyond, and to build the foundation for long term growth."

Full Interim Results details will be announced on 4 September 2013.

For more information contact:

About EGI

Founded in 1992, EGI designs, develops and commercialises a range of non-invasive neurodiagnostic products used to monitor and interpret brain activity based on its proprietary dense array electroencephalography ("dEEG") platform technology. The Company's technology uses up to 256 sensors, providing much higher resolution brain activity data compared to conventional 8 or 16 channel EEG and is used in medical, clinical and research settings in a diverse range of applications including important areas such as the diagnosis and monitoring of epilepsy, neurosurgical planning, sleep assessment, and many others.

EGI's dEEG systems, available in the GES 300 and now the GES 400 lines, capitalize on the Company's unique Hydrocel Geodesic Sensor Net which allows faster, easier, and more convenient placement of many EEG sensors in an even distribution over the entire scalp, providing more accurate and precise diagnosis and measurement. EGI's technology is now widely used in neuroscience research laboratories and is becoming more commonly used in clinics, care centers, and hospitals around the world. Data is measured and visualised using EGI's proprietary amplifier technology and software, providing a complete, advanced, high-resolution EEG platform. The Company's products are compatible with multiple diagnostic and imaging technologies, including magnetic resonance (MR) imaging, functional MRI (fMRI), and magneto-encephalography (MEG).

In April 2013 EGI commenced trading on the London Stock Exchange AIM market under the symbol EGI.L. See www.egi.comfor more information on the Company.