Trading Update

14 January 2013

PORTA COMMUNICATIONS PLC

TRADING UPDATE

The Board of Porta Communications Plc (the "Group") is pleased to provide a trading update for the year ended 31 December 2012:

·; trading ahead of management expectations

·; the Group has shown consistent growth throughout the second half with an exceptional end to the year

·; over £1m in annual fees of new business won across the Group in November and total revenues in the second half were more than 4 times higher than the total in the first six months

·; annualised revenues are now running in excess of £16m, a significant increase on the prior year

David Wright, chief executive of the Group commented:

"With all the main Advertising and Public Relations companies within the Group continuing to show strong revenue growth and all expected to be profitable in 2013, the outlook for the current year is extremely encouraging.

It was always the Group's strategy to build a solid base for long term growth by recruiting quality executives in start-up ventures, thereby avoiding huge goodwill payments, bolstered by income producing acquisitions where there was clear synergy with the core businesses.

Not only has this policy generated underlying shareholder value but it should also ensure regular earnings growth in the future as these start-up companies become more mature.

It is the Board's intention to maintain this strategy in the current year, particularly in the overseas development, where a number of exciting opportunities have been identified, either through acquisitions or start-ups. The first of these is our new public relations venture in Hong Kong which will also be our launch pad into mainland China."

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