RNS Number:1458P
Photo-Scan PLC
29 August 2003

Photo-Scan plc - Trading Statement

Earlier this year, Photo-Scan announced a new business strategy to concentrate
on higher value technologies and longer-term client partnerships in certain key
markets in order to improve the long-term quality and profitability of its
operations.

The Board stated at the time that the implementation of this strategy during
2003 was expected to lead to a short-term reduction in both turnover and profit.
It has become clear, however, that the implementation process and the
complexities of major new contract negotiations will take longer than was
originally expected.  The immediate effect of this is that profit for the six
months ended 30th June 2003 will be materially lower than current expectations.

It is too early to assess the impact of this on the full year.  We are currently
negotiating a number of major contracts with blue chip clients that may have a
significant effect during the second six months and, if successfully concluded,
will certainly have major implications for revenue streams in future years.

We are encouraged by our progress to date with the new strategy and we remain
confident that in the longer term this will improve the quality of the business
and enable us to maximise shareholder value.

Despite the reduced short-term profitability the company still has a strong cash
position and the Board intends to at least maintain the current level of
dividends as a sign of confidence in the future of the business.

The company intends to release its interim results for the first six months of
2003 on 12 September.

For further information please contact:

Peter Hawksworth, Chief Executive             Barrie Newton, Rowan Dartington
Tel: 01932 898570                             Tel: 0117 933 0011


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