Trading Update

RNS Number:5857J
Imagesound PLC
11 December 2007


                                       

11 December 2007

                                 Imagesound plc

                                 Trading Update


Imagesound plc (AIM: ISD.L), the UK's leading listed supplier of in-store music,
radio and TV services to the branded retail and leisure sector, today announces
an update on trading for the year ended 31 December 2007, prior to entering its
close period. Preliminary results will be announced on Monday 3 March 2008.


Since the interim results in September, Imagesound has continued to make good
progress. Roll-outs and upgrades have been completed on the contracts secured
with Internacionale, East and GAP, and further renewals have been secured with
Phase 8 and Poundland. Imagesound is pleased to announce today that it has
secured a new contract with Swarowski, the crystal products retailer, to roll
out an audio service to 45 of its stores in the UK. In addition the Company has
recently completed a video service roll-out for a new JJB concept store in the
Trafford Park Centre, which involved the installation of 25 screens. The success
of this concept has encouraged JJB to award a further store to Imagesound, with
the potential for further roll-outs in 2008.


The roll-out to the Marriott and Rezidor hotel chains is progressing but has
experienced some delay as a result of logistical issues in certain locations. It
is anticipated that the 175 site worldwide roll-out programme will be completed
by the year end, but the delay has resulted in a slower release of deferred
income than expected. Despite this, and the loss of two UK leisure contracts in
Q4, the Board expects that EBITDA for the year ended 31 December 2007 will be in
line with its expectations.


The business continues to make strong progress in its international expansion
and revenues from international business and the pipeline of future
opportunities outside the UK market continues to expand. The Group is currently
examining potential new trading partnerships within Europe in order to offer a
fully integrated European service to its international clients and the Board
expects to make a further announcement on its international partnership plans in
due course. As previously announced, Imagesound opened a sales office in
Vancouver in October to serve the core North American hotel market and this will
become fully operational in January 2008.


Imagesound continues to rapidly evolve as a business. The Company has an
impressive client list and an exciting pipeline of new opportunities, both in
the UK and internationally. Its international expansion through the acquisition
of Musicstyling.com has substantially increased the potential of the Company in
outlying areas as far as Hawaii and Moscow and has created an increasingly
substantial business in Dubai. In order to fully capitalise on these
opportunities, the Board has taken the decision to re-define and re-focus the
scope of the executive management team's roles. Derek Mapp, Executive Chairman,
will continue to be responsible for the strategic direction and acquisition
strategy. Michael Clark, Managing Director, will become Managing Director of UK
& Worldwide Sales, and Ken Pratt, formerly Finance Director, will become
Managing Director of Operations & Finance with immediate effect. These changes
should enable clearer reporting structures within the business.


Notwithstanding general market concerns around consumer spending and the
possible impact this might have on our customers' store investment plans, the
Board remains confident in the outlook for the business in 2008 and beyond.


                                    - ends -



For further information:

Imagesound plc
Derek Mapp, Executive Chairman                     Tel: [phone]

Collins Stewart
Seema Paterson/Lorraine Delannoy                   Tel: [phone]

Hogarth Partnership
James Longfield/Sarah Richardson                   Tel: [phone]





Notes to Editors


Imagesound is the UK's leading listed supplier of in-store music, radio and TV
services. It provides music and messaging services to over 50 leading branded
retail and leisure chains reaching over 17,000 subscriber outlets.


Customers include Superdrug, B&Q, Foot Locker, Carphone Warehouse, McDonald's,
Subway, Next, Focus, Starbucks, River Island, O'Neill's, Pizza Express, Hyatt,
Starwood, Marriott and JJB.


Imagesound will shortly be celebrating its 10th Anniversary. During this time
the business has evolved from a small, UK based company, to an international
player with an impressive global client list. Imagesound floated on the AIM
market of the London Stock Exchange in August 2004. Since this time the Group
has embarked on an organic growth and acquisition strategy and has made six
acquisitions in the sector. The latest acquisition of TSC acquired in July 2007
was fully integrated within 6 months, and added names such as Starbucks, Cafe
Nero, Alliance & Leicester and GAP to the client list.








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