Trading Update

RNS Number:1222C
Innovision Research&Technology PLC
07 October 2002





                      Innovision Research & Technology plc





                                 Trading Update



Despite the commercial progress announced in August, developments within the
Company's business over the past two weeks will result in turnover and
profitability in the current financial year to 31 March 2003 being significantly
below market expectations.  The principal reason for this setback has been
another extremely poor performance from our toy business, as a result of
manufacturing delays, project deferrals and cancellations. Toy revenues are now
expected to be insignificant in the current year.



The Company's non-toy business continues to build, and the level of new project
enquiries remains encouraging.  However, the cutbacks in new product development
and R&D budgets that currently pervade throughout the business world have also
affected our customers and resulted in lower than expected revenues in this
division.  Projects have been withdrawn or deferred by customers until the
outlook for the world economy improves.



In light of these setbacks, the Company will increase its focus on the
development of its Datalabel RFID products and other non-toy business, where a
number of significant opportunities are under discussion.  A full strategic
review of all business activities is being undertaken with the intention to
significantly reduce the Company's ongoing cost base as soon as practical.



Prudent cash management continues, and as of today's date the company's balance
sheet still contains #6m in cash, sufficient to take the company through to
profitability.







7 October 2002



ENQUIRIES:


College Hill                                           Tel: [phone]
Camilla Glen




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

TSTFSMFWLSESEIS