25 June 2008

Further to the announcement made on 29 May 2008, the Company confirms that discussions continue regarding a potential offer for the business (in whole or in part). However, the Board believes that its aim of preserving and maximising shareholder value will be best achieved by means of a refinancing of the business through the injection of fresh equity. The Board is therefore in discussions with its advisers concerning such an equity issue and is seeking to raise £5 million (net of expenses). Shareholder approval will be required for such an issue to become effective and a further announcement will be made as soon as is practicable.|

The Group's bankers have agreed to extend the Company's working capital facility to enable the refinancing to be completed. It is proposed that approximately £1.25 million of the net proceeds of the proposed fundraising would be utilised to repay this facility, leaving the Company with a £2.0 million term loan and cash on its balance sheet to finance projected growth.

In the year to date the Company has traded well, with net debt below projected levels and a strong order book, having recently won two orders worth in excess of £2 million over and above those previously announced. The Company currently has order coverage for over 85% of management's expected revenue for this financial year.

Under the AIM Rules, a company that does not publish its Report and Accounts within 6 months of the year end will have its shares automatically suspended. The Directors expect that the Company will not be able to sign off on the Company's Report and Accounts for the year ended 31 December 2007 until the completion of a placing of new equity and that the Company will not be in a position to announce a proposed equity refinancing, if successful, until the latter half of July. Therefore, the Company is not in a position to publish its 2007 Report and Accounts by 30 June and the Company's shares will be suspended immediately following publication of this announcement, pending publication of those Report and Accounts.

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