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SCOTTY Group plc

('SCOTTY' or 'The Company')

€8m Eurocopter contract

 Trading Update

SCOTTY Group plc is pleased to announce that it has received the firm contract for the serial roll-out of the Company's mission gear satellite communications systems on CH-53GA helicopters for the German Army, which SCOTTY has developed under its PV research and development programme for Eurocopter Deutschland GmbH ('Eurocopter').

The contract is for the supply of systems for 37 units, with a total value of approximately 8.4 million Euros. The first eight units are for delivery in the calendar year 2009, with subsequent deliveries spread over the following two years. 

SCOTTY's Chief Executive Officer, Kurt Kerschat, commented:

'We are delighted to have received this contract from Eurocopter, which demonstrates the success of the PV research and development programme. The serial roll-out of this equipment will form a significant contribution to our revenue for the next three years'

The Company also wishes to update the market on current trading.

In the Company's interim results announcement on 30 April 2009, we commented that the potential for new projects continues to broaden, with a further increase since January in the portfolio of projects advancing through the planning and negotiation phases, prior to being converted into firm orders. We also said that a number of significant projects were now approaching the firm order stage.

Once again, it is the timing of these projects that has been difficult to predict. The speed of conversion into orders has been slower than we expected in the current financial year, as a result of which it is now likely that our pre-tax profit for the current financial year will be less than last year.

The projects in question are not lost to competition or cancelled; they are merely delayed beyond the 2008/9 financial year-end and we anticipate a corresponding beneficial effect on next year's results. 

SCOTTY's Chairman, Rt Hon The Lord Trefgarne PC, said:

'Whilst the speed of conversion to orders means that less revenue than expected will fall this side of the financial year-end on 31 July 2009, nonetheless we are extremely pleased with the number of new projects that are in the course of negotiation and the positive progress being made on these contracts. 

'The contract for the Eurocopter PV equipment is the first of several significant project announcements that we expect to be able to make over the coming months, which is further testimony to the strength of SCOTTY's aero-certified video, audio and data communications systems.'

For further enquiries:

SCOTTY Group plc Kurt Kerschat, CEO Bryan Smart	020 7653 9850
Threadneedle Communications Graham Herring Josh Royston HB Corporate Ltd Imran Ahmad Rory Creedon	020 7653 9850 020 7510 8600

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