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Date: Tuesday 07 Oct 2008

LONDON (ShareCast) - Mobile phone software specialist Psion said it will make a full provision in its 2008 accounts for claims made against it from trading partners of its Japanese arm Psion Teklogix KK (Psion Japan).

The group said in August that forensic consultants are investigating the claims amounting to JPY2,079m (£12m). The claims against the mobile computing and wireless data collection solutions unit refer to unpaid purchases and a guarantee of a third party's trading obligations.

“The court action may take several years to complete. As a result of the uncertainty of ultimate recovery, the company intends to make a full provision against the disputed receivables in its accounts for 2008 and will provide for estimated future legal expenses,” said the group.

“It will not recognise the value of any recoveries in its accounts until these are sufficiently certain,” it added.

One trading partner has now started an action in the Japanese court in which it is claiming a total of JPY1,504m (£8.6m). The group said it continues to deny liability for this and the other claims and will resist all of these claims vigorously.

In addition, Psion has trading receivables due from a number of the trading partners involved in these claims, which as at 30 June 2008 totalled JPY1,573m (£9.0m).

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