ALG

AUTOLOGIC HOLDINGS PLC

Trading Update

The Board of Autologic Holdings plc ("Autologic"), the leading supplier of support services to the automotive industry, today announces the following trading update.

The automotive marketplace continued to benefit during the second half of 2009 from the effect of the UK Government's vehicle scrappage scheme. Approximately 280,000 additional new registrations took place in the UK as a result of this scheme, the majority of which were in the second half of the calendar year. As a result, trading in the UK marketplace during the second half of 2009 has been stronger than had been anticipated at the time of the Interim Announcement. The Board of Autologic consequently expects that the pre-exceptional profit before tax for the 12 months to 31 December 2009 will be materially better than current market expectations.

The UK Government has announced that the scheme will finish at the end of February 2010. As the Board indicated at the time of the Interim Results announcement, the ending of the scheme could have an impact on 2010 new car registrations. The degree to which our activity levels are affected depends on the extent to which the scrappage scheme has merely brought forward consumer demand, as opposed to creating a new market. However, the Society of Motor Manufacturers and Traders Limited ("SMMT") has indicated that the most likely outcome in 2010 is that consumer demand in the UK for new vehicles will soften.

Due to the continuing uncertainty in the automotive market place and the general economic environment, whilst the Board is pleased with the positive results of the business operations, it remains cautious about prospects for 2010.

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