DATONG PLC

("DATONG" or "the Group")

Trading Update

DATONG PLC (DTE.L), a leading provider of covert intelligence gathering solutions, today announces the following trading update for the financial year ended 30 September 2011.  

The Group has continued to perform in line with the trading update of 3 August 2011.  The Group's Own Products business has performed well during the year, particularly in the core USA market and has also delivered a strong performance in certain Rest of World markets, which together are expected to result in a revenue growth for Own Products of around 23% compared to 2010. 

However, as noted in the August 2011 trading update, the Group's Third Party Product business is expected to show a significant reduction on last year across all territories, as a number of customers were fulfilled by projects last year and consequently have not placed orders this year.

As a result of these factors, management expects full year revenues to be circa £11.7 million compared to £14.1 million last year and the Group to report a small loss for the year.   As at 30 September 2011, the Group had net cash of approximately £1.3 million.

The Group is pleased to report that good progress is being made on the appointment of a new Chief Executive Officer and a further announcement is expected later this month.

With DATONG's positioning in the international intelligence gathering market and continuing investments in new product development and routes to market, the Board is confident of future profitable growth.

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Notes to Editors

DATONG PLC provides a range of advanced high performance covert intelligence gathering solutions, supplying defence, homeland security and law enforcement agencies around the world.  Intelligence strength continues to play an increasingly central role within governmental agencies and police forces, supporting the fight against terrorism and organised crime.

DATONG is headquartered in Leeds, United Kingdom and employs 95 staff. The Group has a wholly owned subsidiary in the United States, DATONG Electronics Inc., with a sales and service office in Chantilly, Virginia. DATONG's proprietary products (as well as Third Party products) are sold internationally into more than 37 countries using both the Group's direct sales force and a network of independent overseas distributors. 

DATONG (DTE.L) listed on the AIM market in London in October 2005 and is included in the FTSE Electronic Equipment sector.  Group revenue for the 12 months to 30 September 2010 increased 80% to £14.06 million (2009: £7.82 million).

Further information on DATONG PLC can be found at www.datong.co.uk