COE Group plc - Trading statement

13 Jun 2007

The Company today announces a trading update for the six month period ending 30 June 2007.

In recent weeks, COE has experienced difficulties in obtaining adequate supply of a number of its products due to issues affecting one of the Company's three contract manufacturers. The Directors of COE had already started to reduce the Company's dependence upon this supplier, however, it is anticipated that the Company will continue to experience delays for a short period of time. An update on the supplier issue will be provided in the Company's preliminary results.

Accordingly, it is anticipated that turnover will be lower and the operating loss will be greater than the prior period ending 31 December 2006, however, it is expected that the operating loss for the 12 month period ending 30 June 2007 will be reduced compared to the corresponding period ending 30 June 2006.

COE raised further funds in March 2007 to recruit additional sales-focused staff in order to capitalise on the anticipated growth in the global CCTV market. The Company is pleased to report that it is ahead of its recruitment plans and expects that additional sales employees will be starting in Asia and Europe during the course of this month. Gross margins achieved from new product orders have also started to improve as a result of product re-engineering and increased management focus. Accordingly, the Board continues to look forward to the medium to long term future with confidence.

Enquiries:

COE Group plc 0113 230 8862
Andrew Wallace, Chief Executive Officer
Ian Jefferson, Finance Director

KBC Peel Hunt Ltd 0207 418 8900
Oliver Scott
Nicholas Marren