Trading Statement

Flomerics Group PLC 13 July 2007 Flomerics Group PLC ("Flomerics" or "the Company") Pre-Close Trading Update Flomerics Group PLC, the global supplier of specialist simulation software for electronics and fluid flow simulation, is today providing a trading update in advance of its interim results for the six months ended 30 June 2007. Although the first six months of the year have been challenging, the Company continues to make progress in integrating the Nika business, building awareness of the Nika products in new markets and expanding its pipeline of opportunities. Through its expanded portfolio of products and additional selling capacity, the Company is well positioned to develop its business robustly. However, as indicated in the AGM statement, building this pipeline and translating the opportunities into sales is taking longer than had been expected. This is particularly so in the USA, where the Company has found the market weaker than in the previous year. Flomerics continues to see a very positive reaction to the Nika product range in those markets in which it has been introduced. It continues to build on cross selling opportunities of Nika solutions to existing Flomerics customers in the electronics sector and is seeing benefits as a result of having broadened its market beyond electronics. The directors expect the Company to report a loss in the first half of this year, because the costs of the investment in additional sales staff early in the year will not be offset by increases in revenue, which are flowing through more slowly than expected. The Company's results for the year will therefore depend even more than usual on performance in the second half. Moreover, forecasts for the Nika business are more difficult than for the traditional Flomerics business, because it involves more sales of new products and a shorter sales cycle. The Company's forecasting systems, which are well established for its traditional business, are therefore currently showing a range of possible outcomes for the year. The current market expectation is at the upper end of the range and, as indicated in the AGM statement, actions are being taken to improve performance and increase the likelihood of achieving this expectation. We will give clearer guidance on the outlook for the year in the interim report. The Company expects to announce its interim results for the six months ended 30 June 2007 in mid September 2007. Enquiries: Flomerics Group PLC: Gary Carter, Chief Executive 020 8847 3000 Chris Ogle, Finance Director 020 8847 3000 Conduit PR: Christian Taylor-Wilkinson 020 7429 6666 Oriel Securities Limited (Nominated Adviser): Andrew Edwards 020 7710 7600 This information is provided by RNS The company news service from the London Stock Exchange
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