Trading Statement

Bright Things plc
20 July 2004



                               BRIGHT THINGS PLC

                                 TRADING UPDATE

                                                                    20 July 2004

Bright Things plc ('Bright Things' or 'the Company'), developer of educational
games console and software for the pre-school market, issues a trading update
for the period to 30 June 2004.

The Company was formed on 8 March 2004, and its shares were admitted to AIM on
30 April 2004. This update includes the results of Bright Entertainment Limited
(a wholly owned subsidiary) for the period 1 January 2004 to 30 June 2004.

The board is pleased with progress made to-date and remains confident that the
group's goals of developing a console, licensing characters for the games and
the subsequent development of the games, will be achieved in line with
expectations.

The agreement with BBC Worldwide (which saw BBC Worldwide becoming a shareholder
in the Company) was announced on 10 May 2004, providing access to premier
children's brands. The Company has secured the Rights to develop products for
its platform, based on a portfolio of BBC Worldwide brands including popular
characters such as the Teletubbies, Tweenies, Fimbles and Balamory. As part of
this deal Bright Things has taken in house an award winning dedicated specialist
development team from BBC Worldwide which has commenced working on the first
software titles.

The Company is encouraged by the growth in the pre-school market and the
movement towards educational interactive entertainment. The Directors believe
that their product is ideally placed to take advantage of this segment.
The company raised £3.93 million, after expenses, at the time of admission to
AIM; net cash at 30 June 2004 was £3.22m which is in line with expectations.

Bright Things expects current business activity to continue in line with
expectations.

The Company intends its year end to be 31 March, with its first annual results
to 31 March 2005. The first interim results will be prepared to 30 September
2004 and are anticipated to be announced in early December 2004.






ENDS

For further information please contact:

Bright Things PLC
Dominic Wheatley, CEO                  07976 295071
Matthew Tims, Publishing Director      07976 740397
Giles Croot / Mark Antelme,            020 7404 5959
Brunswick


NOTES FOR EDITORS:

Background on company

THE BUSINESS

Bright Entertainment was formed in June 2002 by Dominic Wheatley and John
Kavanagh, the inventor of the technology, to develop and exploit the prototype
interactive educational children's console.

The Group will initially have three key aspects to its business:

   • the development and manufacture of the console;

   • the licensing of characters that will form the basis of the games; and

   • the development of games to be played on the console.

So far as possible the Group will outsource the design and manufacture of the
hardware and instruct third party games developers to create the games. The
principal role of the Group will therefore be the ownership of the Intellectual
Property relating to the system and the marketing and distribution of the
system.

THE MARKET

The UK toys and games market totalled £1.86 billion in 2002. This excludes the
video and computer games market worth £2.05 billion and sales of children's'
video and DVD. The largest sector of the UK toys and games market, infant and
pre-school toys, has registered above average growth between 2000 and 2002.

Fuelling this market is the effect of the growing amount of money being spent on
children at this age. The result is that many toys and games bought for the
infant sector are increasingly more sophisticated than was the case a decade
ago, leading to more expensive purchases generally.

The last decade has seen the expansion and development of the video and computer
games market. In the opinion of the Directors, this market is predominantly
aimed at teenagers and young adults. The Group has developed a platform that is
targeted at the pre-school market.

The Directors believe that the pre-school market offers a significant business
opportunity for the Group. The Directors believe parents are looking for
products that provide both enjoyment and education for their children. The
current games platforms are unsuitable as they are generally too complicated to
be operated by young children and often have inappropriate content.

The Directors believe that the Group has the opportunity to establish the
product as a leading platform within the early learning interactive console
sector. Products based on popular characters aimed at pre-school children are an
established route into this market. The Group intends to develop interactive
educational entertainment DVDs for the platform, harnessing the power of these
children's brands.

DIRECTORS

Ian Livingstone, aged 54, Non-Executive Chairman, has been in the interactive
games industry for over 25 years. In 1975, with Steve Jackson, he founded Games
Workshop and launched Dungeons & Dragons in Europe. In 1982 he co-authored the
first of the multi-million selling Fighting Fantasy Game books. He has published
games magazines and has had several of his own games published. An early
investor in Domark, he joined the company in 1992. When, in 1995, the company
was reversed into Eidos, he was appointed Executive Chairman of the new group
until 2002. He has helped Eidos secure many of its major franchises, including
Tomb Raider. He is presently Creative Director of Eidos.

Dominic Wheatley, aged 44, Chief Executive Officer, worked in an Advertising
Agency before co-founding Domark in 1984, a video games company that he later
reversed into Eidos. In 1992 Dominic established Domark's US subsidiary in
California. The company changed its name and Dominic served as CEO of Eidos
Interactive until 1997. He then became an investor in various companies, some of
which he joined as a director and helped float on the London Stock Exchange
(Statpro, Kuju and Telecom Plus). He is Chairman of Highway Capital plc, and has
commercial interests in France. Dominic has day to day responsibility for the
management of the Group.

John Kavanagh, aged 36, Chief Technical Officer, is the inventor of the device.
As an Executive of Eidos Interactive, John served as Vice President of
Development of Eidos US Inc. (a wholly owned subsidiary of Eidos) then as group
Publishing Director. After three years in this role he then ran Eidos's US
Studios including Ion Storm and Crystal Dynamics. John is responsible for the
continued development of the platform and he is currently based in the US where
he also runs the US office of the Group.

Matthew Tims, aged 43, Publishing Director, is responsible for all commercial
exploitation of the device, negotiating publishing and licensing contracts with
high profile license holders. Matthew has 21 years of experience in computer
software publishing through previous positions with Palace Software and Domark.
Prior to joining the company, Matthew was Chief Executive at Two Way TV, a
company specialising in interactive television. Matthew is responsible for the
acquisition of licenses and development of software for the platform.

Adrian Moores ACA, aged 31, Finance Director, qualified with Critchleys, an
18-partner practice in Oxfordshire. He then joined KPMG and specialised in
advising software and hardware companies. He was a finance manager for Unipart
International, the sales and marketing division of the Unipart Group of
Companies. He spent three years as European Financial Controller for 3DO, a
video games publishing company. He then worked with Crunchwell advising start up
and entrepreneurial businesses. Adrian is responsible for the financial function
of the Group.

Charles Fairbairn ACA, aged 42, Non-Executive Director, has many years'
experience in the media sector and in growing entrepreneurial companies. At
Pearson plc, he worked as Finance Director of Pearson New Entertainment, a
start-up division with interests in computer publishing, and as Group Chief
Accountant. Pearson New Entertainment Limited was sold in 1998 to Apax Partners
for £142 million. Since then he has provided advice to small and growing
companies. He is also a non-executive director of Statpro Group plc and Finance
Director of Advance Capital Invest plc, both AIM listed companies




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