DATONG PLC

("DATONG" or "the Group")

Annual General Meeting and Trading Update

DATONG PLC (DTE.L), the designer and manufacturer of advanced high performance intelligence gathering equipment, will hold its Annual General Meeting at 11.00 am today.  

Dean Blood, Chief Executive Officer, will provide the following statement on current trading:

"Despite the challenging economic climate, DATONG has performed well during the first half of the year with order intake and cash flow in the period ahead of management expectations. A number of important order opportunities carried forward from the last financial year have been successfully converted in the period, contributing to the Group's record total order intake for the period which is expected to be £5.0 million.

Regarding the patent infringement litigation the Group has been involved in, as previously announced, the current variants of the affected Third Party products have been found to not infringe the patent in question. The Group has resumed its sales activities for these products in all geographic markets, securing £1.8 million in associated orders during the period.  The Board is confident that continued success will be achieved with these products in the second half of the year. 

After a positive first quarter, orders in the Americas have slowed reflecting continued restrictions and delays in releasing budgets showing a total order intake in the period of £1.5 million from this market. The Rest of The World (ROW) markets, have performed strongly during the period, with £1.3 million in orders being secured, reflecting the investments made over the last 18 months in developing a successful presence in those markets. 

A number of strategic contract wins requiring development, international customisation and integration activities will not be converted into revenue in the current period. These orders will be converted in the second half of the year.  

The Group's growth strategy continues with sustained investment in R&D and its sales routes to market.  Encouraged by strong order flow, the Board has resumed its active consideration of potential acquisition targets.

Overall, the Board is committed to, and confident in, the implementation of its strategy and future direction and remains cautiously optimistic for the full year outlook."

The Group also announces that printed copies of its Annual Report and Accounts for the year ended 31 March 2009 were distributed to shareholders on Friday, 4 September 2009 and are available on the Group's website.

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Notes to Editors

DATONG PLC develops, designs and manufactures a range of advanced high performance intelligence gathering equipment, supplying defence, homeland security and law enforcement agencies around the world. Intelligence strength is playing an increasingly central role with its customers, supporting the fight against terrorism and organised crime. 

DATONG is headquartered in Leeds, United Kingdom. The Group has a wholly owned subsidiary in the United States with a sales and service office in Chantilly, Virginia. Its products are sold internationally into more than 25 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.

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

RNS news service provided by Hemscott Group Limited.