OMG plc ('OMG'), the group that delivers electronics and software products based upon 3-dimensional information contained in 'the moving image' to the entertainment, medical, scientific and engineering industries, is pleased to provide details of current trading.

Summary

Vicon
Whilst there are signs that some US entertainment customers may be deferring purchase decisions, there is strong and growing demand for motion capture from computer games developers and animation producers in the Far East and Europe, including the UK. During the summer months, Vicon mocap systems were sold for entertainment use in Japan, Korea, China, Germany, the US and UK, including new motion capture studios to service the London visual effects market.

Science and Engineering shows good progress and excellent potential. 'Virtual Engineering' is enjoying a major upturn as manufacturing industries seek to contain costs. Many large manufacturers now operate a policy that no physical prototyping is permitted until every possible function, including human interaction, has been thoroughly simulated. Through technical and marketing agreements with leading US and European CAD simulation software companies, Vicon is becoming the preferred means for driving VE avatars (human simulations). A $200,000 order has recently been taken from the US- based aero-engine conglomerate Pratt and Whitney, with similar contracts from other leading manufacturers in the pipeline.

Vicon's 'traditional' business of sales to medical and academic customers, including a steady stream of complete system upgrades, continues strongly in all territories.

2d3 Limited
2d3 commenced shipping its first product, boujou, the world's first fully automatic 'through-the-lens' camera tracker, in April 2001. Camera tracking is the basis of all visual effects shots, which can number many 100s in a single production like Tomb Raider or Harry Potter.

Industry reaction to boujou has been very positive, with the customers reporting substantial savings of time and cost. With 3D post-production costs running at $2k - $3k per 'seat' per day, it doesn't take long for boujou to cover its $10k price. 'boujou gave us great results very quickly. It's a brilliant piece of software' - Will Byles, Head of CGI at Aardman Animations.

High-profile marketing, including a substantial OMG presence at SIGGRAPH a major US tradeexhibition in Los Angeles, has led to requests for the boujou demo CD (a fully functional version with disabled output) at a current rate of over 1,000 per month. Having focused initial sales in London and Los Angeles, 2d3 has now appointed distributors in all major centres of post-production around the world.

Staffing
At the time of the company flotation earlier this year, OMG focused on the need to expand personnel to exploit new market opportunities. In the past, recruiting top-quality sales staff has proved difficult. However, recent weaker conditions in other industries have allowed both the UK and US offices of Vicon and 2d3 to appoint staff with highly relevant experience.

Outlook
With increased uncertainty in world economic conditions, the Company is planning prudently for the year to 30th September 2002. Nevertheless, the present outlook indicates a continuation of OMG's exceptional record of growth.

OMG will make a full financial report for the year to 30th September on Tuesday 4th December, 2001.

For further information, please contact:

Julian Morris, Chief Executive, julian.morris@omg3d.com
Tel: 01865 261800

Tim Thompson, Buchanan Communications
Tel: 020 7466 5000