2007 The Doubler Thread for the Year Ahead

IGE Image Scan Holdings. 28.75p

Right place, Right time note the interest in USA.

PRE-CLOSE TRADING UPDATE
Strong trading and rapidly growing order book

The Board of Image Scan, a world leader in the field of real-time 3D and 2D
x-ray imaging for the 'Homeland Security' and 'Industrial Inspection' markets,
is pleased to provide shareholders today with a pre-close Trading Update,
highlighting continued strong trading at the Company on the back of its growing
order book and client portfolio. It is also pleased to announce that it has
received a welcome endorsement from the US Transport Security Administration
("TSA").

KEY POINTS

*2006 turnover anticipated to have increased by 70%;
*Significant reduction in losses expected;
*Order book increased five fold since year start;
*Endorsement of 3D technology from US Government's TSA;
*TSA contract extension worth over $100,000 secured; and
*Board confidence growing of move into profitability in 2007.

TRADING & CORPORATE UPDATE

The Board anticipates that turnover, for the year ended 30 September 2006, will
exceed #1.4 million (2005: #843,000), an increase of approximately 70%. The
corresponding loss before interest and amortisation is also anticipated to be
significantly reduced.

ORDER BOOK UP 600%

The order book at the end of September 2006 stood at #1.7m, a five fold increase
over the corresponding close in 2005. To fund the inevitable increase in cash
flow requirements attributable to this increased order book the Company has
negotiated deferment of the existing #200,000 loan to a new date of 31st March
2008 and an additional long-term loan for a further #200,000. Both loans have
warrants attached at 20p. Our long term strategic funding plans are now clear as
we move into profitability.

This considerable uplift in the order book stems from a series of new contract
successes including an order for Image Scan's innovative MDXi system - supplied
to a blue-chip international corporation for their plants in the UK and South
Africa - and a major #1m contract with British Nuclear Group Ltd ("BNG") for
in-line x-ray inspection systems; the latter due for completion by May 2008.

Sales of TPXi, the transportable, light-weight, security inspection device,
continue to grow with orders for a further 14 units being received in the last
three months. The Company is now confident that the distributors of the TPXi
systems will comfortably exceed their minimum sales targets.

The Directors believe that the on-going sales and significant improvement in the
order book will provide a sound platform for achieving profitability in 2007.

ENDORSEMENT: TRANSPORT SECURITY ADMINISTRATION

3DX-Ray Limited, pioneers of 3D x-ray imaging technology in both
baggage-checking security and industrial applications and a wholly owned
subsidiary of Image Scan, has received a welcome endorsement from the US
Government's security equipment regulator, the TSA. The TSA are the purchasing
authority for the USA transport sector.

The imminent release of a report on 3D x-ray imaging technologies by the TSA,
concludes that 3DX-Ray Limited's real-time 3D images provide significant
improvements in overall security when compared to conventional 2D x-ray baggage
inspection systems.

Detailed analysis of the results by the TSA demonstrated that the probability of
threat detection rates improved by over 10% when the bags were viewed with
3DX-Ray's 3D system.

EXTENSION TO EXISTING CONTRACTS

Further to the TSA endorsement, Image Scan is pleased to report that it has
secured an extension to an existing award with the Department of Homeland
Security ("DHS") and TSA for research and development into advanced 3D x-ray
systems for baggage inspection. The contract extension is valued at $100,000
over the next 12 months.

In this latest project the TSA will work actively with Image Scan in the
development of an advanced autostereoscopic 3D display that does not require the
operator to wear any special equipment, such as polarizing glasses, to view the
3D image. The new system will also be evaluated by the TSA and DHS to benchmark
it against conventional systems.

Nicholas Fox, CEO of Image Scan Holdings plc, commented: "We run a business
providing solutions, not just technology, to our customers. As the Company heads
into its closed period, the Board is delighted to provide news of the robust
current position of Image Scan and looks forward to reporting its Preliminary
Results in January."