RNS Number:9573D
Cellcast plc
02 June 2006


Press Release                                                        2 June 2006


                                  Cellcast plc

                         ("Cellcast" or "the Company")

                                 Trading Update


Cellcast plc (AIM:CLTV), a global interactive digital broadcaster, today
provides a trading update for its current financial year ending 31 December
2006.


The recent changes to the listings of channels by Sky Digital (altering the
location of the Company's channels on Sky's Electronic Programme Guide 'EPG')
and the delay in revenues arising from some of the Company's international
investments has had a negative impact on the Company's performance. The Board
anticipates that the market forecasts for the current financial year will not be
met.


Turnover for the year is expected to be below market expectations as a result of
the delays in the revenues from the Company's international projects. However,
turnover in the UK is robust and is significantly ahead of the same period last
year but profitability has been impacted by the EPG reorganisation which has
created scheduling inefficiencies and has made navigation difficult for the
regular viewers of the Company's programmes.


As a result the Board anticipates that the Company will show a loss before tax
for the current financial year.  This revised expectation does not take into
account any possible earnings from its programmes on the Freeview platform as it
is too early in the implementation process to assess what these might be.


The Board has already taken positive steps to address the issue of Sky Digital's
EPG reorganisation.  The Company has introduced new formats, redeployed
bandwidth and has increased marketing of all its channels to help viewers locate
them on the EPG.  In addition, the Company has reduced production costs as well
as operating expenses which will provide significant cost savings going forward.


Despite the reduced expectation for the current year the Board remains confident
of the growing international and domestic demand for the Company's proprietary
products and services which is already proven in multiple markets.


                                    - Ends -


For further information:

Cellcast plc
Andrew Wilson, CEO                                     Tel: +44 (0) 20 7190 0300
andrew@cellcast.tv                                               www.cellcast.tv


Daniel Stewart & Company Plc
Lindsay Mair / Marc Young, Corporate Finance           Tel: +44 (0) 20 7776 6550
marc.young@danielstewart.co.uk                           www.danielstewart.co.uk


Media enquiries:

Abchurch
Henry Harrison-Topham                                  Tel: +44 (0) 20 7398 7700
henry.ht@abchurch-group.com                               www.abchurch-group.com



Notes to Editors:

Cellcast plc


Cellcast plc is a leading international provider of participation television
applications and interactive mobile content in the fast-growing multi-platform
digital entertainment sector. Headquartered in London, with associated
operations in Paris, Beirut, Mumbai, Hong Kong and Buenos Aires, Cellcast's
applications and programming are distributed on the Sky Digital platform in the
UK and broadcast partners include Canal+ in France; STB in Ukraine; Future TV,
Dubai Television and Rotana TV in the Middle East; Zee TV and Star TV in India;
TVS-3 in China; Telefe in Argentina; and TeleAmazonas in Ecuador.


Cellcast's revenues streams are independent of both advertising and subscription
fees. With a network of revenue sharing agreements with telecommunications
carriers and aggregators across five continents, Cellcast receives a share of
the call revenue every time a consumer uses a mobile or fixed-line phone to
participate in its interactive entertainment, revenue which is retained or
shared with its broadcast partners. Cellcast's programme formats and proprietary
Interactive Platform (CIP) also facilitate delivery of content to mobile phones,
the internet and broadband-delivered IPTV. This enables viewers to continue
participating in a programme away from the TV, generating 24/7 revenue
opportunities. In May 2006, Cellcast announced the launch of a range of new
interactive entertainment services on Freeview's digital terrestrial television
(DTT) platform in the UK which included a breakthrough in interactive TV
technology.


Cellcast plc joined the AIM market (AIM) of the London Stock Exchange on 21
September 2005.

                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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