7 January 2008

                 Retec Digital PLC ("Retec" or "the Company")                  

                                Trading Update                                 

Retec Digital PLC, the Guided Selling specialist, today issues a trading update
for the six months to 31 December 2007. The business has continued to make good
progress with strong revenue growth based on demonstrated success with existing
customers, new products and new customers in the last six months. Trading
remains in line with management's expectations.

Operational Highlights

  * New trials are under way for Retec's Electrical product selector in Tesco
    and ASDA.
   
  * The number of Entertainment Xtra stores has increased to 187 Sainsbury's
    stores and 47 Tesco stores around the UK, and a new trial is under way with
    ASDA.
   
  * Completion of the Alliance Boots Advantage Card kiosks contract has taken
    the total number of installed units to 1,340.
   
  * Further substantial orders have been delivered to existing blue chip
    customers, including Argos.
   
  * Development of a new software platform, enabling digital download of music,
    films and videos via Retec kiosks, is progressing well.
   
Commenting on the period, John Cole, Chief Executive Officer said:

"We have continued the momentum from last year into this trading period and
have secured a substantial increase in turnover as we continue to near
profitability. Our balance sheet remains strong, and we have invested in
developing new product lines in the period to broaden the range of Product
Selectors we are able to take to market, with notable successes for Electrical
and Wine. We believe this is just the beginning of the range of Product
Selectors that we will soon be able to offer retailers to engage customers and
increase sales.

We are very excited about the future prospects of the Group as we move into
2008, as we look to grow the business substantially, both organically and
through acquisitions. We look forward to extending our 3rd party licensing
agreements and offering new and innovative Guided Selling solutions to major
retailers that will continue to broaden our presence within their retail
network."

Retec intends to issue its results for the six months to 31 December 2007
during the final week of February 2008.

                                   - Ends -                                    

For further information please contact:

Retec Digital PLC                                                01455 222260
                                                                             
John Cole, Chief Executive                                                   
                                                                             
Charles McKay, Finance Director                                              
                                                                             
Hogarth Partnership Ltd                                         020 7357 9477
                                                                             
Fiona Noblet / Ian Payne                                                     
                                                                             
Charles Stanley Securities (Nominated Advisor)                               
                                                                             
Mark Taylor                                                     020 7149 6000

Notes for Editors:

Retec Digital PLC provides retailers with Guided Selling packages designed to
engage customers and increase sales.

It already has systems installed in major retail chains including Sainsbury's,
WH Smith, Tesco, ASDA, Alliance Boots and Argos.

Flexible and versatile, Retec's solution can offer a mixture of advanced
products within its range. These include:

Entertainment Xtra - an in-store communications channel aimed at promoting home
entertainment products such as music, films, games and books. Other customers
include Sainsbury's, Tesco, ASDA and WH Smith.

Product Finder - used to locate any product within a store.

Guided Selling - a touch screen providing audio and visual information on
products at the point of sale. This has a variety of applications, for example
in wine and electrical goods.

Self Service - allows customers to perform a transaction using an in-store
terminal. Retec's product suite has the ability to top up a mobile phone, sell
mobile phone content (games, logos etc), purchase of gift cards and interact
with loyalty schemes. Current customers include Boots, Argos and Woolworths.



END



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