TAD Tadpole Tech.

RNS Number:0070T
Tadpole Technology PLC
15 March 2007


             Tadpole Technology plc ("the Company" or "the Group")


                    Update on Trading and Financial Position





On 27 January 2007, the Company announced its preliminary results for the year
ended 30 September 2006. In Note 2 to the financial statements, it was reported
that the Directors had prepared the financial statements on the going concern
basis. In order to satisfy themselves that it was appropriate to adopt the going
concern basis, the Directors had prepared cash flow projections to March 2008,
incorporating three key assumptions still to be achieved at the time of the
announcement and without which there would remain a material uncertainty as to
the future funding of the Group and its ability to continue as a going concern
and meet its liabilities as they fall due. These assumptions, based on the
reasonable judgment of the Directors, were as follows:


1)      Obtaining formal agreement of the contractual terms for the current work
stream of the Ordnance Survey GB ("OS") contract.


2)      Securing additional sources of funding by the end of March 2007, for
which the Directors were in advanced discussions.


3)      The need for supplementary funding by October 2007, for which the
Directors were evaluating the available options.


The purpose of this announcement is to provide an update on the status of these
assumptions, as follows:


1)      A new contract draft has been received from OS and negotiations on the
detailed terms are in progress.


2)      The licensing agreements with Microsoft and Citrix, announced today,
generate short-term cash inflows which remove the need for the Directors to
secure additional sources of funding by the end of March 2007 and will enable
the Group to report an improved operating result and stronger financial position
for the first half year. As a consequence, the Streaming Division will have
funds to invest in additional sales and marketing resources to pursue new
business opportunities. Given the typical sales lead times, there is likely to
be a delay of several months before the Division benefits from these incremental
resources. Until then, the timing of revenues is likely to be irregular.


3)      The need for and timing of any supplementary funding to finance the
further investments required to grow the business will depend on the operating
cash flows generated by the Group during the second half. The Directors will
continue to monitor the progress of the Group and to evaluate the options for
any additional funding that may be required.


Further updates will be provided as appropriate.



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

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