Trading Update

14 June 13

Tracsis plc

Trading update

Tracsis Plc is a leading provider of software and
technology led products and services within the transportation industry, traffic
and pedestrian rich environments is pleased to provide an update on current
trading and developments across the Group.

Acquisition of Sky High plc ("Sky High")

Integration of Sky High is underway and progressing
well. The acquisition was incorporated into the wider Group's trading as of 17
April 2013.  The elimination of surplus PLC related overheads combined with
other immediate synergies has enabled both cost savings and performance
improvements.  This has led to an enhanced operating margin for Sky High and
management expectation is that the newly acquired business will make a good
contribution to the Group's overall performance for the period to 31 July 2013.

Condition Monitoring

This area of the business has performed extremely well during the
current financial year, and has secured strong orders from outside of the
framework agreement.

The Group is currently involved in negotiations with a major
customer to continue the next phase of a significant Framework Agreement for its
condition monitoring technology. The timing of the prospective contract
extension indicates that potential major orders for the Group are expected in
late 2013 or early 2014, assuming successful renewal. A further update will be
provided in due course.

Rail market at large

The Group welcomes the recent developments within the
rail industry regarding the lifting of the embargo on UK rail re-franchising.  A
new franchise bidding timetable has been released by the Department of Transport
and this presents a very busy period of work for the entire industry which will
commence imminently.  Tracsis has entered into a long term agreement with one of
the major operating Groups for retention of its consultancy and software
services, and expects to work with most of the other bidders in varying
capacities.  Looking ahead, the next few years should be a period of stability
in the consultancy and software offering and allow the Group to invest in a
broader range of products and services.


The Group is pleased to announce that revenues for
the year ending 31 July 2013 are forecast to be in excess of £10m and underlying
profits are in line with previous market expectations.

Following the acquisition of Sky High, the Group's
cash position is c. £6m. Tracsis continues to aggressively manage costs and has
maintained a prudent approach to how it undertakes investment decisions.  The
business remains debt free, actively manages cash reserves and remains committed
to a strategy of delivering shareholder value through a combination of
acquisitive and organic growth.

John McArthur, Chief Executive Officer commented:;

"The progress made since the acquisition of Sky High
has been very pleasing and we are excited by the opportunities presented to us
in the new markets using technology and services familiar to us."

"We look forward to updating the market in due course
on further developments, and in concurrence with the positive industry
indicators, we will work to drive further shareholder value through organic
growth and acquisition."

For more information please contact:

John McArthur/Max Cawthra, Tracsis
Tel: 0845 125 9162

Katy Mitchell, WH Ireland Limited
Tel: 0113 394 6618