CITE Ls 2x Citi

RNS Number:6082S
Citel PLC
18 April 2008


                                                                   18 April 2007

                                    Citel plc
                           ("Citel" or the "Company")

                                 Trading Update


Citel, which designs, develops and markets a range of Voice over Internet
Protocol (VoIP) solutions for the business telephony market, today reports on
trading for the financial year ending 31 March 2008.

For the 12 months to 31 March 2008, revenues are expected to be US$4.68 million,
an increase of 5% from the US$4.48 million reported in the prior year.

Citel's business model is based on signing supply agreements with
telecommunication carriers and internet service providers, enabling them to
offer Citel's Portico Telephone VoIP Adapter ("Portico TVA") as part of their
VoIP solutions. In addition, Citel sells direct to large/medium size
enterprises.

During the financial year, Citel secured supply agreements with multiple Tier 2/
3 carriers. These contract wins have served to underline the potential of
Citel's Portico TVA product within the smaller carrier space. The pipeline of
opportunities with these carriers continues to grow.

Citel continues to target sales directly to large/medium sized enterprises and
has achieved traction in this area. Direct customer relationships with these
enterprise clients enables Citel to drive more immediate revenue, and
importantly, demonstrate to the carriers the practical and commercial benefits
of the Portico TVA product operating within large enterprises.

At 31 March 2008 Citel had a net cash balance of US$162,000 and an additional
borrowing ability of approximately $160,000 (the facility is based on a
percentage of receivables so will vary over time). As a result of expense
reductions previously announced, the Company's expected monthly cash burn rate
for the next three months has been reduced to average approximately $75,000 per
month. Whilst progress has been made in reducing the burn rate the Directors
note that additional funding will be required in order to reach cash flow break
even. The Directors continue to consider options with a view to maximising
shareholder value and will make further announcements as appropriate.



The contents of this Press Release may contain forward-looking statements which
can be generally identified as such because the context of the statement will
include the words such as Citel plc "expects", "should", "believes",
"anticipates" or words of similar import. Such forward looking statements are
subject to certain risks and uncertainties including the financial performance
of Citel plc which could cause actual results, performance or achievements of
Citel plc to differ materially from any future results, performance or
achievements expressed or implied by such forward-looking statements. Readers
are cautioned not to place undue reliance on these forward-looking statements.

This Press Release does not constitute or form any part of any offer or
invitation to sell or issue or any solicitation of any offer to purchase or
subscribe for any securities in any jurisdiction, nor shall it (or any part of
it) or the fact of its distribution form the basis of, or be relied upon in
connection with, or act as any inducement to enter into, any contract or
commitment therefore.

Copyright 2007, Citel plc. All Rights Reserved.

Citel and The VoIP Migration Company are trademarks of Citel Technologies, Inc.
All other product and company names mentioned herein may be trademarks of their
respective owners.





Enquiries:

Citel 
Jose David, CEO 001 206 965 8925

Panmure Gordon 
Dominic Morley +44 (0)20 7459 3600
Giles Stewart
Andrew Collins







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

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