IMTE I-Mate

RNS Number:9295E
i-mate plc
02 October 2007


For immediate release                                             2 October 2007


                                   i-mate plc

                                Pre Close Update

i-mateTM (London AIM: IMTE), the specialist in Microsoft Windows Mobile devices
and software applications, today issues the following update for the six months
ending 30 September 2007.

"The Company continues to make steady progress with sales anticipated to be
slightly ahead of market expectations, with underlying trading-related pre-tax
loss in line with market expectations. The Group's cash position stands at a
healthy US$54 Million.

The first two devices from the Ultimate range of products were launched at GITEX
in September and were extremely well received. A further two Ultimate devices
will be launched at CTIA in the USA later this month. The quality test programme
that we implemented is ensuring that i-mate delivers only the highest quality
products, but has resulted in a two month delay to the originally planned launch
of the Ultimate device range. However, we expect these devices to start shipping
in volume during this quarter.

The Company is focusing on key product ranges and after a further review of the
planned new product lines, it was determined that the Urban line of devices
would not meet the stringent quality tests now in place in time to penetrate
their target markets . Therefore, the Urban range has consequently been
cancelled.

To further strengthen the overall quality and efficiency of the i-mate service
we are bringing in- house the previously outsourced aftermarket service
management provided with every device.

Given these changes and the evolution of the business model, certain
non-recurring charges to the P&L will be taken with respect to the writing down
of historical stock, the expensing of costs in relation to the cancelled Urban
product line and the costs related to setting up an in-house after market
service operation. We anticipate that in total these charges will be in the
range of $6m-$10m.

We believe that the actions taken will enable the Group to be 100% focused on
its core strategy of delivering high quality leading edge devices supported by
world class service to our customers.


For further information please contact:

Buchanan Communications
Jeremy Garcia / Robin Haddrill            Tel: 020 7466 5000

JPMorgan Cazenove
Nicholas Garrett / David Harvey - Evers   Tel: 020 7588 2828
                                                                            


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

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