RET Retec

    Press Release

4 August 2008

                               RETEC DIGITAL PLC                               

                           ("Retec" or "the Group")                            

                                Trading Update                                 

Retec Digital PLC, the multi-channel marketing services company, today issues a
trading update for the year to 30 June 2008. The business has continued to make
significant progress during the period compared with the prior year.

Retec has traded profitably in the second half of the financial year and
revenue continued to grow, albeit at a slower rate. The Group has continued to
make good progress, despite experiencing delays on some projects, which are
anticipated to be deferred into the current financial year to 30 June 2009.

At 30 June 2008 the Group had net cash balances of �0.5 million.

Operational Highlights:

  * Successful deployment of two new applications to Tesco for home electronics
    and Tesco Direct;
   
  * Delivery of substantial orders, in conjunction with IBM UK Limited, to
    Alliance Boots and to Argos;
   
  * Favourable renegotiation of the Sainsbury's Entertainment Xtra contract to
    be a service based contract;
   
  * Acquisition of Liquid Digital Limited, a multi-media creative company, in
    order to strengthen the creative team within the group;
   
  * Appointment as strategic partner for kiosk solutions within ASDA, part of
    the Walmart group;
   
  * Strategic alliance with NCR Corporation developing well.
   
Commenting on the period, John Cole, Chief Executive Officer said:

"During the year to 30 June 2008 we have continued the momentum of the previous
year. We continue to invest in developing new product lines to broaden the
range of Product Selectors we are able to take to market, with notable
successes for Electrical and Wine.

We are very excited about the Group's prospects for 2008/09, as we look to grow
further, both organically and through acquisition. Despite tougher trading
conditions since the beginning of the calendar year 2008 we continue to make
progress in our market where our products offer substantial cost savings as
well as sales uplifts to our customers.

Our sales pipeline remains strong, and we are continuing to develop our
strategic partnership with NCR Corporation, which we believe will lead to
further opportunities both in the UK and overseas."

Retec intends to issue its preliminary results for the year to 30 June 2008
during the fourth week of October 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                                                   
                                                                             
Mark Taylor                                                     020 7149 6000

Notes for Editors:

Retec Digital PLC provides multi-channel marketing solutions to retailers
designed to engage customers and increase sales.

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

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

Entertainment Xtra - a communications channel incorporating the range of the
company's system aimed at promoting home entertainment products such as music,
films, games and books. Other customers include Sainsbury's, Tesco and ASDA.

Product Finder - this is used to locate any product within a store and can be
used in conjunction with other applications within the company's portfolio.

Guided Selling - a touch screen providing audio/visual information/instruction
on products at the point of sale. This has a variety of applications including
for example, 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 extend the range of product
sold within a store, enable self check-out, 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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