Loqus Holdings plc - Interim Directors’ Statement

Datatrak Holdings plc issued its Interim Directors’ Statement on 19 May where the Directors confirm that the restructuring strategy approved during the EGM held in April 2008 has been affected which will allow the Group to expand its business on an international level. The Directors had projected total Group revenues to slightly exceed €4 million in 2008 with an estimated pre-tax profit of €605,000. In the Interim Statement, the Directors confirmed that the Group’s operational performance in the first quarter of 2008 was in line with expectations.

Datatrak announced that in the UK it has continued to register a steady performance during the period under review where sales of Datatrak On-line continued to grow as anticipated. The Directors stated that Datatrak is in the final stages of negotiations with two multinational clients operating from the UK for the use of DispatchIT which can potentially lead to contracts in other European countries. Moreover, maintenance and support contracts and consultancy contracts in relation to RouteIT have also been secured.

The Directors stated through Datatrak Italia srl (the Italian subsidiary of Datatrak Solutions Ltd), a number of potential clients are currently undertaking trials of DispatchIT while in the Dutch market revenue should be realised in the latter part of the year of the sale of DispatchIT licences to two clients.

Furthermore, the Directors confirmed that the Marketing Plan for the penetration of the Italian, Spanish and French regions is in the second stage of implementation and a Product and Solutions Manager has been recruited and assigned for the Spanish market as Spanish versions of its solutions are being finalised.

The Directors stated that Datatrak Systems Ltd, the Group’s tracking operator, increased its total vehicle fleet in the period under review and negotiated a five year tender for a major client. However tracking services in the local market are not expected to increase due to market forces driving prices down.

The Directors concluded by stating that Datatrak Services Ltd initiated its migration process of all its connected vehicles to GPS/GPRS technology which will result in lower levels of operational costs while other local revenues generated from projects and services other than those generated from vehicle tracking services are anticipated to remain at last year’s levels.

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