23 MARCH 2004

Plasmon Plc UDO UPDATE AND TRADING STATEMENT

Following the launch of UDO at Comdex last November, we have been working hard to ramp production volumes and satisfy the significant pent-up demand for UDO technology. After an extended period of technical evaluation and contractual negotiation, we have recently signed supply agreements with both HP and GE Medical, the two key OEM accounts for archival optical storage technology. Several other major OEM accounts are also under negotiation which we expect to close later in 2004.

The ramp-up of UDO production has been hampered by some component supply issues that are now largely resolved. These issues have impacted our sales revenue in the last quarter of the current year but we are now on-track to satisfy the rapid growth in OEM shipments that will start early in the coming financial year.

Revenues have also been adversely impacted by sterling-dollar foreign exchange movements which have reduced full year revenues by some £4m on a like for like basis with an inevitable impact on profitability.

While second half revenues will show consecutive period growth, the above factors will lead to overall revenues in our current financial year falling below earlier expectations. However, the outlook for UDO is very positive and with major OEM support now secured, we expect to achieve a significant improvement in revenue and profitability in the coming financial year.

Preliminary results for the year ending 31 March 2004 will be announced on Friday, 28 May 2004.

Enquiries

Plasmon Plc (01763 261466)

Nigel Street (Chief Executive)

Tim Arthur (Finance Director)

Citigate Dewe Rogerson (020 7638 9571)

Martin Jackson