(DIA.L) Dialight PLC Buy/Sell

RNS Number:2152V Dialight PLC 20 April 2007

Date: Embargoed until 07:00 am, Friday 20 April 2007
Contacts: Roy Burton - Group Chief Executive
Cathy Buckley - Finance Director
Dialight PLC
Tel: 01480 447490
Alistair Mackinnon-Musson
Nicola Savage
Hudson Sandler
Tel: 020 7796 4133
Email: dialight@hspr.com

Trading Update

Dialight plc, the UK based leader in Applied LED Technology, announces the following Trading Update.

Dialight consists of two business segments:

* Signals / Illumination which includes Traffic and Rail Signals,

Obstruction Lights and the new Solid State Lighting (LED) products of the

Group

* Components comprising indication products and electromagnetic disconnects

The Signals / Illumination business, the core activity of the Group, continues to have excellent growth prospects and is performing well, as the market for LED lighting gains greater acceptance. Overall the performance of this division remains in line with our expectations.

Since our results in early March, our experience to date of order intake in the Components division remains disappointing and has continued at below 2006 levels. We now expect this trend to continue for the remainder of the year. Furthermore, a Group wide programme to reduce the cost of materials saw some slippage in implementation but is now on track to deliver the expected savings in the second half. Accordingly, we have revised our expectations and anticipate the combination of these factors over the full year will affect adversely the Group's pre-tax profit by approximately #1.3 million.