FRE Freeplay

RNS Number:2616P
Freeplay Energy PLC
10 January 2007


                                                                 10 January 2007

                              Freeplay Energy plc
                   ("Freeplay", "the Group" or "the Company")
                                 
                                  Trading Update

Freeplay Energy plc, the dependable energy company that captures, stores and
delivers electric power to self-powered devices such as radios, torches,
lanterns and mobile phone chargers, gives an update on trading for the year
ended 31 December 2006.

The Board is encouraged with the progress Freeplay has made during the year.
Freeplay continues to invest for growth and the Group has considerably improved
its position and revenue momentum during 2006. Following the acquisition of
Barrett Marketing Group Inc. and its subsidiary, Dixie Sales Company ("Dixie"),
in July 2006, we have been able to benefit from its marketing and distribution
strengths and continue to position Freeplay as a broader based dependable energy
manufacturing and marketing Group. Product selection and validation by UNICEF,
strong December sell through at Target and REI in the US, new green e-tailers
supporting Freeplay in the UK and product now on the shelves at major retailers
in Kenya are all very encouraging global building blocks for the business.

During the year ended 31 December 2006 the Group has experienced significantly
improved sales momentum from the core Freeplay business, with growth of over
130% with strong momentum in each of our existing market channels. FreeCharge
mobile phone chargers matched to 3 WP Phones' models are currently in test in
Nigeria. Market feedback is reported to be encouraging, but the in market test
is ongoing resulting in the first commercial order anticipated to be shipped in
Q4 2006 into 2007. As a result, the Board now expects that turnover for the year
ended 31 December 2006, including five months of revenue from Dixie Sales
Company, will be approximately US$26 million and that the loss before tax and
goodwill for the Group will be significantly greater than market expectations.

During the year Freeplay has made good progress in signing new agreements:

-  a five year distribution agreement with WP Phones to supply the FreeCharge
   mobile phone charger into Africa and the Caribbean;
-  a long-term agreement with UNICEF to supply Lifeline radios, which has
   contributed to a strong year in our humanitarian and aid division;
-  a joint venture agreement with the Narang Group, one of India's leading
   industrial houses, creating an exceptional platform for the development,
   manufacture and distribution of Freeplay's existing and future products and
   technologies into one of the world's largest markets for its products and
   services; and
-  a three year licensing deal with Nicco Industries in China, which allows
   Nicco to use Freeplay's self-powered technology in its products

These deals, along with Freeplay's continued involvement with MIT's "One Laptop
Per Child" programme, and continued growth momentum in our core North America,
UK and AID channels are expected to underpin Freeplay's sales in 2007.

Trading within Dixie for the five months since acquisition was in line with the
Board's expectations and the integration of Dixie is progressing as anticipated,
particularly in the areas of IT, Human Resources and Operations and Finance.
Freeplay is beginning to enjoy the benefits of the enlarged Group and in the
United States we are already seeing improved sales, especially of our flashlight
products.

Freeplay has also strengthened the Board with the appointment of Harold Reiter,
previously a non-executive director, as an Executive Director of Freeplay. Mr
Reiter has broad experience in finance and operations across a range of
different industries and will be valuable addition to the team in supporting the
continued integration and realizing our growth potential.

                                    - Ends -

For further information, please contact:

Freeplay Energy plc                                                020 7851 2630
Rory Stear, Executive Chairman

Weber Shandwick Square Mile                                        020 7067 0700
Louise Robson, Rachel Taylor or James White


Notes to Editors:

Freeplay Energy's core technology revolves around the efficient conversion and
storage of applied human energy and the delivery of this energy on demand as
electricity to create self-powered electronic devices. Initial applications
include radios (both consumer and humanitarian), torches, mobile phone chargers
and standalone foot chargers and the Company has a new product development plan
which anticipates broadening the application of its technology into new product
categories. Freeplay believes it was first to market and commercialise
self-powered technology and that it is recognised as a leading brand in this
market for such products. Further information about Freeplay Energy and its
products can be found at www.freeplayenergy.com.


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

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