SDI GROUP PLC 
By
Issue of Equity and
Trading Update and Notice of General Meeting
Scientific Digital Imaging plc (AIM: SDI, "SDI" or the "Company"), the AIM quoted group focused on the application of digital imaging technology to the needs of the scientific community, is pleased to announce that it has conditionally raised approximately £850,000 (before expenses) through a placing of 4,833,334 new ordinary shares of 1p each ("Ordinary Shares") at a price of 15 pence per Ordinary Share, and following the receipt of subscriptions for 833,334 Ordinary Shares at a price of
15 pence per Ordinary Share, ("New Shares") (the "Equity Fundraising"). The issue of the New Shares is conditional, inter alia, on shareholder approval at a General Meeting.
The proceeds of the Equity Fundraising will be used to repay in full the £379,000 of outstanding convertible loan stock, which is repayable in July 2013, together with all interest that has accrued thereon.
Alongside the Equity Fundraising, the Company has also entered into a loan agreement with an existing shareholder, Dana Investments BV ("Dana"), whereby Dana will lend to the Company
£50,000 as an interest bearing loan (the "Loan"). Dana is also participating in the Equity Fundraising as to 333,334 New Shares and on completion of the Equity Fundraising Dana will hold 3,496,494
Ordinary Shares representing 15.2 per cent. of the Company's issued share capital as enlarged by the
New Shares.
The balance of the proceeds of the Equity Fundraising, together with the Loan, will be used for general working capital purposes and software development.
Commenting on the above arrangements, Chairman Ken Ford said, "I am delighted that SDI has received further investor support in this funding round. We now have a stronger platform on which to build our business. We look forward to updating the market with progress."
In the last 12 months the Company has seen revenue growth globally in the major application areas with improved gross margins. Over the period SDI has restructured its manufacturing to reduce the cost base. New systems have been implemented, resulting in greater efficiencies and cost savings throughout the Company.
The Company is beginning to see a tentative recovery in its markets and with the introduction of Synoptics Health within the Synoptics division and a number of innovative systems, SDI's current sales pipeline continues to grow. The Board is encouraged by the response to its newly launched ProReveal system where technology has been developed to detect nanogram levels of protein contamination on surgical instruments and could, the Directors believe, help reduce the number of cases of post-operative infection.
SDI will further update the market with the issue of its final results for the year ended 30 April 2013, which are expected to be in line with market expectations, on or around 23 July 2013.
A notice convening the General Meeting, to be held at the offices of finnCap Ltd, 60 New Broad Street, London EC2M 1JJ at 11 a.m. on 9 July 2013, will accordingly be posted to shareholders today and will be available from the Company's website www.scientificdigitalimagining.com.
As stated at the time of the half year results for the six months ended 30 October 2012, the Board has taken action to reduce overheads. The Directors believe that should the Equity Fundraising not proceed for any reason, the Company will not have adequate funds to repay the convertible loan stock and thus would need to find alternative funding. Therefore, the Directors would urge Shareholders to vote in favour of the proposals set out in this notice.
The Directors consider the proposals set out in this notice to be in the best interests of the Company and the Shareholders as a whole. The Directors who hold ordinary shares in the capital of the Company intend to vote in favour of the resolutions to be proposed at the General Meeting in respect of their shareholdings, representing in aggregate approximately 1.5 per cent. of the Company's current issued share capital as at the date of this announcement.
Application will be made to the London Stock Exchange for the New Shares to be admitted to trading on AIM. Assuming that the resolutions to be proposed at the General Meeting are passed, it is expected that:
(i) Admission will be effective, and dealings will commence in respect of the New Shares to be issued pursuant to the placing at 8:00 a.m. on 10 July 2013; and
(ii) Admission will be effective, and dealings will commence in respect of the New Shares to be issued pursuant to the subscriptions, at 8:00 a.m. on 2 August 2013.
Unless otherwise defined herein, capitalised terms used in this announcement shall have the same meanings as defined in the Circular containing notice of the General Meeting, a copy of which is available on the Company's website.
Mike Creedon, Chief Executive www.scientificdigitalimaging.com
finnCap 020 7220 0500
Ed Frisby/Rose Herbert - Corporate Finance
Simon Starr - Corporate Broking
Scientific Digital Imaging plc (SDI) is focused on the application of digital imaging technology to the needs of the scientific and technology community. Its principal subsidiary is Synoptics Limited, which
designs and manufactures special-purpose instruments far use mainly in the life sciences, supplying customers in the academic, research and health sectors. Within Synoptics, the recently formed Synoptics Health division has launched the Synoptics Health ProReveal system. This patented system offers a highly sensitive fluorescence-based test to detect dirty surgical instruments in hospitals and aims to reduce incidences of cross contamination of patients. In addition, under the Atik brand, SDI designs and manufactures high-sensitivity cameras far both astronomica! and life science applications.
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