Trading update

Forbidden Technologies (AIM:FBT), the AIM-quoted developer of a market leading Cloud video platform for the social media world, FORscene, is pleased to provide a trading update following its financial year end at 31 December 2011. Forbidden entered 2011 with an outstanding Cloud video platform, a strong cash balance, growing professional sales, many technology options, and a multi-channelled plan for applying capital efficiently to expand sales.

Forbidden is focussing on four market segments, addressed through corresponding channels. Each channel is aimed at leveraging partner companies existing infrastructure and customers to encourage the rapid take up of FORscene.

The Companys first segment is Episodic Television. It is moving up in scale by signing up Post Houses to act as channels to market, making FORscene available to their production company clients. The Post House channel is growing quickly, leading to a 94% increase in H1 2011 sales in broadcast post, and continued high percentage growth in H2, albeit slightly lower than H1.

The second segment is real time or near real time use, and includes News and Sport. The advances in FORscene, including real time editing of live content and mobile access, have allowed Forbidden to address the two major markets of News and Sport. Progress has been made in both these areas, with major partners from both signed in 2011.

The third segment is Large Scale Video Systems delivered by Systems Integrators. In this segment, Forbidden is not directly interfacing with potential end users. Although progress has been slower than expected and is less predictable than other segments, it has large potential scale at marginal cost to the Company: Systems Integrators supply very large customers, in particular those not directly accessible to a relatively small UK based company.

The System Integrators have included FORscene in a number of bids, but in the current global economic climate, to date no deals in this area have yet been completed. With FORscene included in a number of recent proposals, the Company awaits movement on these big projects globally to allow it to assess the role FORscene will play in this area.

The fourth segment is Video for the Consumer and the Social Media World. In social networking, Clesh publishes to both YouTube and Facebook. The Company expects progress through our Canadian distributor Formidable Technologies and their clients, though this has yet to show up in the results.

Forbiddens Android App Clesh has achieved a number of strategic objectives: to raise Forbiddens profile with potential B2B customers and investors; to receive direct feedback from end users; to demonstrate the power of Forbiddens technology; and to develop tablet and smartphone technologies, both of which are strategically important going forward. The App itself is broadly self financing and cash neutral.

As a global technology leader in the Cloud video tools market, Forbidden is fortunate to have access to capital to fund growth. Investment has recently been financed from growing sales income, in addition to existing capital reserves. An expected increased loss in year ended 31 December 2011 is a direct result of higher investment during the year; the Board remains focussed on long term growth rather than short term profit.

Forbidden increased Sales and Marketing and R&D resources in H2, to expand the Companys capability to address new markets and equip itself for larger deals.

The licence deal with YouTube, announced in December 2011, achieves many objectives for the Company. For example, it demonstrates, even to the non-technical observer, that FORscene is a force to be reckoned with. YouTube will make a significant contribution to Forbiddens 2012 results, and fits with Forbiddens segment strategy.

In conclusion, Forbidden has made good use of its financial and technical flexibility. The Company believes it is on track to become the world standard in Cloud video editing, with different channels proceeding on different time scales.

With organic growth driving double digit percentage sales increase in 2011, Forbiddens visible sales pipeline for 2012 already show a further expansion.

-End-

Enquiries

Forbidden Technologies plc
Stephen Streater, CEO
Tel: +44 (0)20 8879 7245

Brewin Dolphin
Neil Baldwin, Nominated Advisor
Tel: +44 (0)845 213 4726

Bishopsgate Communications
Deepali Schneider / Natalie Quinn
Tel: +44 (0) 20 7562 3350
forbidden@bishopsgatecommunications.com

About Forbidden Technologies

Forbidden Technologies plc (AIM: FBT, www.forbidden.co.uk) floated in February 2000.

The Company develops and markets a powerful internet video platform, FORscene, which is used by broadcasters, in professional web video, in education and by consumers. FORscene is one of the worlds most advanced browser-based applications and mobile apps, operating in The Cloud.