Update of Funding

For Immediate Release 24th September 2004 IMAGE SCAN HOLDINGS plc Update of funding The Company announced on 2nd September that following withdrawal of a strategic investor the Board had opened discussions with a shareholder to provide interim funding to allow time to conclude a long term strategic investment by the end of the calendar year. Discussions are progressing well and the Company believes a short term loan can be put in place on satisfactory terms, subject to satisfactory due diligence. In the meantime, proposals for the long term funding for the Company have commenced with third parties and this bridging finance will give the Company sufficient time to conclude these negotiations. Ian Johnson, Chairman said 'Support from our shareholder base has been encouraging and we continue to explore possible funding solutions. I have been encouraged by the desire to ensure that this unique technology is allowed to achieve its full market potential. We believe the offer of short term funding may well be a good barometer for confidence in a longer term offering. Additionally on the trading front we are in discussions with a number of businesses over long term partnering agreements for certain of our Industrial and Security products, which will strengthen the sales effort for our imaging technology and solutions.' Contact details Image Scan Holdings 01664 503 600 Ian Johnson, Chairman LN:1A2B25A