RNS Number:3885J
Imagination Technologies Group PLC
31 March 2003

                      IMAGINATION TECHNOLOGIES GROUP PLC

                                ("Imagination")



                           Pre-Close Trading Update



In order to give our shareholders an update on our trading we are announcing
prior to the close of our year end on 31 March 2003 that since announcing our
interim results in November 2002, we have continued to make significant progress
in licensing our range of technologies from our PowerVR, Metagence and Ensigma
divisions to industry leading partners. This progress has been made despite
industry conditions remaining tight. This increased business activity results
from our strategy to provide a broad range of complementary and market-leading
IP cores covering graphics, video, audio, broadcast, and communication for
System-on-Chip ('SoC') applications. It also reflects the direct relevance of
our IP to a number of growing and emerging markets.



During the second half, licensing and customisation business totalling
approximately #9m ($14m) was closed which represents a significant increase over
the first half. This has been achieved through concluding, during the second
half, four major licensing contracts out of the eight advanced engagements
mentioned in our interim statement. In addition to licensing agreements with
Sharp and Hitachi Mobile, announced in January and February 2003, we have
recently concluded two further licensing agreements, one involving a new partner
and one an extension with an existing partner.  Further information on these new
licensing agreements will be provided as soon as announcement details are agreed
with the relevant partners.



As well as increasing our partner base, we are also succeeding in broadening the
markets being addressed by our partners with our technology. In addition to our
partners' SoC integrated circuits currently shipping in digital radio, slot
machines and arcade, we now have committed SoC projects in development by our
partners across digital TV, PDA, in-car navigation/entertainment, and mobile
phone markets. We expect that royalty revenue flows, which are presently modest,
will start to increase as these products come to market through 2003 and 2004.



Cash receipts from the new technology licensing business closed during second
half have stabilised our cash position with the cash balance at March being
above the September 2002 figure of #5.3m.



This increase in business level has also resulted in a 90% growth in our
technology revenues in the second half of this financial year over the first
half. In addition as the DAB market has continued to develop strongly, we have
seen substantial revenue growth in the second half from our range of digital
radio products, including the #99 EVOKE-1, marketed by our PURE Digital division
and based on our META and Ensigma technologies. The result is that the expected
improvement in our second half financial performance has materialised with the
second half losses significantly reduced compared with the first half and the
business progressing towards break-even for the six-month period.



Imagination Technologies' preliminary results will be announced on May 19th
2003.



31 March 2003


Enquiries:


Imagination Technologies Group plc                   Tel: 01923 260 511
Hossein Yassaie
Trevor Selby

College Hill                                          Tel: 020 7457 2020
Kate Pope





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