People got in to early on this one, but now is the time to buy and at a cheap price too 1.75p, read the RNS

* Eurocopter flight trials successfully completed
* Additional German & US military purchases
* Additional working capital secured

SCOTTY Group plc, announces today that Eurocopter Deutschland ("Eurocopter"),
part of the European Aeronautic Defence and Space Company ("EADS"), has
confirmed that the official flight trials of its military helicopters which
contain SCOTTY's CH 53 SATCOM Mission equipment have passed successfully.

During the trials, the equipment was demonstrated to officials from the German
Army. SCOTTY has received positive feedback from the Ministry officials that
attended and can confirm that the project now enters a new phase in which every
effort is being made to speed up the procurement process necessary to finalise
the project and implement delivery.

In order to fund the additional working capital and costs incurred during the 6
week delay to the flight trials for the CH 53 programme, SCOTTY has secured a
convertible loan of #400,000 through a new facility provided by Headstart, with
the possibility for another #400,000 above that. SCOTTY's directors believe that
this facility could be repaid within the 60-day term of the loan if the delivery
programme with Eurocopter proceeds as they anticipate.

In addition to the Eurocopter project, SCOTTY expects to receive over #2 million
before the calendar year-end from the implementation and delivery of a number of
orders previously announced.

These also include the delivery of Euro720,000 worth of equipment including SCOTTY
Mobile Systems, SATCOM equipment and Telemedicine units to the German army in
this quarter. In addition, SCOTTY confirms that the US Army has deployed three
disaster co-ordination teams equipped with SCOTTY's video teleconferencing
equipment to the Gulf Coast states, which were affected by Hurricane Katrina.

Chief of Staff for the First U.S. Army, Col. James Hickey said: "Satellite
communications are often critical in a hurricane's aftermath. One of the things
we learned last year with the series of hurricanes that passed through Florida
was the need for satellite communications,"

"This storm will likely take out some key communications nodes, and cell phones
and landlines may not work for some time," he added.

anyone noticed SCO website is down today ;-)

us there news tomorrow... could be a swift lift back to 13p

i'm in, lets see where they go.[north hopefully]

seems like a lot of people jumping ship

doh!

GET IN NOW!!!! GET IN NOW!!!

Been in these since last year, heard the rumors at the weekend, but would you like to explain your above comment spudhead.

Small-cap traders were watching tiny Scotty Group, up 0.37p to 1.77p, as rumours that the company is about to sign a significant helicopter contract did the rounds. The company has a market capitalisation of 11m, and the contract is thought to be worth 48bn (32.5bn). Traders said the company's small market capitalisation is the result of a hangover from the dot.com bubble, when the company was known as Motion Media.

Lithuanian Border Guard orders Eurocopter EC 135 and EC 145
Monday, February 27, 2006 - Eurocopter

The Lithuanian Border Guard has placed an order for two EC 135 and one EC 145 light-twin engine helicopters to complement its fleet of two single-engine EC 120s which have been in service since 2003. The contract is worth 18 million. Lithuania thereby joins the large number of law enforcement and homeland security agencies in Europe already operating these helicopter types, and becomes fully compliant with European Commission and Schengen Agreement standards. The three new helicopters will be delivered by the end of 2006.

Lithuania has a border of about 650 kilometers with Belarus and a border of almost 300 kilometers with Russia. The Eurocopter helicopters are suitable for border patrol operations as well as police service and will be used according to the demands of the structural subdivisions under the Ministry of the Interior. The EC 135s will be deployed at the countrys eastern frontier with Belarus and used for overland patrol. The EC 145 will be deployed at the Baltic Sea and used for the Coast Guard as well as for the guard of the frontier of the Kaliningrad district (Russia). It will be operated according to the Kaliningrad District Transit Program.

The EC 135 and the EC 145 are the reference helicopters for law enforcement and homeland security agencies in Europe. Prestigeous customers already include the German Federal Police, the French SecuritCivile and Gendarmerie, the Spanish Guardia Civil, Irish Garda and Irish Air Corps, London Metropolitan Police Authority and other UK police forces, as well as police helicopter squadrons in Sweden, Norway, Germany, the Czech Republic, Romania and the United States.

Eurocopter has adapted its line of light twin-engine helicopters very specifically to meet the demands of law enforcement and homeland security agencies. While the EC 135 has established itself as the standard police helicopter all over Europe, the larger EC 145 is a perfect complement with its ability to rapidly deliver a number of officers or heavy equipment to the scene of an incident. This ability is particularly relevant in the new climate of extra vigilance against terrorism.

Eurocopters new generation of light twins is notable for their spacious and unobstructed cabins which are easily accessible through large side sliding doors and rear clamshell doors and can be easily reconfigured. A broad variety of mission equipment packages is certified and available, such as for surveillance, search and rescue, emergency medical services, quick reaction missions, firefighting, training or passenger transportation.

The helicopters have night-vision goggle compatible, digital cockpits, and can be fitted with FLIR (Forward Looking Infrared), search light, rescue hoist and cargo hook, as the customer specifies. Besides, both the EC 135 and the EC 145 have the lowest noise emission is their respective classes, a fact well appreciated by operators who regularly fly over urban and built-up areas, or undertake surveillance and night missions and wish to remain undetected

Eurocopter is a wholly-owned subsidiary of EADS. EADS is a global leader in aerospace, defence and related services. In 2004, EADS generated revenues of 31.8 billion and employed a workforce of about 110,000. The EADS Group includes the aircraft manufacturer Airbus, the world's largest helicopter supplier Eurocopter and the joint venture MBDA, the international leader in missile systems. EADS is the major partner in the Eurofighter consortium, is the prime contractor for the Ariane launcher, develops the A400M military transport aircraft and is the largest industrial partner for the European satellite navigation system Galileo.

spud,
any thoughts on why sp down after news of this order.[re yr last]

AT77,

is this the contract you were hearing rumours about [and if so do you think sp went south as contract not as big as rumoured?][re yr 24/35 post]

Haven't seen that news elsewhere, but if that contract is for 18m euros, (12.5m) then how much is it worth to scotty to supply satelitte coms for them...? should we be expecting an RNS...?

Big ted,

An RNS has been expected for some considerable time!

And desite the deliberately misleading posts above, the POSSIBLE contract is for 48 MILLION Euros, Not 48 billion that is being misquoted above.

News is coming tomorrow morning..

Robert, I don't actually know much about this company and didn't hear any rumours - it was just the Independent article (which did say billion, even if by mistake) that caught my eye so thought I'd ask the messageboard about it.

Just for the record, I quoted it word-for-word and was trying to clarify, not mislead.

Andrew,

And the same misleading post has been posted over and over again across the road!

Guys,

Interesting though all this speculation is, in my humble opinion the 18 million/48 million - and any other large numbers quoted - are for the helicopters themselves. However much cash feeds back to Scotty for their involvement, I'm afraid it's not going to make much difference to the bottom line, as they are only providing a small amount of the componentry for (in this case) just three aircraft. Overall the Eurocopter contract could prove useful to Scotty's bank balance, but I think they'll need to see continued growth in all departments before they really start turning a profit - or before the share price really makes progress. Pity, cos when I bought I thought this was going to be an instant success . . .

PS don't forget that this stock has been considerably diluted by Scotty's fundraising attempts. It's great to hope they'll hit 13p again in a hurry, but that's now going to be a lot more difficult than it used to be, as the co. has gone from 213 million shares in existence at end of 2003 to almost 800 million today. In other words, they'd have to clear a profit of 4 million for EPS 0.5p, and then hit a P/E of 26. How soon are they going to achieve the kind of turnover with which to be able to do this?

AT77
my bad............. when I read your post, I misread it. The mention of rumours was in the article and not from you. Please accept my apologies.

Soul traders,

Nice to see a well reasoned and accurate post.

Some of the price predictions around are ridiculous IMO, and most people don't consider the number of shares in issue before picking their numbers out of thin air.

overvalued even at 1.6p.

Worth 0.5p max.

Andy,

Thanks - I try to be of service :o)

I've just had a closer look at SCO's recent press releases and their final results to 31 July 2005 (which I didn't get a chance to read properly at the time of their release as I was away from home for five weeks around Christmas).

On the plus-side, SCO definitely seems to be making progress with winning customers, and the orders are getting larger too. The downside is still their rate of cash burn and the continuing dilution by issuing new shares to Headstart to raise funds.

It's interesting to see that the current market cap of 13 million more or less reflects the value of net assets on the balance sheet. What's holding the share price back in my view is the (frankly, scary) prospect of Scotty having to issue yet more stock this year to cover another 5 million of losses. That could see another 300 million shares in circulation at today's SP of 1.625p. Improved trading ought to mitigate this somewhat, but there could still be a few years to go before break-even is achieved - and that means further dilution.

My conclusion is that, although the future looks good for the company for as long as Headstart is prepared to carry on investing, I wouldn't expect the SP to be performing any particularly spectacular somersaults for a while. As usual, all IMO/DYOR. I'll be holding on to my modest stake for a while longer, as I think there's enough upside to justify a gradual increase in the SP. I'm 38% down at the moment though.

Don't forget though, that the reason they are racking up such large losses, is because of their spending on r&d, the videophone orders are picking up, if some new contracts come in from eurocopter, this will go a long way to reducing losses, any more products launched (assuming that is what they are spending all their money developing) will increase turnover further... What i am saying is - last years results looked bad through high spending on the satcom equipment for eurocopter, as that figure decreases and orders come in, the profit/loss for current year could change dramatically...