Zotefoams Regulatory News (ZTF)

9 July 2012

Zotefoams plc

("Zotefoams" or "the Company")

Trading Update

9 July 2012 - Zotefoams, which manufactures and sells high-performance foams, today announces its trading update for the six months ended 30 June 2012.

Zotefoams has experienced good revenue growth in the first half of 2012 with an increase in reported sales of approximately 10% on the same period last year.

In constant currency our Azote® polyolefin foam business grew in all major markets with substantial growth in Asia and a particularly pleasing performance in both the UK and North America.  Sales in our High-Performance Polymer foams business are significantly ahead of the same period last year, driven by growth in aviation applications from North America.  The average price paid for low density polyethylene ("LDPE"), our major raw material, was lower than the same period in 2011.  However, the benefit of this and the sales growth was somewhat mitigated by the negative impact of a weaker euro and higher energy costs.

The development pipeline of new projects at MuCell Extrusion LLC ("MEL") is growing well from a small base, although revenue from existing licensees is anticipated to be below the same period last year.  We expect good progress in conversion of additional signed MEL licences over the coming years as a consequence of the investments we are making in this business.

Overall, the Company is trading in line with the Board's expectations for the full year with a strong order book and, while we are mindful of the potential impact of economic conditions and movements in currency rates, we continue to expect 2012 to be yet another year of progress and remain confident about the long-term prospects of the business.

The Company will announce its interim results for the six months ended 30 June 2012 on Tuesday, 7 August 2012.

About Zotefoams plc

Zotefoams plc (LSE - ZTF) is a world leader in cellular material technology.  Using a unique manufacturing process with environmentally friendly nitrogen expansion, Zotefoams produces lightweight foams in Croydon, UK and Kentucky, USA for diverse markets worldwide through its global sales force.  Zotefoams also owns and licenses patented MuCell® microcellular foam technology from a base in Massachusetts, USA to customers worldwide and sells T-Tubes® advanced insulation systems made from its patented ZOTEK® fluoropolymer foams.

www.zotefoams.com