365.L Regulatory News (365)

VPhase plc

("VPhase" or the "Company" or the "Group")

AGM Statement

At today's Annual General Meeting of VPhase (AIM: VPHA), a leading developer of energy saving products for residential and commercial properties, Vanda Murray, Chairman and Rick Smith, Chief Executive Officer, will make the following comment on current trading:

As anticipated, the Company has seen a significant increase in demand in the first 20 weeks of 2012 with total sales up by 292 per cent. and sales volumes 333 per cent. higher than the corresponding period in 2011. This growth is in line with expectations and the Company continues to drive for the additional growth necessary to meet full year expectations.

Demand in the Social Housing Sector, which has been the main driver of growth in this period, remains strong and continues to grow. The Board anticipates that further opportunities will arise in this important segment.

Margin pressure continues but the Company is in the process of establishing its low cost manufacturing capability which should, once implemented, return margins to expected levels later in the year.

The Company continues to lobby the UK Government for inclusion of Voltage Optimisation under the Green Deal; although additional support is being gained, the Board has agreed with Enact Energy to temporarily postpone promotion of its product through the Tesco website until this is clarified.

Despite the difficult economic environment, the Company has delivered significant sales growth, has a strong order book of over £200,000 and a significant pipeline of potential orders. Whilst the timing of orders is difficult to predict, the Board remains satisfied with the Company's progress so far this year.

- Ends -

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About VPhase

VPhase plc is an energy efficiency technology company that launched the first domestic voltage optimisation device in the UK. The VPhase VX1 lowers the voltage in the home, reducing the energy consumption of many electrical appliances, saving money and reducing carbon emissions.

The VPhase device:

- has been proven to save up to 12% off home electricity bills;

- is easily installed by a qualified electrician;

- does not require a change in lifestyle or electricity supplier;

- is low cost, with a typical payback of under 5 years;

- has a 5 year manufacturer's warranty and an expected lifespan in excess of 25 years;

- can save up to 4.5 tonnes of CO2 over its 25+ year life;

- attaches to the consumer unit (fuse box) and regulates the voltage to 220 volts;

- is the next most affordable and effective green option for the home, after insulation.

The VPhase VX1 has been extensively tested with independent verification supporting the saving claims, including an Ofgem approved CERT demonstration action, social housing trials and a range of independent consumer trials. Many electrical appliances in the home will benefit from having their voltage optimised and reduced, including fridges, freezers, central heating pumps, televisions, washing machines, vacuum cleaners, etc. - and even 'energy-saving' light bulbs. As well as reducing the homes electricity bill, there is evidence that the life of electrical appliances can be extended by the use of this product; light bulbs in particular, have demonstrated at least a doubling of operating life when on a voltage optimised circuit.

Web: www.vphase.co.uk

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