365.L Regulatory News (365)

VPhase plc

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

CERT credits awarded

VPhase plc, (AIM:VPHA), a leading developer of energy saving products for residential and commercial properties, is pleased to announce that its subsidiary VPhase Smart Energy Limited has been awarded Carbon Emission Reduction Target ("CERT") credits for its VPhase VX1 product.

The device, which saves between 6% and 12% of a home's electricity bill, was tested through a CERT demonstration action approved by Ofgem and conducted with SSE (Scottish and Southern Energy). The demonstration action was carried out in 50 homes in the Thatcham and Reading areas and demonstrated a 5.2% reduction in electrical usage (6.3% for a gas centrally heated home).

This saving translates to 125kg CO2 per annum over the life of the device. Ofgem has set the life of the measure to 20 years for the purposes of carbon savings, although the device is designed to operate for many more years than this. This is equivalent to 2.5 tonnes of CO2 saved for every VPhase unit installed.

Whilst the Company is pleased to secure CERT credits as it is further endorsement of the energy saving credentials of the VPhase VX1, it recognises that these results are at the lower end of expectations and so we are exploring with Ofgem improved methods for measuring the true benefit of installing a VX1. Ofgem has also agreed with VPhase that the 2.5 tonnes of carbon dioxide and 6.3% saving figures may be reviewed as further trial data is made available to improve the CERT measure beyond this current baseline. All other trials and tests conducted by both the Company and by third parties have resulted in greater demonstrated savings.

The results achieved from other trials include the Great Places Housing Group trial which showed an average of 8.7% reduction in electrical consumption, staff home trials which showed a reduction of between 6% and 12% in electrical consumption, and the Company's in house laboratory tests conducted to replicate the load profile of the average domestic home where a 9.5% saving was achieved.

In addition we are aware that the Department for Energy and Climate Change ("DECC") is carrying out a consultation on the future of consumer electronics and appliances CERT and that one of the scenarios being considered is that everything other than insulation and heating be removed from CERT. If this latter scenario was adopted then VPhase would no longer be able to utilise CERT.

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Notes to Editors:

VPhase plc provides a product that reduces the energy consumption of many domestic electrical appliances.

The VPhase device:

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

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

·; easy to fit by a qualified electrician;

·; saves money from the moment of installation, with no need for behavioural changes;

·; enables many appliances to work more efficiently; and

·; reduces electricity usage and carbon emissions.

Independently verified tests by VPhase have demonstrated that the product can typically save around 10% of the electricity across a range of domestic products including fridges, freezers, central heating pumps, televisions and other items, even 'energy-saving' light bulbs. This should equate to savings for the typical homeowner of between £40 and £135 per annum.

In addition, 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 two times longer life when on a circuit managed by the voltage optimisation product as compared to those without the product.

www.vphase.co.uk