Carclo Regulatory News (CAR)

9 October 2012

Carclo plc

("Carclo" or "the group")

Half year trading update

The group has traded in line with the board's expectations for the first half of the year and, as indicated in our Interim Management Statement issued on 16 August 2012, we expect a much stronger second half in terms of operating profit generation.

We are pleased to report that Conductive Inkjet Technology's ("CIT's") first production shipment for touch sensors was made in September. This shipment was for the low volume smartphone that was referenced in our AGM statement of 6 September 2012. The product design issue has now been resolved and further orders for this product will be shipped this quarter. We continue to expect the first shipment for the tablet program to be made in the current quarter, triggering the US$ 10.0 million prepayment from our commercial partner. Other customer projects are progressing well and should be in production early in 2013 to coincide with our planned scale-up of manufacturing capacity.

In Technical Plastics profits will, as anticipated, be behind last year's comparative period. This is mainly a timing issue caused by profit recognition on new tooling projects where work-in-progress is high, and will normalise in the second half. The first half of the year has seen a number of significant new business awards, both from existing and new customers, which will drive good growth in Technical Plastics going forward. Planning is underway for a significant capacity increase at our main US medical facility in order to support this new business.

In our preliminary results announcement of 12 June 2012 we stated that we would be forming a new division, LED Technologies, from our Wipac LED based supercar lighting business, previously part of the Precision Products division and our LED Optics business, which was previously part of our Technical Plastics division. Reported profits in our LED Technologies division are expected to be ahead of the prior year first half due to the continued success of the LED supercar lighting business.

Our Precision Engineering businesses, also previously part of the Precision Products division, have enjoyed a good first half, trading in aggregate ahead of the prior year first half.

The group's financial position has been substantially improved by the July equity placing which raised £13.3 million gross of expenses. The fund raising reduced group indebtedness to a more suitable level for an expanding technology company enabling the group to resource its longer term growth strategy for CIT and Carclo Diagnostic Solutions.

The board looks forward to the commencement of volume production shipments of touch sensors from CIT and is confident of delivering further progress across the group in the second half of the year.

- ENDS -

Notes to editors

Carclo plc is a technology led plastics group. It is a public company whose shares are quoted on the London Stock Exchange.

Approximately three fifths of sales are derived from the supply of fine tolerance, injection moulded plastic components, which are used in medical, optical and electronics products. This business, Carclo Technical Plastics, operates internationally in a fast growing and dynamic market underpinned by rapid technological development.

Approximately two fifths of sales are derived from the supply of specialised precision components to the premium automotive and aerospace industries and LED optics for a wide range of end applications. Carclo is a leader in the development of high power LED lighting for supercars.

Carclo's strategy is to develop new technologies and products to drive future growth. Its investment in Conductive Inkjet Technology is at the heart of the newly emerging market for very low cost printed electronics.