Carclo Regulatory News (CAR)

7 February 2013

Carclo plc

("Carclo" or "the group")

Interim Management Statement

The board is pleased to report that the group is benefitting from a better second half trading performance, as expected.

In Technical Plastics, demand from a number of customers weakened in December and was slow to recover in January. Schedules have now returned to normal and February has started well. In LED Technologies, Wipac's supercar lighting business has enjoyed a solid start to its fourth quarter and the Precision Engineering division continues to perform well.

On 20 December 2012 we announced that volume production of touch sensors based on Conductive Inkjet Technology's ("CIT's") Fine Line Technology had commenced and that shipments of touch sensors had exceeded the minimum volume threshold specified in our agreement with Atmel Corporation ("Atmel"). There has been a delay in the Atmel managed downstream supply chain associated with the differing manufacturing requirements between ITO and XSense™ touch sensors. These manufacturing issues have now been largely resolved and all parties are confident that the production ramp-up will commence shortly. The US$10.0 million prepayment has been triggered but will not be received until full-scale production resumes and Atmel has invoiced its customer.

Validation of the Atmel US XSense™ facility is imminent but not yet complete, and this will reduce CIT film sales in the present quarter relative to our previous expectations. Commercially, Atmel report continuing high interest in XSense™ with a further design nomination confirmed and a promising pipeline of projects. Plans are well advanced at Atmel for further increases in manufacturing capacity in the second half of 2013.

We remain excited about the prospects for XSense™ and CIT especially in the next financial year and beyond.The group's financial position continues to be strong and will benefit further from the receipt of the US$10.0 million prepayment in due course.

As previously announced, Ian Williamson retires as Chief Executive on 27 March 2013 and Chris Malley will become Chief Executive on this date. Ian will continue to support Chris in a consultancy role concentrating on the technical and commercial development of Carclo Diagnostic Solutions.

- 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 products to the premium automotive and aerospace industries. 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.