DSN.L Regulatory News (DSN)

1 Feb 2007 07:00

Densitron Technologies plc

Sale of Densitron Gaming Limited

Densitron Technologies plc ("Densitron") is pleased to announce that it has exchanged contracts for, and completed the sale of, its Gaming Division (Gaming) to Sandco 1009 Limited effective as at 31st January 2007. The consideration payable is:

Net operating assets of approximately ‚£57,000 are being purchased on a pound for pound basis, subject to adjustment by completion accounts.

Goodwill of ‚£500,000 (plus interest) is payable in 24 equal monthly installments commencing 13 months after completion.

Royalties will be payable based on Gross Sales Revenue for five years (the first 3 years not being payable until the end of the 3rd year after completion) at rates of:

3% up to a maximum of ‚£4m Gross Sales Revenue;

5% on Gross Sales Revenue in excess of ‚£4m and up to a maximum of ‚£7m;

1% on Gross Sales Revenue in excess of ‚£7m and up to a maximum of ‚£10m; and

0.5% on Gross Sales Revenue above ‚£10m.

In its unaudited accounts for the year ended 31st December 2006 the Gaming Division reported sales of ‚£1,635,000 and a Loss after Taxation of ‚£898,000. The Net Liabilities of Gaming were ‚£910,000.

Proceeds from the sale of Gaming will be used to reduce group debt and further investment in the Displays business.

Ralph Baber, Densitron's Chairman, commented, "Densitron has now disposed of its two loss making Divisions at a profit. The Board will continue to focus on the profitable Displays Division with its global distribution and sourcing network. The Board is considering making some bolt on acquisitions in the related field of Displays and will continue to seek a way to maximize the value of the land at Blackheath and the investment in VBest Electronics Co Ltd."

Enquiries:

Ralph Baber, Chairman, Densitron Technologies plc 0207 648 4200

John Wakefield, Director, Corporate Synergy Plc 0117 933 0020