DSN.L Regulatory News (DSN)

Densitron Technologies plc

("Densitron" or the "Company")

Trading Update

On 5 November 2012 the Company announced that it expected its results for the year ended 31 December 2012 to be behind market expectations. At that time the Company expected certain orders to be booked and delivered to customers in the period up to the year-end. However, for reasons outside the control of the Company some of this business has now been delayed into 2013. As a result of these delays the Company's operating profit for the 2012 financial year will be materially below that achieved in 2011. It should be underlined that the Group's Balance Sheet remains strong and that the only bank debt within the Group is to support working capital.

In November 2012 the Company updated its shareholders on the position of the proceedings that had been taken against it in respect of a lease of a property located at Wallsend, Tyne and Wear, near Newcastle (full details of the action are set out in the announcement dated 1 March 2012). It advised its shareholders that the directors had resolved to enter mediation with the other parties to the litigation. Unfortunately, the directors have been unable to enter mediation due to the unwillingness of the other parties. However, the directors continue to work to achieve a negotiated settlement.

Grahame Falconer, Chief Executive Officer of Densitron said: "The end to the year was disappointing, but reflects how cautious the market remains, with customers not wishing to overcommit. However, orders booked in the year were ahead of those booked in 2011, which, together with the introduction of new services and products, gives us confidence for 2013.

It is disappointing that we were unable to get the other parties to the litigation to agree to a mediation process but the Board is continuing to try to resolve this matter by way of a negotiated settlement."

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