ETQ.L Regulatory News (ETQ)

ENERGY TECHNIQUE PLC

("The Company")

TRADING UPDATE FOR THE NINE MONTHS ENDED 31 DECEMBER 2012

In accordance with its current practice, the Board announces the unaudited trading results for the nine months ended 31 December 2012. The Board is pleased to report the Company has continued to trade profitably in the nine months ended 31 December 2012:

1. Sales for Diffusion of £5.39 million (2011: £5.16 million), representing a 5% increase over the corresponding period;

2. Operating profit maintained for Diffusion at £237,000 (2011: £235,000);

3. Group profit before tax of £59,000 (2011: £110,000) after charging central costs, interest and an exceptional charge of £26,000 (2011: £Nil) relating to the 2012 capital reduction and reorganisation;

4. Dividend paid of 0.75 pence per share;

5. Group cash absorbed by operations of £141,000 (2011: cash generated £7,000);

6. Group net cash at 31 December 2012 of £2,000 (31 March 2012 £237,000);

7. Group net assets at 31 December 2012 of £1.44m (31 March 2012: £1.41m) equivalent to 43.3 pence per share.

The trading results for the nine months ended 31 December 2012 absorb the seasonal trading losses ordinarily incurred in the short trading month of December. The 5% growth in Diffusion's sales was achieved in the continuing downturn in the current UK property and construction market.

Cash absorbed by operations in the nine months was due to a short term increase in working capital, reversed during January 2013. Group net cash at the end of January 2013 had increased by £180,000 to £182,000.

Order intakes for January 2013 were particularly strong, including London based high end residential developments, and the Board believes that trading performance for the fourth quarter will be strong, resulting in financial performance for the full year ending 31 March 2013 well in line with its expectations.

For further information:

Walter Goldsmith Chairman 020 8783 0033

Leigh Stimpson Managing director 020 8783 0033

Ed Frisby/Ben Thompson finnCap Limited (Nominated Adviser) 020 7220 0500

NOTES TO EDITORS

With over 50 years in the H&V industry, Energy Technique's operating company Diffusion is one of the oldest and most established manufactures of Heating Ventilation and Air Conditioning products in the UK. Diffusion is a market leader in the manufacture of premium quality fan coils and commercial heating products. The Diffusion and Energy Technique brand names are recognised as highly engineered, quality products, providing leading edge performance and energy efficiency, which have been fitted into projects including the Shard and No 1 Hyde Park.

Diffusion has been involved with many challenging and prestigious projects across a spectrum of sectors including hotels, commercial offices, retail, schools, hospitals, and residential. Diffusion has established excellent working relationships with many blue chip clients including Land Securities, Marks & Spencer, Boots, City Inn Hotels, Stanhope Properties and many more. All products are designed, developed and manufactured at Diffusion's 30,000 sq. ft. manufacturing facility in West Molesey, Surrey, offering superior products, designed specifically to meet customers' bespoke requirements.