ETQ.L Regulatory News (ETQ)

ENERGY TECHNIQUE PLC

("The Company")

9 MONTHS TRADING UPDATE

The Board is pleased to announce the Company's unaudited trading results for the nine months ended 31 December 2011. Whilst the Company does not usually announce its results on a quarterly basis, the Board believes it is beneficial to keep shareholders and other stakeholders informed of the Company's profitable progress in the current property market.

Sales in the nine months ended 31 December 2011 of £5.16m (2010: £4.20m) were 23% higher than in the corresponding nine months of the previous financial year and Diffusion's financial performance was turned around into an operating profit of £235,000 (2010: loss £115,000.) Sales in the third quarter ended 31 December 2011 were ahead of management's expectations and the Board was particularly pleased with higher than expected sales in the seasonally low month of December 2011.

Central and plc related costs continued to be much lower in the nine months ended 31 December 2011 at £100,000 (2010: £138,000), resulting from the Board reorganisation last year. There were no exceptional items in the nine months (2010: redundancy costs of £30,000) and after interest expense of £25,000 (2010: £28,000), the Group's financial performance turned around into a profit both before and after tax of £110,000 (2010: loss £311,000).

The Company remains soundly financed with net cash and cash equivalents at 31 December 2011 of £107,000 (31 March 2011: £228,000). The reduction in net cash balances from 31 March 2011 was due to capital expenditure and repayment of hire purchase debt.

Whilst it is still too early to predict the outturn for the remainder of the current financial year ending 31 March 2012, there remains cause for continued optimism. Enquiry levels for both fan coils and commercial heating products remain at high levels. At the present time, the Company has orders and order prospects to meet its expected level of sales for the quarter ending 31 March 2012.

For further information:

Walter Goldsmith Chairman 020 8783 0033

Rob Unsworth Company secretary 020 8783 0033

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