ETQ.L Regulatory News (ETQ)

ENERGY TECHNIQUE PLC

("The Company")

TRADING UPDATE FOR THE YEAR ENDED 31 MARCH 2012

The Board would like to provide a trading update after the Company's year-end on 31 March 2012, but before publication of the audited accounts expected to be released by 15 June 2012. Whilst it does not usually do so, the Board has released quarterly trading updates during the year ended 31 March 2012, because it believes it is beneficial to keep shareholders and other stakeholders informed of the Company's progress in the current property market.

Sales in the fourth quarter of the financial year ended 31 March 2012 were ahead of management's expectations. The Company's operating subsidiary, Diffusion, had a successful trading year with sales of £7.1 million (2011: £5.8 million) representing an increase of 22% over the previous year. Diffusion continued to trade profitably in the fourth quarter of the financial year and its operating profit for the full year is expected to be above management's previous expectations. This represents a significant turnaround in Diffusion's operating performance from £0.2 million of losses reported in the previous year.

Central costs were lower in the year ended 31 March 2012, compared with the previous year, resulting from the board reorganisation in 2010. There were no exceptional charges in the current financial year (2011: £0.1 million).

After Central costs and interest, the Group has continued to trade profitably in the fourth quarter of the financial year ended 31 March 2012 and profit before tax for the full year is expected to be above management's previous expectations.

The Board is instructing its professional advisers in connection with a share reorganisation and application to the Court for a capital reduction, so as to allow the Company to pay dividends in the future. The expected timetable for completion of this is around September 2012. If at that time trading is continuing at current levels, then the Board will consider payment of a dividend. Approval from shareholders will also be needed for this share reorganisation and capital reduction and further details on this will be announced in due course.

The Company remains soundly financed with positive net cash and cash equivalents at 31 March 2012.

Enquiry levels and order prospects for the Diffusion business remain encouraging.

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.

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 the best possible products, designed specifically to meet customers' bespoke requirements.