ETQ.L Regulatory News (ETQ)

ENERGY TECHNIQUE PLC

("The Group")

TRADING UPDATE FOR THE QUARTER ENDED 30 JUNE 2012

The Board has decided to continue for the time being with announcing each quarter's trading results, so as to keep shareholders and other stakeholders updated with the Group's progress in current property market conditions.

The Group has continued to trade profitably and in line with management's expectations in the quarter ended 30 June 2012 and the Board is pleased to announce the following unaudited trading results:

1. Sales for Diffusion of £1.81m, representing a 14% increase over the corresponding quarter's sales of £1.59m;

2. Operating profit for Diffusion of £78,000, representing a 66% increase over the corresponding quarter's operating profit of £47,000;

3. Group profit before tax of £28,000 after charging central costs and interest, representing an increase of 300% over the corresponding quarter's profit before tax of £7,000;

4. Group cash generated by operations of £5,000 compared with a cash outflow of £134,000 in the corresponding quarter;

5. Group net cash at 30 June 2012 of £209,000, compared with £237,000 at 31 March 2012;

6. Group net assets at 30 June 2012 of £1.44m (31 March 2012: £1.41m) equivalent to 43.2 pence per share.

UK market demand for fan coils and commercial heating products remains at historically low levels. However, enquiries and order intakes for Diffusion products, which serve the higher end of both the residential and commercial markets, are continuing at very encouraging levels and in line with management's expectations. The Group is also seeking to expand its geographical reach by pursuing certain overseas markets for fan coils, in particular the Middle East, where it has previous successful experience.

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