Gaming Realms Regulatory News (GMR)

27 March 2012

AGM Statement

At 11.00am today, Andy Quinn, the Chairman of Pursuit Dynamics plc ("PDX" or the "Company") will deliver the following statement at the Company's Annual General Meeting.

"On 22 February 2012, PDX published a prospectus in connection with its successful Rights Issue and Placing which, among other things, provided an update on developments within the business. The business continues to make progress and the Board's view of the prospects for the business remains as it was at the time of publication of the prospectus.

With the benefit of receipt of the proceeds from the Rights Issue and Placing, the Company's cash balances at 23 March 2012 were £9.8 million. The Company's cost cutting programme has reduced headcount by around 25% and reduced expenditure from a run rate of approximately £1.2 million per month in December 2011 to £1 million per month currently and will reduce it to £750,000 per month later in this financial year.

Industrial Licensing

The Company's exclusive Joint Development Agreement with Procter and Gamble ("P&G") was extended to the end of March 2012. Testing is at an advanced stage and P&G is now in the process of data discovery and translating technical performance to model commercial benefits across the first business unit. We hope to progress to a commercial agreement although there can be no certainty as to whether and when that might be achieved. An announcement will be made of developments in our discussions as appropriate.

Bioenergy

Our near-term focus in this Line of Business ("LOB") is to establish ourselves successfully in the corn to ethanol market, largely located in the US. The 'Early Adopter' model that we pursued during 2011 has achieved important market penetration, proved that the system produces economic benefits for clients and given us a valuable understanding of the impact of our technology across a variety of installation configurations. The challenges being addressed by the Company are threefold: the achievement of auditable results that confirm the financial benefits our customers have received with the ERS; the establishment of commercial agreements which enable commencement of revenue flow on a sustained basis, and; the optimisation and measurement of plant performance utilising proven scientific tools, which we currently expect to complete in the first six months of calendar year 2012. Our expectations for the current year envisage 625mgpa of capacity installed, or in the final stages of installation, by the end of September 2012. 

Brewing, Food & Beverage

Hagen Gehringer, who is responsible for our Public Health & Safety LOB, has also taken over responsibility for this LOB. The team expects to secure further sales from existing customers in both Brewing and Food. Additionally PDX hopes to exploit new opportunities in the beer mashing and cereal cooking areas although no sales have yet been achieved. We continue to discuss licensing arrangements with a number of potential partners to assist us in accelerating the marketing and commercialisation of both our brewing and food product offerings globally.

Public Health & Safety

Discussions continue across the existing and potential client base to achieve sales for our new products and from our existing projects.

Based on the work of previous years we have developed two products: the man-portable First Responder System ("FRS") and a Mobile System. The FRS prototype was tested and the first production batch is being built. We have exhibited the product and will demonstrate it in April at a major trade event. The interest from customers has been encouraging and orders are expected over the next few months. In parallel we are evaluating our distribution strategy through sales partners and dealers.

The initial Mobile System units will be available from mid May. We have received expressions of interest and we anticipate making our first sale in May. Additionally, we are now planning field tests with prospective customers over the next few months in hospitals and industrial environments.

We have completed two projects with customers in the nuclear environment, both successfully. We expect repeat revenues from these customers in this fiscal year. Furthermore we have demonstrated our ability to spray polymers and create a peelable coating for the removal of radioactive particles. We expect to generate further sales within this fiscal year.

Waste Treatment

Phase 1 (proof of concept) trials with Thames Water are about to complete and will be reviewed shortly. Phase 2 (product development) protocols, will then be determined. The key areas of assessment revolve around the pasteurisation, foodwaste and biogas processes. No significant revenues are expected from this LOB in 2012 but the Company is pleased with the progress that has been made and the potential for emergence of revenues in the medium to long term."

Further updates will be provided with the publication of the results for the half year ended March 31 2012, which we anticipate will be announced at the end of May.

End