Gaming Realms Regulatory News (GMR)

3 December 2010

Pursuit Dynamics PLC

("PDX" or the "Company')

Preliminary results for the year ended 30 September 2010

PDX (AIM: PDX) is pleased to announce its preliminary results for year to 30 September 2010. In addition, PDX is also pleased to announce a number of new commercial agreements and a current trading update across its Lines of Business ("LOBs").

Financial highlights

§ Fundraising in April 2010 raised £10 million (before expenses) at £2.50 per share, a premium to the prevailing market price.

§ Net funds of £10 million at financial year end.

§ Operating loss before non-cash expenses rose by £1.4m to £7.2m (2009: £5.8m) following further investment in resources to ensure delivery of numerous opportunities.

New current trading highlights

§ Agreements signed with two of the top four global brewers to install the PDX brewing system.

§ Agreement signed with one of German's largest brewers to install the PDX brewing system.

§ Two new products announced for Brewing, the PDX Disinfection system and the PDX Pasteurisation system. These are being developed in cooperation with Oettinger Brauerei GmbH ("Oettinger"), one of Germany's leading brewers, and the other leading German brewer announced today.

§ Four new bioethanol plants have agreed to install the Ethanol Reactor System ("ERS"), including three from Pacific Ethanol, Inc ("Pacific Ethanol"). Pacific Ethanol has now agreed to install PDX's ERS in all of its plants.

§ Initial early performance measures, including ethanol concentration, residual sugars, glycerol, and lactic acid, from the first Pacific Ethanol plants are consistent with ICM uplift results and have demonstrated a considerable reduction in cycle times.

§ Collaboration agreed with the Singapore Civil Defense Force to develop a first responder system for the Asian market as part of the Kaercher Futuretech GmbH ("Kaercher") joint venture.

§ The 60/40 joint venture with the National Nuclear Laboratory ("NNL") is progressing well with licensing revenues of up to £5m forecasted over the next 18 months, which is faster than expected.

§ New Water LOB created, initially focussed on waste water management solutions.

Operational highlights

§ New leadership appointed to the Biofuels, Brewing, Food and Beverages and New Ventures LOBs.

§ Contracts to install the ERS signed with the Madrid, Nebraska plant of Mid America Bio Energy & Commodities, LLC, ICM's Marquis Energy, LLV plant and Pacific Ethanol Boardman plant.

§ Agreement signed with Oettinger to install a new PDX brewing system at its Braunschweig brewery.

§ Agreement signed with Kaercher, the world's leading manufacturer of high-pressure cleaning equipment, to establish a 50/50 joint venture to jointly develop, produce and market civilian and military decontamination and disinfection products for the global market.

§ Agreement signed with the UK's NNL to establish a 60/40 joint venture to develop, produce and market products for the global nuclear market.

Post period end

§ Joint Development Agreement with Procter and Gamble Company to develop specific applications using the PDX reactor technology.

§ Richard Webster appointed as Chief Financial Officer replacing Donald Bell who is retiring.

Commenting on the results, Roel Pieper, CEO of PDX, said:

"The past year has been one of exciting change and progress at PDX. We have re-aligned our business into six distinct divisions, we have entered into a range of commercial agreements and we have significantly strengthened our senior management team. PDX has developed considerably over the past year and we have achieved tangible success in driving our commercial development.

As we enter the next financial year we are in a strong position to build on the progress made last year. I am delighted to announce today that we have now signed new agreements with two of the world's major brewers and one of the largest brewers in Germany, four new bioethanol contracts and a collaboration with the Singapore Civil Defense Force.Our business divisions are all operating commercially and we have a very promising new business pipeline on the horizon. This platform gives us an outstanding opportunity to drive significant growth over the medium term and deliver substantial value for shareholders."

- Ends -

For Further Information, please contact:

Notes to Editors

About PDX

- PDX (AIM: PDX) owns and commercialises the PDX Atomiser and Reactor technologies that enable significant reductions in energy usage, process acceleration and result enhancement for a wide range of industrial processes and applications.

- The PDX business model is currently organised into six Lines of Business - Bio-fuels; Brewing, Food and Beverages; Public Health and Decontamination; Industrial Licensing; Water and New Ventures.

- PDX is headquartered in Huntingdon (UK) with an office in London (UK), Schaffhausen (Switzerland) and Connecticut (USA).

- Further information is available at the Company's website: www.pdx.biz 

- Publication quality photographs are available from FD.

CHAIRMAN'S STATEMENT

The past year has been one of exciting change for PDX. During his first one hundred days, our new Chief Executive, Roel Pieper, undertook a full assessment of our core technology suite, reviewing the multitude of potential applications and evaluating the likelihood of their early commercial success. Following that review we moved quickly to revise our corporate structure into new LOBs supported by a core of support services, including R&D, Engineering, Legal, Finance and Administration. During the balance of the year we have moved to hire experienced senior executives into leadership positions within each of these LOBs and charged them with pursuing new business with great vigour.

Shareholders will be aware of some of the highlights of our success in each of our businesses during the year. They have included the re-launch of our Biofuels and Brewing, Food and Beverages businesses, including agreements signed with several significant partners. A number of agreements to enter joint ventures were signed in Public Health and Decontamination. A New Ventures business was created charged with determining which of our many potential applications has the highest and earliest likelihood of becoming a commercial success and guiding them to the point at which they might become stand-alone businesses.

In responding to the global financial crisis late in 2008 and through 2009, we drastically pared back our level of activity and headcount, whilst focussing our emphasis on those areas close to commercialisation. Since re-launching our business on a much broader front during this past year, we have invested heavily in highly skilled scientists, engineers and project managers, as well as the new business heads. I am delighted at how quickly they have become productive members of the PDX family and have contributed strongly towards our newly formed LOBs. In addition, we are leveraging our capability through alliances with other high quality organisations through joint ventures, partnerships and sub-contracting arrangements. As we view the future, it seems unlikely that we will engage in material levels of manufacturing of our products for our own account, but rather through third parties, being mindful at all times of the value of protecting our intellectual property.

With an increasingly international spread of business and a need to provide contractual access to our growing body of intellectual property in an efficient manner for each of our businesses, and thus to their customers around the world, we have opened an office in the Swiss Canton of Schaffhausen, near Zurich. Our intellectual property suite will in the future be managed from there, as will our Public Health and Decontamination business joint venture with Kaercher and our European Brewing, Food and Beverages business.

Our recent progress has been down, in no small part, to the support of our shareholders and their confidence in the Company's unique technology portfolio, coupled with management's ability to deliver tangible commercial success. On behalf of the Board of Directors I would also like to record my gratitude to the management and all of our dedicated and talented staff who have worked so hard over this past year to bring the Company to where it is today.

The Board

Just after year end we announced the retirement of Donald Bell as Chief Financial Officer who will stand down from the Board of Directors in early December. Donald has served the Company well over the past two and a half years through its transition period and on behalf of the Board of Directors I would like to thank him for his dedication and hard work and wish him the very best for a long and enjoyable retirement.

I welcome Richard Webster who has joined the Board of Directors in the role of Chief Financial Officer. Richard has held a number of senior finance positions in a variety of companies including Mercury Asset Management, Serco Group PLC, Director of Finance at Transport for London's Surface Transport division and CFO and then interim CEO at Liberata Ltd. Richard was also Non-Executive Director at the UK Ministry of Defence from 2007 to 2009. Most recently Richard was the CFO at HR Access, majority owned by Fidelity Investments, in Paris where he was brought in to manage a turnaround assignment. We are delighted that he has joined us and look forward to benefitting from the experience that he will be able to bring to bear on our rapidly growing Company.

CEO'S STATEMENT

PDX Strategic Overview

Our world faces many serious environmental challenges. Natural resources, water, and energy are becoming increasingly scarce and our usage needs to be more efficient. PDX is committed to delivering energy savings and in the next two to three years, we can continue to improve industrial processes by such a degree that enormous savings can be achieved by doing more with what we have today.

Over the longer term we recognise that non-fossil energy sources can be deployed economically and PDX plans to deliver new viable solutions in this market. In the Biofuels arena we are working on ethanol, diesel and algae projects, and these are included in our strategic plans.

PDX's strategic principle and new motto is Exceptional Efficiencies. We are committed to supporting our partners and customers, and delivering better and more efficient products to the market.

Our existing commercial activities and our bank of new opportunities are aligned in terms of our common vision of the future, and the shareholder value that we can achieve by consistent growth of the PDX platforms, encompassing our IP, know-how, design, performance, and operational data.

What makes PDX unique is the combination of applying our powerful IP and know-how across many different and valuable market opportunities. PDX is delivering solutions across a range of markets, with best-in-class partners, where appropriate. We also employ industrial licensing models where our partners and customers use PDX solutions for their businesses.

The corporate structure and mission of PDX is to ensure that each business opportunity is structured in such a way that it facilitates the business line or industrial licensing activity to be spun off, inserted into a joint venture, sold or listed via an IPO. Each business has a separate profit and loss account and its own management, thereby enabling shareholder value creation to be flexible, diverse and optimal across all opportunities.

Over the past year we have created five LOBs - Biofuels; Brewing, Food and Beverages; Public Heath & Decontamination; Industrial Licensing; and New Ventures - that are now in full commercial operation, with a new Water LOB announced today. For the Brewing, Food, and Beverages LOB Heinz-Jurgen Kroner joined us from GEA Group Aktiengesellschaft ("GEA"), one of the leading global system providers for food and energy processes. Bill Schafer joined us from Range Fuels, Inc., a leading cellulosic ethanol technology company, and along with Cary Veith, who joined from Myriant Technologies, LLC, a leading biotech developer and manufacturer of renewable biochemicals, will run the global Biofuels business. Jonathan Bailey has taken on the responsibility of overall Corporate Business Development as well as leading the New Ventures and Water LOBs, driving new business portfolio management within PDX as a whole. Richard Webster is the most recent member of management joining us as the new Chief Financial Officer.

PDX is building its future on driving commercial returns through its six LOBs, which are the foundation for the future. There are, however, a significant number of untapped new business and licensing opportunities and we expect that PDX will continue to create new businesses. PDX shareholder value will be enhanced by strengthening our IP and R&D skills continuously, by developing each new business opportunity, by creating new market solutions and by adding new industrial licenses.

Operational review

Biofuels

Over the past year the PDX's Biofuels business has been transformed and now represents our most exciting and cash generative near term opportunity. Last autumn, PDX made a substantial investment in testing and analysing the reactor technology at ICM's facilities in St Joe, USA. ICM is the plant integrator responsible for the design and build of over 100 of the 186 corn ethanol plants in the USA. Over 600 runs were conducted and the results were modelled and analysed by PDX and ICM. The analysis showed clear benefits derived from the PDX ERS in terms of yield improvement, cycle times and enzyme reduction. Additionally, we were able to redesign the ERS to reduce size, cost and enable seamless operation within a plant's existing operational parameters.

Over the summer of 2010 PDX announced a Phase One group of plants that had contracted to be the first group of operators to install the new ERS. Contracts were signed with the Madrid, Nebraska plant of Mid America Bio Energy & Commodities, LLC ("MABE"), ICM's Marquis Energy, LLV ("ICM") plant and Pacific Ethanol's Boardman plant. PDX recognises the importance of seamless integration and so the Company has adopted a rigorous and conservative engineering programme to ensure that all these operations run smoothly. We were delighted to announce in November that the first installation, at the Pacific Ethanol facility near Boardman, Oregon, had been successfully completed and that operations are progressing well. Initial early performance measures, including ethanol concentration, residual sugars, glycerol, and lactic acid, are consistent with ICM uplift results. The ERS at MABE is now under commission, whilst the ERS at ICM will begin operations in January.

The initial success with Pacific Ethanol has enabled us to today announce that we have signed agreements to install the ERS at their remaining three ethanol plants. In addition, we are delighted to announce today an agreement with Red Trail Energy, LLC to install the ERS at their ethanol plants. These agreements now take the number of ethanol plans utilising the ERS to seven, representing almost 500m gallons of production. We now look forward to rolling out further the ERS across the Generation One corn ethanol industry with confidence. We are utilising relationships built in 2010 with some of the most respected and qualified engineers / integrators in the bio-fuels industry to help execute the commercial roll out which significantly enhances our capability.

In addition to the roll out in Generation One, PDX has been busy developing its strategy and offering for the Generation Two cellulosic ethanol opportunity. We expect to present this in more detail to shareholders in the near future.

In September 2010 Cary Veith and Bill Schafer joined from Myriant and Range Fuels respectively to manage this LOB.

Brewing, Food and Beverages

February 2010 saw the re-launch of the PDX Wort Heater. Despite a successful installation at Shepherd Neame over three years ago and excellent operational results, PDX had chosen to focus on the potentially larger ethanol market to the exclusion of brewing. The new management considered that brewing was still an attractive opportunity for PDX technology and devised a strategy to re-engage. In August the PDX Wort Heater received its approval to operate within the German Reinheitsgebot certification, the leading regulation concerning the quality of beer produced in Germany. The accreditation served to endorse PDX`s system demonstrating that it is able to work consistently within the resources available at each brewery. Following this announcement PDX signed a contract with Oettinger Brewery in September for PDX Wort Heater to be installed in their plant. Installation of this system is expected to take place Q1 2011.

PDX is now enjoying commercial traction with both regional and global brewers and we see an exciting future for this LOB. We expect to extend our offering to brewers with a number of additional applications and are exploring a range of strategic and partnering opportunities in this sector.

In September 2010 the PDX Food business ceased being licensed to Zeal Process Technologies Ltd., and was brought in-house to leverage more investment in engineering and scientific skills. This strategic move will allow PDX to focus not only on sales revenue but also on the development of the technology into this sector.

Post period end Heinz-Jurgen Kroner joined PDX from GEA, where he was CEO of their brewing and beverage division, to head up this LOB.

As part of today's current trading update, we are very pleased to announce that new agreements have been signed with two of the top four global brewers to install the PDX brewing system. These first systems will be installed in early 2011. In addition, we are today announcing an agreement to install PDX's brewing system at one of Germany's largest brewers with operations expected to begin during the middle of the next calendar year.

As well as the new commercial agreements that we have signed, we are also pleased to announce today that we are rolling out two new products as part of our brewing offer. The first is the PDX Pasteurisation, which will enable brewers, food and beverages producers (as well as water producers) to increase the flavour stability of their products, improve the quality and save a significant amount of energy. The second new product announced today is the PDX Disinfection, which using the know-how that we have developed through our work in decontamination has enabled us to create a product for the brewing market that can significantly reduce the amount of chemicals and water used in the disinfection process. These are being developed in cooperation with Oettinger and the other leading German brewer announced today. PDX is also exploring how this product can be used in other production processes.

Public Health & Decontamination

In April 2010 we signed an agreement to form a 50/50 joint venture with Kaercher and are developing civil and military decontamination solutions with them. Kaercher is a world leader in decontamination and the first new products are planned for 2011. In particular we have had a positive early response to our First Responder System which was exhibited to the US Army in October 2010. Our joint venture with Kaercher is progressing well with significant product development already completed, including a range of portable products both military and civilian markets.

As part of the NNL joint venture, we are pleased to announce today that we will be collaborating with the Singapore Defence Force to develop a First Responder System for the Asian market and this product will be available from Q3 2011.

In September 2010 we signed an agreement to form a joint venture with the NNL, owned 60% by PDX and 40% by NNL, to develop products across several potential application areas, including decontaminating radioactive pipes and vessels, and tie-down and contamination control. NNL is a world class provider in the provision of nuclear technology services. Our joint venture with NNL is progressing well and management expects first revenues to occur before the end of 2010. We anticipate UK licensing revenue to the joint venture growing to £5m per year by the middle of 2012 and £20-£30m per annum thereafter. The UK has 39 of the world's 440 nuclear sites and so the global opportunity is even greater.

During our third fiscal quarter Tyco Inc. ("Tyco"), our licensee for fire suppression/installation, launched Aquasonic in 520 and 1040 formats and made significant improvements to the 260 products. This much anticipated launch was only possible following the final Factory Mutual approvals received in May. Although sales have a relatively long lead time, Tyco has begun a global training programme and we are encouraged by the initial pipeline development. The response from distributors has been positive and we expect sales momentum to build over the coming months. PDX's small droplets size means that fire suppression using a misting technology becomes more effective as the small droplets increase the surface area, which then increases the rate of evaporation that displaces oxygen.

Industrial Licensing

On November 5th, 2010 PDX announced a Joint Development Agreement ("JDA") with Proctor and Gamble ("P&G") that has enabled it to develop specific applications using the PDX reactor technology in a wide range of its production processes.

The JDA is the culmination of trials that commenced in the spring of 2010. The new agreement will enable P&G's technical centres to embed the PDX technology inside their global facilities. This will enable them to assess the potential cost and energy savings of using PDX's technology in its manufacturing processes.

P&G and PDX expect to agree on an annual license fee for using the technology in a range of manufacturing environments. The JDA can be extended to other parts of P&G's business on a division by division basis and PDX expects its technology to have broad application across P&G's product manufacturing range.

PDX will explore similar commercial relationships across other significant industrial fields.

New Ventures

As PDX's technologies have a wide universe of applications, PDX management created a separate business line to systematically evaluate business opportunities across a current portfolio of over 50 projects. This requires prioritising and managing the commercial development of our best ideas, determining the optimal route to market, and where appropriate, identifying best-in-class strategic partners.

To illustrate the breadth of opportunities:

§ The PDX reactor has demonstrated ability to hyper swell starch and appropriate patents have been filed. Starch is used in industries including food, brewing, paper and packaging, coatings, pharmaceuticals.

§ In wastewater PDX's investigatory trials have shown promising results. The reactor technology maximises the efficiency of the waste streams and thus increases methane production. This helps enable other technologies (methane based dryers, combustible engines, micro turbines) while reducing the amount of waste disposed via gasification or landfill.

§ In aviation, we are developing a number of applications utilising the atomisation technology with a leading aircraft constructor.

Water

PDX today announces that it has created a new Water LOB focussed on waste water and desalination projects. As part of the preparatory work that the Company has undertaken, successful tests were conducted at a municipal plant in the USA which led to major enhancements in quality and composition. PDX expects the market size of the municipal waste market in the US to be approximately 15,000 plants.

Outlook

PDX has entered the fiscal year 2011 in a strong position. The organisation has six LOBs in full commercial operation and a strong pipeline of opportunities. This platform affords us an outstanding opportunity to drive significant growth over the next several years and deliver meaningful value for shareholders.