Microsaic Regulatory News (MSYS)

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27 March 2024

Microsaic Systems plc

("Microsaic" or the "Company")

Company update

Microsaic Systems plc (AIM: MSYS), the developer of micro-electronic instruments and analytical solutions, is pleased to announce the following update, further to our announcement on 16 February 2024.

Having passed quality control specifications, shipments of existing MicroTox® reagent stock have begun to meet the demand from clients that are operating Modern Water instruments currently in service. Stock levels are sufficient to meet this demand until restarted production output from our York facility passes testing and quality control for shipping, as scheduled for April.

Microsaic has also agreed terms with GX Group, based in Usk Wales, for the continued manufacturing and further development of Continuous Toxicity Monitoring instruments ("CTMs") and related consumables previously sold by the Modern Water business.

In Qatar, 27 CTMs previously delivered by Modern Water are now being installed by our local distributor to monitor Doha's public water system continually by online testing. Consumables including MicroTox® reagents are being prepared for delivery to enable the instruments to be commissioned and operated.

In addition, there is a new sales pipeline developing for the supply of our laboratory-use LX and portable field-use FX water testing instruments, to existing and potential new customers, all of which instruments utilise different forms of MicroTox® reagents.

Sulphate Reducing Bacteria Test kits ("SRB kits") are being quality checked and initial production of SRB kits is expected shortly thereafter, making them available for purchase. SRB kits are used to identify sulphate-reducing bacteria which are highly reactive and corrosive. These bacteria are known to cause corrosion issues in submerged metal and concrete including pipelines by degrading hydrocarbons, a serious concern for the oil and gas industry.

We are integrating our Modern Water and Microsaic Systems' technologies and the Company is better positioned to provide a total fluid testing solution through the provision of both the testing and analysis equipment with support services. This will cover the testing and analysis of water and discharge of industrial fluids. Our point of need testing capabilities now comprise the early warning of toxic content monitored by our Modern Water technology which can then be analysed in detail using Microsaic's miniaturised mass spectrometer detection instrument, built around the 4500MiD®. This enhanced capability is attracting significant market interest not just from original equipment manufacturers ("OEMs") and distributors, but also from international water supply companies. Whereas centralised laboratory testing has logistical challenges and can cause delays to achieve timely results our systems are all designed for low energy use, enhancing our capacity for localised point-of-need testing.

Bob Moore, Acting Executive Chairman of Microsaic, commented:

"The combination of Modern Water and Microsaic technologies is underway as planned. This will give our customers the enhanced service and capabilities that our broad range of equipment can provide for testing and analysis of corrosive, toxic and potentially carcinogenic chemicals including PFAS. We look forward to building this wider scope capability and implementing our business plan around the reset business on an international scale."

About Microsaic Systems

Microsaic has over 20 years' experience in microelectronics and development of instrumentation and having acquired the Modern Water business has diversified and widened its capabilities. The Company has an extensive and innovative patent portfolio in industry-leading technology designed and developed for "Industry 4.0" application serving markets in diversified Industries, Human and Environmental Health. Microsaic's very energy-efficient, micro-system solutions have enabled analytical detection and characterisation at the point-of-need, whether within a mobile testing capability, conventional laboratory setting, or within a bioprocessing facility for continuous detection of data at multiple steps in the process workflow.

Microsaic's products and solutions are commercially available through global markets via a network of regional and local partners, targeting its core laboratory, manufacturing and point-of-need applications.