PUR.L Regulatory News (PUR)

PURE WAFER PLC

(AIM: PUR)

Trading Update

Pure Wafer plc ("Pure Wafer" or "the Company"), the provider of high quality silicon wafer reclaim services for many of the world's leading semiconductor manufacturers, is pleased to provide the following update on current trading in advance of the announcement of the Company's preliminary results for the year ending 30 June 2012.

Pure Wafer confirms that trading during the second half of its financial year has continued to be strong, building on the run-rate achieved in the first half as reported in the interim results statement and is currently running at record levels of production at both the Swansea and Prescott facilities. The semiconductor market continues to show positive signs for 2012 and beyond which gives confidence that the current levels of business will be sustainable into the next financial year.

Pure Wafer has continued to see increased demand for its wafer reclaim services mainly from the US and Asian markets and also from a stable European sector with demand growing as the global semiconductor industry continues its recovery and growth.

Pure Wafer and indeed the semiconductor industry as a whole is to a very large extent insulated from the economic problems of the Eurozone with revenues denominated in USD and because the semiconductor industry is a global market which is currently being driven by the increasing demand for hand held devices in the heavily populated emerging economies of China, India, Russia and Brazil. With industry analysts forecasting growth through to 2015, our major customers have committed and commenced substantial new investment in 300mm silicon chip manufacturing facilities amounting to tens of billions of US dollars, demonstrating their confidence in sustainable growth, which will give rise to further wafer reclaim opportunities in the near future.

With both manufacturing sites in Swansea and Prescott running at record levels of productivity and with overall levels of costs being tightly managed, Pure Wafer's cost per unit is currently running at an all time low, giving further confidence in the strength of the business going forward.

Pure Wafer's operations are scaled to accommodate the increasing demand and together with our lower cost of manufacture are well placed to take advantage of the current increasing activity and the forecast long term growth in the industry.

Solar pv

Despite the challenges set by the Government's indecision over levels of feed-in-tariffs and the influx of Chinese imports, we expect that Pure Wafer's solar division will continue to produce results in line with management expectations through the remainder of this financial year and into the next period.

The Company further confirms that it is meeting all obligations under the financial restructuring agreement, details of which are set out in the annual report and accounts.