Zotefoams Regulatory News (ZTF)

Zotefoams plc

("Zotefoams" or "the Company")

Trading Update

7 January 2015 - Zotefoams, a world leader in cellular material technology, today provides a trading update following the Company's financial year end on 31 December 2014.

For the year ended 31 December 2014 Zotefoams will report sales growth in all major areas of the business with overall sales approximately 10%1 ahead of 2013 in reporting currency which is equivalent to growth of approximately 15% in constant currency.

In constant currency, High-Performance Products sales grew by approximately 60% while sales in MuCell Extrusion, our technology licensing business, increased by approximately 40%. Polyolefin sales volumes increased by 9% in the year, although the fourth quarter was impacted by delayed shipments. While it is normal to have some carry-over of planned shipments from month to month, the level was approximately £1.5m higher than we expected. This shortfall, which will despatch in early 2015, will result in a lower level of profitability from Polyolefin foams than previously anticipated. These delays were a result of unanticipated administrative bottlenecks following the implementation of our new ERP IT system. While we are confident that all substantive issues have now been resolved there was insufficient time to ship all orders before year end. We enter 2015 with a revenue backlog from Polyolefin foams as well as a strong order book for the start of the new year.

The Board expects to report an earnings outcome slightly below the lower end of market expectations when preliminary results are announced on Tuesday 17 March, 2015. With 2014 seeing strong operating profit2 growth and sales momentum into 2015, the Board remains confident of continued progress in the future.

About Zotefoams plc

Zotefoams plc (LSE - ZTF) is a world leader in cellular material technology. Using a unique manufacturing process with environmentally friendly nitrogen expansion, Zotefoams produces lightweight foams in Croydon, UK and Kentucky, USA for diverse markets worldwide through its global sales force. Zotefoams also owns and licenses patented MuCell® microcellular foam technology from a base in Massachusetts, USA to customers worldwide and sells T-Tubes® advanced insulation systems made from its patented ZOTEK® fluoropolymer foams.

www.zotefoams.com

ZOTEK® is a registered trademark of Zotefoams plc. MuCell® is a registered trademark of Trexel Inc. T-Tubes® is a registered trademark of UFP Technologies Inc.

1 Sales made by joint ventures as well as those made by Zotefoams plc and its subsidiaries.

2 Before exceptional items