Inditherm Industrial Process Solutions

Inditherm plc

("Inditherm" or the "Company")

Inditherm Industrial Process Solutions

In its Interim Results for the six months ended 30 June 2010, as announced on 23 September 2010, the Company confirmed the Board's decision to exit the process solutions part of the Industrial business (the "Process Solutions Business") to focus resources on Medical sectors, whilst retaining the key aspects of the Company's intellectual property rights.

Today Inditherm announces that it has signed an exclusive distribution agreement with ADI Inditherm Ltd ("ADI"), a wholly owned subsidiary of Systems ADI Group Ltd (the "Agreement") under which ADI will promote heating solutions to the food, chemicals, pharmaceuticals and petrochemicals markets utilising heating pads that will be manufactured by Inditherm for ADI. Under the Agreement, Inditherm has also granted a license to ADI to use know-how in respect of the application of the Inditherm heating solutions technology and a license to use Inditherm trade marks. Inditherm will retain all intellectual property rights and rights to manufacture the core polymer technology.

Under the Agreement, ADI will pay Inditherm a nominal cash consideration and will bear costs of up to £10,000 that would be otherwise borne by Inditherm in implementing the Agreement. In addition, the employment contracts of staff allocated to the Process Solutions Business will TUPE transfer to ADI under the Agreement.

Inditherm took a £45,000 charge through its income statement for the six months ended 30 June 2010 reflecting the impairment of the total value of inventories and tangible assets of the Process Solutions Business. The Process Solutions Business segment of Inditherm realised a loss for the year ended 31 December 2009 on turnover of approximately £255,000.

Inditherm will continue to promote its standard product offerings in the Industrial markets (currently drum and IBC heating systems). For the year ended 31 December 2009 sales of these products amounted to approximately £106,000.

Mark Abrahams, Chairman, commented: "This deal enables Inditherm to concentrate its limited resources on its core medical market whilst retaining its critical know-how."

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