Trading update

13 February 2012

Toumaz Limited

Year-end trading update

Toumaz Limited (AIM: TMZ, 'Toumaz', or 'the Group'), a pioneer in low cost, ultra-low power wireless communications technology, announces a trading update for the year ended 31 December 2011. The Group has traded in line with the Board's expectations and at 31 December 2011 had a cash balance of £2.2m.

In order to strengthen the focus of both the Group's healthcare and semiconductor activities, Toumaz was reorganized into two distinct businesses at the end of 2011; Toumaz UK covering health technology solutions, and Toumaz Microsystems covering the design and development of semiconductor chips and solutions for low power wireless connectivity.

Toumaz UK (Healthcare business)

In July 2011, the Sensium disposable digital plaster received 510(k) approval by the US Food and Drug Administration, approving it for use in US hospitals, which was a key milestone for the Group.

Following this approval, Toumaz established a joint venture with California Capital Equity ('CCE') to commercialise the Sensium Plaster to hospitals. The joint venture, Toumaz US, is owned 80% by CCE and 20% by Toumaz and the Group will also receive royalty on sale of all products containing Toumaz IP. Initial launch in a hospital in Los Angeles is on track for the end of Q1 2012 and a second hospital has now been identified. A general launch is expected during the second half of 2012.

Toumaz UK continues to work with its strategic partners to expand its Sensium product range to applications outside of hospitals, including non-disposable devices for continuous, wireless monitoring of the body in the home or on the move.

The Group has also entered into a non-exclusive license agreement with a newly established company to use the Sensium technology for sports and fitness applications worldwide, excluding North America. The terms include a license fee and product development fees exceeding £1m, with royalties on the sale of all products including Toumaz IP. Products are expected to be ready for commercialisation during the second half of 2012.

Toumaz Microsystems

Toumaz Microsystems designs, develops and sells semiconductor chips and solutions for the growing embedded wireless connectivity market, addressing opportunities in a wide range of internet connected devices. These include home and enterprise automation, healthcare, smart power, security/monitoring systems, intelligent toys and other connectivity-centric cloud-enabled systems.

Toumaz Microsystems' strategy is to deliver both low-power and high-performance connectivity solutions addressing both ultra low-power, battery-operated connected devices and also high data-rate devices needed for wireless audio and video delivery.

The business has secured investment and support from Imagination Technologies Group plc (LSE:IMG, 'Imagination') as a strategic partner.

Telran, the world's lowest power radio system-on-chip, was cleared for European and US distribution in October 2011 and is gaining market traction with supply agreements already in place with customers including Milgenco and Mouser Electronics. Xenif, the multimedia and internet connectivity chip launched at the end of 2010, shipped in increasing volumes during 2011.

A key focus at Toumaz Microsystems is developing a new multi-standard connectivity chip, an ultra-low power radio receiver and transmitter incorporating the newly approved IEEE standard 802.15.6. It will be one of the first chips to be based on this new standard and will specifically target Body Area Networks and medical devices. In combination with other existing low power radio standards on the same chip it will also be used for a range of domestic consumer wireless applications.

As announced separately today, the Group has secured £11.2m of investment in order to be able to take advantage of the opportunity to rapidly develop the first chip conforming to this new standard.

Professor Chris Toumazou, CEO of Toumaz, commented:

"2011 was a transformational year for us, formalising agreements with and investment from a number of international strategic partners to support R&D, commercialisation and routes to market.

"Our venture with CCE in the US to commercialise the Sensium digital plaster is an exciting opportunity in the wireless healthcare market and is a great endorsement of the use of our technology in hospitals.

"Following the successful launch this year, the growing market traction of our key ultra-low-power chip Telran and WiFi-connected audio and broadcast solution Xenif are very exciting, with volume orders now coming through.

"Complete wireless platforms for machine to machine connectivity, enabling home and consumer solutions are gaining traction and we have the technology to set the standards in this market.

"The fundraising announced today gives us the additional funds to take advantage of the opportunity to produce the first chip based on the new IEEE standard. There are a large number of market opportunities for low power wireless and we are now in a great position to provide the consumer electronics industry with the solutions for them."

Enquiries:

About Toumaz - (www.toumaz.com)

Toumaz is pioneering low cost, ultra-low power wireless technologies for a wide range of markets including medical monitoring and internet-connected consumer devices.

The Group has two businesses; Toumaz UK covering health technology solutions, and Toumaz Microsystems covering the design and development of semiconductor chips and solutions for low power wireless communication.

Toumaz UK provides wireless healthcare monitoring solutions for the hospital and home health markets. Toumaz's licensable smart sensor interface and transceiver platform, Sensium, is a leader in real-time wireless monitoring of the body's vital signs. Sensium has the potential to transform medical monitoring and reduce the cost of healthcare by wirelessly connecting individuals to healthcare providers - simply, affordably and unobtrusively. For healthcare professionals, this creates new opportunities for pro-active monitoring and improved quality of care. For patients, it delivers new opportunities for lifestyle-compatible personalised healthcare.

Toumaz Microsystems designs, develops and sells semiconductor chips and solutions for the growing embedded wireless connectivity market, addressing opportunities in a wide range of internet connected devices. These include home and enterprise automation, healthcare, smart power, security/monitoring systems, intelligent toys and other connectivity-centric cloud-enabled systems.

Its key product, Telran, the world's lowest power radio system-on-chip forms the basis for Toumaz UK's Sensium platform.

Toumaz is an AIM listed company (AIM: TMZ) with development centres in Abingdon, UK and Taipei City, Taiwan.