Banking and Debt Restructuring Update

PURE WAFER PLC

(AIM: PUR)

Banking and Debt Restructuring 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 its banking and debt restructuring.

Following the successful placing and open offer completed in November 2012 (the "Placing and Open Offer"), Pure Wafer has now completed the restructuring of its balance sheet by refinancing its debt with HSBC (the "Refinancing"). The Refinancing is in the form of a $5.6m (£3.5m) term loan over 4 years, with a $1.6m (£1.0m) revolving facility which is available to be drawn down at any time during the 4 years for any capital expenditure requirements. These loans attract interest rates of 3% over Libor for all utilised funds, with a one-off arrangement fee of $120k (£75k).

In transferring its banking arrangements to HSBC, Pure Wafer has negotiated certain discounts and fee waivers with its previous bankers, RBS and Citizens, in consideration for full repayment of their debt and facilities, These discounts and fee waivers amount to a total saving of $615k (£384k) to the Company. The combined benefits of the Placing and Open Offer together with the Refinancing has resulted in savings to Pure Wafer through discounts and fee waivers through negotiations with our debt providers of $1,018k (£636k) and an annual cash flow benefit of $3.94m (£2.46m).

Peter Harrington, Chief Executive, stated:

"We are delighted to announce that the restructuring and refinancing of our debt has now been completed; a significant step which gives long term stability to the Company. Pure Wafer is now in a financially robust position to enable us to take advantage of the strong demand that we are experiencing for our products, particularly from Asia and the US. With a long term growth forecast for the semiconductor industry we believe that our financial position will give us a strong foundation for further growth."