Disposal of Interest in Evervision

Densitron Technologies plc

Disposal of Interest in Evervision

Densitron Technologies plc ("Densitron" or the "Group") today announces that it has disposed of its entire 24.48% shareholding in Evervision Electronics Co Ltd ("Evervision") to Everpower Investment Corp. Ltd and Forever Investment Corp. Ltd for consideration of £3.4 million in cash.

Evervision is a Taiwanese display manufacturer with factories in Taiwan and mainland China, in which Densitron owns 24.48% of the share capital (the "Evervision Interest").

The Group's directors have worked hard to find means of generating a return on this asset. In December 2009 the Group received a payment by way of capital reduction of £1.2m and received a further £0.5m on 3 September of this year. The disposal of the remaining shares in Evervision will realise a further £3.4m resulting in a total return from the investment over the last 12 months of £5.1m.

The Group did not have significant influence over Evervision and the results of Evervision have never been consolidated in the Group's accounts. The Evervision Interest was held as an asset available for sale in the Group's accounts at a value of £4.6m at 30 September 2010. The disposal will trigger an exceptional loss of approximately £1.3m, although it should be recognized that despite the reduction in net asset value, the net asset value will now consist of a substantial amount of free cash.

The capital reductions and disposal are the only significant returns that the Evervision Interest has provided to the Group since its acquisition in 2001 and, due to a change in strategy by the Evervision Board it is unlikely that further capital reductions or other distributions will be made by Evervision in the near to medium term. The board, therefore, considers that the sale represents the best opportunity for the Group to realise a substantial return from this investment. The board is considering several options on how to use these funds, including an acquisition strategy.

Evervision remains a supplier to the Group and the Group does not anticipate any operational impact as a result of the disposal.

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