Half Yearly Report

30 March 2011

PURE WAFER PLC

("Pure Wafer" or "the Company")

Interim Results for 6 months ended 31 December 2010

Pure Wafer plc, the provider of high quality silicon wafer reclaim services for many of the world's leading semiconductor manufacturers as an integral part of their cost control programmes, today reports its interim results for the 6 months to 31 December 2010.

HIGHLIGHTS

·; Revenue $13.8m (6 months to 31 December 2009: $11.8m)

·; EBITDA $1.6m (2009: loss $0.2m)

·; Gross margin 28.3% (2009: 18.2%)

·; Pre-tax loss $3.0m (2009: $5.0m)

·; Pre-tax loss $2.9m before restructuring costs and other losses (2009: $4.4m)

·; Basic loss per share 2.40c (2009: loss per share 3.98c)

·; Net cash inflow from operating activities $2.9m (2009 outflow : $2.7m)

Operational Highlights

·; Continuing increase in volume sales, 28% up from comparative period

·; Further ongoing cost reductions successfully implemented, cost per unit 14% down

·; Productivity at highest ever levels

·; MCS accreditation achieved for our products in the solar photovoltaic market

Stephen Boyd, Chairman, Pure Wafer, commented,

"The semiconductor industry has moved out of recovery and into growth and the Group has been successful in implementing price increases across its customer base while continuing to reduce costs. Our entry into the solar market has made significant strides and we are confident that with our solar products being MCS accredited that significant revenue streams will be achieved to supplement those of our wafer reclaim business."

ENQUIRIES

PURE WAFER PLC

("Pure Wafer" or "the Company")

Interim Results for 6 months ended 31 December 2010

Chairman's Statement

Introduction

During the period to 31st December 2010 we continued to enjoy the recovery and growth of the semiconductor industry, with additional volume business from all geographical areas in which we are active.

The pricing pressure that we experienced during the downturn ceased with no further price concessions given during the period.

The market conditions during this and prior periods prompted one of our major competitors, Rasa, to announce their exit from the wafer reclaim sector. This is a significant event due to Rasa being one of the largest wafer reclaim companies in the world and one that serviced the global market. The subsequent purchase of the Rasa business has run into difficulties and delays, due to the withdrawal of one of the Joint Venture partners. We continue to monitor this situation very closely.

Operational

During the period we saw business continue its recovery with volume sales, when expressed as 300mm equivalents, up 10% compared to the prior period, and up 28% when compared to the comparative period to 31st December 2009.

Our cost reduction activities have continued to be successful, with reductions across all areas, including consumable costs and some of our fixed costs. This has now reduced Pure Wafer's manufacturing unit costs by 14% compared to the comparative period to 31st December 2009, without affecting either our manufacturing output capability or the quality of our product. We continue to work on cost reduction programmes.

Financial performance

·; Revenue $13.8m (6 months to 31 December 2009: $11.8m)

·; EBITDA $1.6m (2009: loss $0.2m)

·; Gross margin 28.3% (2009: 18.2%)

·; Pre-tax loss $3.0m (2009: $5.0m)

·; Pre-tax loss $2.9m before restructuring costs and other losses (2009: $4.4m)

·; Basic loss per share 2.40c (2009: loss per share 3.98c)

·; Net cash inflow from operating activities $2.9m (2009 outflow : $2.7m)

The board is encouraged by the success of the actions of the management team during the period to reduce costs across all sectors of the business as well as maximising revenue during what was still a difficult trading period.

Solar PV

Our entry into the solar photovoltaic market has seen some success during the period, following delays in the accreditation process, due to a lack of testing authorities and facilities in the UK. We can now report that all our solar products are MCS (Microgeneration Certification Scheme) approved, and that Pure Wafer is also accredited as a full MCS approved installer. Therefore any solar installation of either Pure Wafer products or any installation installed by Pure Wafer will enable our customers to take advantage of the UK Government's feed-in-tariff.

Outlook

The semiconductor industry has moved out of recovery and into growth. This is evidenced by our customers' announcements of new 300mm manufacturing facilities and increased capital expenditure plans. The increasing volumes on both 300mm and smaller diameter wafers continue as the industry moves from strength to strength. Importantly there has been an acceptance of price increases across the customer base and an acknowledgement that the low prices of previous periods were unsustainable. The Group has therefore been successful in implementing price increases across its customer base.

Our entry into the solar market has made significant strides with the achieving of MCS accreditation for our products, which are marketable as the lowest carbon footprint and wholly UK manufactured, whilst sharing most of the existing overhead costs with our core business. Since the period end we have received orders for both domestic and commercial solar projects some of which have been installed and completed. Our order book continues to grow, but we are mindful of the Government's proposal to change the level of feed-in-tariff for installations over 50Kw, and we will be monitoring the adoption of this new proposal very closely. Participation in the fast growing solar market is an exciting move for Pure Wafer and we are confident that with our solar products being MCS accredited that significant revenue streams will be achieved to supplement those of our wafer reclaim business.

Stephen Boyd

Chairman

30 March 2011

PURE WAFER PLC

Interim Results for 6 months ended 31 December 2010

Consolidated income statement

The results stated above arose entirely from continuing activities.

Consolidated statement of comprehensive income

PURE WAFER PLC

Interim Results for 6 months ended 31 December 2010

Consolidated Balance Sheet

PURE WAFER PLC

Interim Results for 6 months ended 31 December 2010

Consolidated Cash Flow Statement

PURE WAFER PLC

Interim Results for 6 months ended 31 December 2010

Notes to the Accounts

1. Basis of preparation

The information for the year ended 30 June 2010 does not constitute statutory accounts as defined by the Companies Act 2006. A copy of the statutory accounts for the year ended 30 June 2010 has been delivered to the Registrar of Companies, upon which an unqualified audit report was given.

The annual financial statements of Pure Wafer Plc are prepared in accordance with IFRS as adopted by the European Union. These interim results are prepared on the basis of the accounting policies which the company will use in preparation of the financial statements for the year ended 30 June 2011. There are no changes from the policies disclosed in the 2010 financial statements.

Going concern

The group's business activities, together with the factors likely to affect its future development, performance and position, are set out in the Chairman's Statement on page 2. The directors have considered the group's performance to date and reviewed the cashflow forecasts for the forthcoming period. The forecasts indicate that whilst cash will need to be tightly controlled, the directors believe the facilities that are in place will be sufficient for the business to continue trading for the foreseeable future. Accordingly, the directors have a reasonable expectation that the group and the company have adequate resources to continue in operational existence for the foreseeable future. For this reason, the interim financial statements continue to be prepared on a going concern basis.

2. Reconciliation of other gains and losses

3. Earnings per share

The basic earnings per share is calculated by dividing profit attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year. For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares.

Earnings per share have been calculated as follows:

4. Cash flows from operating activities

5. Changes in equity

6. Circulation

A copy of this announcement is available from the Company Secretary, Pure Wafer plc, Central Business Park, Swansea Vale, Swansea, SA7 0AB. A copy is also available on the Company's website: www.purewafer.com.