Legal proceedings

Densitron Technologies plc

("Densitron" or the "Group")

Legal proceedings

Densitron Technologies plc ("Densitron" or the "Company" or the "Group") announces that it has settled the claim made against the Company by the landlords of the property in Newcastle previously occupied by a former subsidiary, Densitron Ferrograph Limited.

As previously advised the Company has been working towards a negotiated settlement and having sought legal advice the Directors' are satisfied that the agreement reached is in the best interests of the Company and its Shareholders.

It was agreed that the details of the settlement would remain confidential but in essence the Company has agreed to a settlement amount and the rectification of the lease at the current market rent.

The Board considers that the property is in good condition and is located in a prime location near to the Tyne tunnel. It has engaged an agent to market the property on its behalf and the agent is confident that a tenant or an assignee can be found for the building in due course.

Jan Holmstrom, Chairman, commented:

"The settlement that has been agreed is in the best interests of the Group as a whole and will now enable the Board and management to concentrate on driving the business forward".

Enquiries:

Densitron Technologies plc

Grahame Falconer / Tim Pearson

Tel: 0207 648 4200

Westhouse Securities Limited

Martin Davison

Tel: 020 7601 6100