Trading Statement

Amphion Innovations plc

Trading Update

London, UK, 2 August 2011 - Amphion Innovations plc (LSE: AMP) ("Amphion" or the "Company"), the developer of companies in the medical and technology sectors, expects revenue for the first six months to be US $2.6 million as compared to US $1.6 million for the first six months of 2010. The increase in revenue is mainly due to the improved performance of DataTern, the Company's Intellectual Property licensing programme, which increased revenue from US $700,000 for the first six months of 2010 to US $2 million for the first six months of 2011. Operating loss was reduced from US $1.1 million for the first six months of 2010 to $130,000 for the first six months of 2011 as a result of the increase in revenue and a decrease in administrative expenses from US $2.4 million to US $1.9 million. The decrease in administrative expenses reflects the Company's continuing commitment to reduce its operating costs. The Company is expected to have a net profit of US $190,000 for the first six months of 2011 as compared to a loss of US $2.9 million for the first six months of 2010.

The Company's net asset value is expected to grow from US $29.2 million at 31 December 2010 to US $29.6 million at 30 June 2011, the increase being primarily as a result of foreign currency adjustments. The net asset value is estimated to hold steady at US 22 cents. It is important to note that DataTern is valued at only US $1 million on the books of the Company.

Intellectual Property Licensing Programme

In April Microsoft and SAP filed actions against DataTern in New York asserting generally that our '402 and '502 patents are invalid and not infringed. In response, DataTern retained a well respected law firm, McCarter & English LLP, to meet this challenge. In working with McCarter & English over the last few months DataTern has conducted a thorough review of its legal strategies and options. This work has served to confirm DataTern's continuing belief that its intellectual property is strong and the extent of infringement is broad.

As a result of this work, DataTern has now taken concrete steps to combat these allegations and to bolster our patent rights. First, DataTern has filed a motion in New York to dismiss or at least stay these actions while DataTern continues litigations in Texas against users of the patented technology. Second, DataTern will be filing an application with the U.S. Patent and Trademark Office (USPTO) to reexamine the '402 patent. Under this procedure, a patent may be maintained as is, expanded, reduced or even rendered invalid. DataTern's confidence in the validity of this patent justifies exposing it to re-examination to test and strengthen its validity. As we reported previously, the '502 patent successfully completed re-examination by the USPTO with all 18 original claims intact and 26 new claims added.

We look forward to working with our new legal partners as we seek fair and reasonable licensing agreements with the companies using this important technology.

Amphion's Partner Companies and Net Asset Value

The market for financing of private emerging technology and med-tech companies remains extremely challenging. Provided our IP programme continues to make progress, Amphion's need for capital at the parent company level should remain relatively small. We anticipate needing to provide continuing support to our Partner Companies and we will continuously re-evaluate the need for external funding for Amphion in the light of progress at DataTern. At the level of each Partner Company, we continue to devote considerable time and effort to the generation of financial and operating support through strategic partnerships of various kinds and through the monetization of the intellectual property which, for example, is underway and making good progress at Axcess. Our Partner Companies continue to generate valuable new intellectual property, as evidenced by the patents recently issued to both FireStar and m2m.

We continue to have confidence in both the strength of the IP programme and the basic technology and market opportunities for each of our Partner Companies and we are working hard to preserve and extract as much value as possible from each one. While it is too early to be able to say that the worst is behind us, we are encouraged by recent developments and optimistic about Amphion's future prospects for 2011 and beyond.

We expect to announce our Interim Results for the six months to 30 June 2011 on 23 September 2011.

For further information please contact:

Amphion Innovations

Charlie Morgan: +1 (212) 210-6224

Cardew Group

Tim Robertson: +44 020 7930 0777

Seymour Pierce Limited, Nominated Adviser

Freddy Crossley/ Mark Percy: +44 020 7107 8000

About Amphion Innovations plc

Amphion (LSE: AMP) builds shareholder value in emerging companies in the medical and technology sectors, by using a focused, hands-on company building approach, based on decades of experience in both the US and UK. Amphion has significant shareholding in 7 Partner Companies developing proven technologies targeting substantial commercial marketplaces. The Amphion model has been refined to optimise the commercialisation of patents and other intellectual property within the Partner Companies. The Partner Companies collectively own or control over 200 separately identified pieces of intellectual property, a number which grows rapidly each year.

On the web: www.amphionplc.com