Trading Update and Return of Capital

Densitron Technologies plc

Trading update and Return of Capital

Densitron Technologies plc ("Densitron" or the "Group") is pleased to provide an update on current trading. Since the interim results were announced on 13 September 2010, trading conditions have remained favourable.

Revenue for the year to date is approximately 65% per cent ahead of the same period last year with all divisions returning a profit. The Group continues to develop a significant order book.

Following receipt of the proceeds from the disposal of the Group's stake in Evervision, as announced on 4 October 2010, the Board has reviewed its growth strategy and capital requirements. Following this review, the Board has concluded that the Group can achieve its growth targets from the cash being generated from operations and accordingly has resolved to return approximately £3.5 million (or approximately 5 pence per share) to shareholders.

The board is reviewing the most appropriate mechanism for the return of capital and expects to make a definitive announcement as to the timing and method of this payment early in the New Year.

Further information: