Trading Update

PURE WAFER PLC

(AIM: PUR)

Pre-Close Trading Update

21 January 2014

Pure Wafer plc ("Pure Wafer" or "the Company"), one of the leading global providers of high quality silicon wafer reclaim services to many of the world's largest semiconductor manufacturers and foundries as an integral part of their cost control programmes, is pleased to provide the following update on current trading in advance of the announcement of the Company's interim results for the period ended 31 December 2013. The interim results are expected to be published during the week commencing 10 March 2014.

Trading Update

Trading in the period to 31 December was in line with market expectations and, the previously announced, capacity expansion programme to increase 300mm capacity by 40%, is now substantially completed.

The majority of production equipment required for the increased capacity in Swansea, UK, has been ordered and delivered with several key items already installed and currently in production. The Swansea programme will be completed during January 2014, when all new capacity related equipment will be available for manufacturing.

The installation of the additional manufacturing equipment for Prescott, US, will commence in early 2014 and become fully operational during the first half of 2014.

Outlook

Whilst the Board remains confident of meeting market profitability expectations for the full year, revenue is likely to be slightly below expectation due to greater pricing pressure in the global wafer reclaim market. Specifically, our competitors based in Japan are benefitting from changes in the USD/YEN exchange rate, giving them a competitive advantage relative to their home based costs. This has enabled them to offer competitive pricing to worldwide customers. We estimate group turnover for the current year as a whole is likely to be circa 5% below market expectations.

Pure Wafer is confident that it can meet these pricing challenges and, with improving productivity and continued vigilance on tight cost controls, expects to meet current market expectations in terms of both cash generation and profits.