Trading Update for nine months to 31 December 2013

ENERGY TECHNIQUE PLC

("The Company")

TRADING UPDATE FOR NINE MONTHS ENDED 31 DECEMBER 2013

The Board is pleased to announce its unaudited trading results for the nine months ended 31 December 2013. Group profit before tax was ahead of Management's expectations at £414,000, representing 387% growth over the corresponding 9 months, with operating profit for Diffusion, the Company's trading business, increasing by 155% to £605,000:

Diffusion achieved 31% sales growth in the nine months ended 31 December 2013, continuing the strong fan coil led sales growth reported in the 30 September 2013 half-year accounts. Sales in the third quarter were particularly strong at £2.64 million, arising from a number of large projects including high-end residential work.

Sales of the smaller commercial heating product group fell marginally, consistent with continued weaker demand from UK Retail High Street customers, but this was compensated for by increased fan coil sales. A number of changes have been made to the sales and marketing effort to promote future growth of commercial heating sales and the early signs are these are starting to show through.

Group net assets at 31 December 2013 amounted to £1.51 million (31 March 2013: £1.53 million) representing a net asset value of 58 pence per share. The net in-hand cash position at 31 December 2013 amounted to £615,000 (31 March 2013: £568,000). In the nine months ended 31 December 2013, cash of £300,000 was applied on share buy-backs with Elsina Limited, the then largest shareholder. In addition to an in-hand cash position, the Company also had un-drawn committed invoice discounting facilities of £0.75 million.

Fan coil sales are expected to be the Company's immediate growth driver. The fan coil market is now starting to show growth, borne out by the high level of enquires and large London based projects earmarked for development by the leading property owning companies. Diffusion has a class leading range of fan coils, enhanced by the new eco-friendly 270 range, and it is well placed to benefit from improving fan coil market conditions. The Board is pleased by the strong set of results for the first nine months that have laid the foundations for an expected increase in sales in excess of 20% on the prior year to over £9.0 million for the full year ending 31 March 2014.

For further information:

Walter Goldsmith Chairman 020 8783 0033

Leigh Stimpson Managing director 020 8783 0033

Ed Frisby/Ben Thompson finnCap Limited (Nominated Adviser) 020 7220 0500

NOTES TO EDITORS

With over 50 years in the heating and ventilation industry ("HVAC"), the Company's operating subsidiary Diffusion is one of the oldest and most established manufacturers of HVAC products in the UK. Diffusion is a market leader in the manufacture of premium quality fan coils and commercial heating products. Diffusion and Energy Technique are brand names recognised as highly engineered, quality products providing leading edge performance and energy efficiency.

Diffusion's products are installed into hotels, commercial offices, retail outlets, schools, hospitals, and more recently high-end residential. Diffusion has excellent relationships with many blue chip clients including Land Securities, Marks & Spencer, Boots, City Inn Hotels, and Stanhope Properties. All products are designed, developed and manufactured at Diffusion's 30,000 sq. ft. manufacturing facility in West Molesey, Surrey, offering premium quality products, designed specifically to meet customers' bespoke requirements.