Trading update

27 January 2012

PhotonStar LED Group plc

2011 Trading Update

PhotonStar LED Group plc (AIM: PSL, "PhotonStar" or "the Group"), the British designer and manufacturer of smart LED lighting solutions, provides an update on trading for the year to 31 December 2011.

Headlines

• Revenue up 126% to £6.1m (2010: £2.7m)

• Gross profit up to £2.2m (2010: £0.83m)

• Operating loss £1.0m (2010: loss £0.9m)

• Net cash position of £0.6m, with borrowing facilities of up to £0.35m

• The Group's current order book stands at circa £2.4m

PhotonStar has made excellent progress during 2011, achieving several major milestones including fully rationalising the business following the reverse takeover of Enfis Group plc in December 2010 and completing the acquisition of Camtronics Vale in May 2011.

The LED Fixtures business has scaled up well during the last 12 months and continues to show strong growth. As a result, the Group has completed its planned expansion of LED fixture production capacity, moving into a newly leased 12,000 square foot facility adjacent to Camtronics Vale's premises in Tredegar, Wales. This facility has now moved into operation and full production will be transferred from Romsey during January 2012. This will allow the installation of a new production line in Romsey for the full manufacture of the Group's ChromaWhite light engine product during Q1. ChromaWhite is the Group's next generation light engine product, which allows microprocessor controlled colour tuning and superior light quality, at an extremely competitive price-point.

The remainder of the Photonstar Group has been fully rationalised, with the planned closure of the ALC traditional legacy lighting business, and refocusing of the former Enfis specialty LED products on specific niche business applications.

The Group has made further progress with its patent portfolio and has been granted two additional patents since the last update, making a total of 6 granted and allowed patents. In addition, further new intellectual property has been filed in the last quarter.

The Board expects to release its 2011 results in March 2012.

James Mckenzie,CEO of PhotonStar LED Group PLC, commented

"2011 has been a year of transition, laying the foundations for the future of the business, during which we have integrated and rationalised the two businesses of the former Enfis and PhotonStar and added additional manufacturing capacity through the acquisition of Camtronics Vale. By so doing, we have created a leading-edge designer and manufacturer of smart LED lighting products and solutions.

Our order book and pipeline continues to grow and we see continued growth in the LED lighting market. We see significant growth opportunities ahead for the Group, particularly as we focus on bringing our ChromaWhite modules to market.

"PhotonStar has recently been shortlisted in two categories for the 10th Anniversary Lighting Design awards - alongside products from lighting giants Havells Sylvania, Osram and Philips - highlighting the esteem in which our products are held.

"We anticipate a very exciting year ahead in 2012."

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Note to editors

About PhotonStar LED Group PLC

PhotonStar LED Group PLC ("PhotonStar" or the "Group") is a British designer and manufacturer of smart LED lighting solutions. The Group's proprietary technology seamlessly integrates LEDs, sensors and controls to provide intelligent lighting for commercial and architectural applications which benefit from greater CO2 reduction, lower cost of ownership & improved functionality compared to other available light sources. PhotonStar's lighting products have won numerous awards for performance, innovation and reliability, and are unique in the industry for the use of recycled, and recyclable materials, which means they have 90% less embodied CO2 than equivalent products providing the same levels of illumination.

PhotonStar comprises two divisions: LED Lighting Fixtures which works with lighting designers, architects, house builders, facilities management companies and sustainability consultants to provide intelligent, high-end LED lighting solutions for the commercial and architectural market, and LED Light Engines which provides LED lighting solutions for specialist applications such as film & television production lighting, UV curing and medical applications.

PhotonStar is based in Romsey, Hampshire with manufacturing in Wales. The Group was admitted to AIM in December 2010.