Trading Update

PURE WAFER PLC

(AIM: PUR)

Trading Update

Pure Wafer plc ("Pure Wafer" or "the Company"), the provider of high quality silicon wafer reclaim services for many of the world's leading semiconductor manufacturers, is pleased to provide the following update on current trading.

The growth in the semiconductor market, as previously reported, continues, with investment in new 300mm chip manufacturing facilities announced by the leading foundries and other major chip manufacturers, some of which are due to come-on-line during 2011, giving further wafer reclaim opportunities.

Pure Wafer has also seen a benefit from the effect of the tsunami which hit Japan during February. Whilst damaging for Japan itself and our Japanese competitors, this has had a positive effect on volumes in our core wafer reclaim business.

With the increased volume sales from both the tsunami effect and the newly won business, we have been able to quickly scale up our operations to meet the additional demand.

Additionally, the Group is pleased to confirm that its solar panels business, which was established in March 2010 and is approved for accreditation under the Microgeneration Certification Scheme, continues to grow with an expanding order book in the domestic, commercial and public works sectors.

During August we have been notified that we have been awarded a contract for a local community housing scheme for roof-top solar PV systems which will commence in September with a potential total value of up to £1m Together with being shortlisted on two other major solar contracts in the public sector, this order will give Pure Wafer a solid foundation and track record in this developing market which we believe is set to become a very important and successful part of our business.

The increased volume business in wafer reclaim, together with the increased volumes due to the Japanese tsunami and the rapidly growing solar business has resulted in an increased working capital requirement. To assist in our working capital management we have agreed with our asset based debt providers a further 6 months moratorium, with capital repayments recommencing in January 2012 and being paid over a three and half year period concluding in June 2015. During the period of the extended moratorium all debt interest will be paid.

The Company further announces that it is expecting to release the Company's preliminary results for the period ended 30 June 2011, during the week commencing 31 October 2011.