Update following fire at Swansea facility

PURE WAFER PLC

(AIM: PUR)

Update following fire at Swansea facility

16 January 2015

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, provides the following update relating to the recent fire damage suffered at its Wafer Reclaim facility in Swansea.

Forensic investigations into the fire, which broke out at 9am on Sunday 21 December 2014, indicate that the fire was caused by an electric fault within the external environmental services area of the facility. These investigations are still ongoing in conjunction with our insurers and structural engineers as well as the Environment Agency.

Metallurgic testing has now concluded that elements of the building, including parts of the structural steel framework and external roofing and cladding, have been compromised by the fire and will need to be replaced. Although the fire was contained to the service and plant areas and prevented from entering the production areas by the installed fire prevention systems and fire wall,further extensive testing throughout the building has indicated that the manufacturing areas including the clean rooms and equipment therein have been contaminated by smoke and fumes from the fire.

In light of these recent findings, it has been concluded that the building will require extensive repairs, including the removal of all affected structural elements, and that the clean rooms will need to be removed and replaced together with all associated mechanical, electrical and process services. The process equipment will also need to be extensively refurbished or replaced to ensure that high levels of quality and customer satisfaction are maintained when production resumes.

The facility is fully and comprehensively insured, which includes extensive 3 year business interruption cover. We are currently working closely with our insurers and their advisors to ensure that production is resumed as soon as possible. It is anticipated that it will take up to 12 months for full scale production to recommence.

We continue to communicate and work closely with our customers to minimise any disruption resulting from this incident. Our contingency plan also includes switching, where possible, some current production to our other facility in Prescott, Arizona.

Further updates will be issued as more information becomes available.