InnoConcepts H1 2010 results impacted by the resolution of key legacy issues. First signs of recovery of sales of conventional tooling
· Sales increased by 25% in Q2 to EUR 4 million vs EUR 3.2 million in Q1 2010
· Sales increased by 8% to EUR 7.2 million in H1 2010 vs EUR 7.0 million in H1 2009.
· Normalised EBITDA EUR 2.9 million negative in H1 2010 vs EUR 3.7 million negative in H1 2009
· Exceptional costs and impairments of EUR 38.6 million and EUR 16.2 million guarantee expense driven principally by the Cheng Meng and Proventec legacy issues
· Appointment of new Financial Director
· InnoConcepts will propose Mr. Onno van Klinken as third Supervisory Board member to shareholders at the EGM to be held in October

Comment from the CEO
As has been announced in the first half of this year the bankruptcy of our Chinese partner Cheng Meng and the removal of the Proventec Loan Note guarantee of GBP 15 million dominate our H1 results. With these two major legacy issues now behind us we are fully focussed on the development of the technology and its commercialisation. Clearly the improvement in sales of optical and conventional tooling, especially in HTP in Eindhoven is encouraging as is the reduction in operating costs excluding one-offs and exceptional costs. I am pleased to say that we are on track to achieve our stated objective of EUR 1 million of cost savings in full year 2010.

We are, however, disappointed that the commissioning of the injection moulding technology (IM Technology) mould that was shipped to the US at the end of May has been delayed by problems with the ancillary equipment and processes unrelated to the mould and that this has triggered a disagreement with our US license partner.

I am delighted that Anno Kamphuis has joined us as Financial Director replacing Jeroen de Rijk. I am also delighted that Onno van Klinken has accepted to be proposed to the shareholders at the upcoming EGM in October for a position as a Supervisory Board member. Onno brings with him a wealth of experience in legal and corporate governance affairs underlining our commitment to good Corporate Governance. We wish all three much success with their new assignments.