ETQ Energy Tech.

RNS Number:9150Q
Energy Technique PLC
06 September 2005


                      Energy Technique plc ("the Company")

                    Trading update and refinancing proposals

In its Interim Statement for the six months ended 30 September 2004 the Company
reported a loss before and after tax of #924,000. Since that date the Company
and its subsidiaries ("the Group") have continued to experience very difficult
trading conditions and working capital constraints.

The Board has taken steps to reduce the Group's operating costs and, although it
is expected that the benefit of these cost reductions will begin to flow through
in the coming months, these benefits did not impact on the second half of the
year. Accounts for the full year ended 31 March 2005 will be posted to
shareholders on or before 30 September 2005.

As a consequence, it is now essential to provide the necessary additional
working capital for the Group to continue to trade solvently and the Board has
agreed today with an investor group comprising London & Boston Investments plc
(of which Stephen Komlosy, a director of the Company is also a director) and
Triandra Limited who are existing shareholders of the Company to advance up to
#1.5 million by way of an issue of a like amount of Loan Notes ("Loan Notes").

The investor group has conditionally agreed to convert the loan notes into new
ordinary shares at a price of 1p per share, subject to i.) the approval of those
shareholders of the Company who are independent of the investor group (which is
deemed to be aConcert Party for the purposes of Rule 9 of the City Code on
Takeover and Mergers), and ii.) the granting by the Panel on Takeovers and
Mergers of a waiver of the requirement for the investor group to make a general
offer to shareholders, which would normally arise on conversion of the loan
notes, and iii) the Admission to trading on AIM of the new shares.

The Directors intend that the Company implements, as soon as practicable, an
equity issue to shareholders of 152,628,016 new ordinary shares at a price of 1p
per share (" the Issue Price") which would be available to shareholders on the
basis of one new share for every existing share held.

Money raised by that equity issue will be used to redeem the relevant number of
Loan Notes.

With the exception of Mr. Komlosy, who is involved in the transaction as a
related party, the directors consider, having consulted with ARM Corporate
Finance Ltd., the Company's nominated advisor, that the terms of the Loan Notes
and the financing proposals referred to above are fair and reasonable in so far
as the Company's shareholders are concerned.

A circular to shareholders convening an Extraordinary General Meeting to seek
shareholders approval in relation to the conversion of the Loan Notes and the
proposed equity issue will be sent to shareholders as soon as practicable.

                                                              6 September 2005


ENQUIRIES:
The Company:    Robert Unsworth, Acting Finance Director     020-8783-0033



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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