VYCO Vycon

RNS Number:5729A
Vycon Inc
20 July 2007


                                      



                                 Trading Update


Vycon, Inc. ("Vycon" or "the Company") the designer and manufacturer of
high-speed flywheel based energy storage systems, announces a trading update
following its half year end on 30 June 2007.


In the last six months, Vycon has continued to make significant inroads with
strategic customers in both its target markets (Crane and UPS), which have
served to underline the market potential of Vycon's flywheel technology. Sales
have not materialized at the rate previously anticipated, the effect of which
will be substantially lower than anticipated sales in 2007 than market
expectations. Trading has been impacted by two primary factors; the delay of
orders from the Company's crane customers and a merger between two large UPS
competitors.


Crane

The Company believes that validation testing by some of its key customers will
result in the delay of orders. Interest in the Company's REGEN units has not
only been substantial but has led to extensive validation testing at customer
port operation sites located in the US, China and Korea. Vycon's REGEN units are
being tested for retrofitting to existing crane fleets with standard sized
generators, but also for use with smaller generator sets which are expected to
produce even greater fuel savings and emissions reductions. While these tests
are taking longer than anticipated, positive results are expected to help
establish Vycon's REGEN unit in the crane market and to deliver further sales
opportunities in the future.


UPS

The unexpected merger of two large, battery-based UPS competitors has resulted
in the disruption of the Company's efforts to sign up manufacturers'
representatives and distributors in the UPS sales channel. The disruption will
result in the delay of orders for the Company's UPS products and substantially
lower than anticipated sales in 2007. Earlier in 2007, Vycon announced the
formation of a strategic alliance with one of the merged competitors.
Integration of the merged companies has resulted in elimination of certain
distribution partners which has resulted in Vycon refocusing its UPS sales
efforts on continuing to train remaining, and signing on, new manufacturers'
representatives and distributors.


As a result of these factors the Board has taken a more cautious view of
achievable revenues for the full year.


In spite of these delays, the Board is confident in its ability to negotiate
attractive sales and distribution agreements. Vycon is currently engaged in a
number of other initiatives which are expected to have a positive impact on the
company. These include a marketing agreement with a leading crane manufacturer
to expand market reach, a development project for larger products, which is
running to schedule and a recent move to a new facility with increased
manufacturing capacity.


The Directors remain positive in terms of market opportunities and believe that
there is significant future potential and value in the Company.


The lower sales in 2007 will result in lower working capital requirements for
the year and the Company's cash position at year end is expected to be
approximately in line with earlier projections.


The company will report its interim results on 31 August 2007.



For further information, please contact:

Vycon Inc                           Tony Aoun              001 714 386 3810
                                    Dennis Whittler        001 714 386 3813

Smith & Williamson Corporate        Nick Reeve             +44 (0) 117 933 3344
Finance Limited                     Martyn Fraser

Cardew Group                        Rupert Pittman         +44 (0) 20 7930 0777
                                    Shan Shan Willenbrock
                                    Emma Consett


ABOUT VYCON, INC



OVERVIEW


  * Vycon, based in Yorba Linda, California, designs and manufactures
    high-speed flywheel based energy storage systems. Its existing products
    target the global uninterruptible power supply ("UPS") and dockyard crane
    markets where its clean technology can significantly reduce emissions of
    greenhouse gases and other pollutants


  * The Company is also developing a range of higher capacity products,
    based on its existing technology. These larger products will enable Vycon
    to access new markets such as:

     -          Rail
     -          Large UPS systems
     -          Larger shipyard cranes known as "Ship to Shore"


  * Vycon employs a team of individuals with many years of experience in the
    development of motor generators, magnetic bearings and power quality
    equipment. The Directors believe the Company is now well positioned to meet
    increasing demand for clean energy storage solutions within its chosen
    markets




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

END
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