SPI Lasers plc

SPI Lasers plc

November 30, 2006 02:04 ET

SPI Lasers plc: Contract Wins and Technical Update

LONDON, UNITED KINGDOM--(CCNMatthews - Nov. 30, 2006) - SPI Lasers plc (AIM:SPIL) a leader in the design, development, engineering and manufacture of optical-fibre-based lasers, today announces progress on a number of contract wins and also delivers a technical update.

The Company is pleased to announce that it has received fixed orders for over US$2 million for the shipment of previously announced framework contract wins in the medical arena and for low power lasers. In addition, SPI has received an extension for an external development contract of US$600,000 and is in advanced discussions regarding further contracts.

After the resolution of previously reported technical issues relating to the power scaling of its optical fibre, SPI is pleased to be able to update the market that further progress has been made in completing product development and shipments for products for the MARKING sector. The Company also reports similar progress in its higher power MACRO products with low volume shipments commenced.

David Parker, Chief Executive of SPI Lasers, commented: "I am pleased with our renewed growth and progress towards the expected revenue levels. Based on this development and our ability to carry out evaluations of these new products, the Company is confident that it will see a further strengthening of our order book in the new year."

The Company also announces today that it has agreed heads of terms for a convertible loan of Pounds Sterling 1.75 million with ETV Capital S.A. ("ETV") as the lender. The agreement also involves the adjustment of the terms of an existing loan with the same lender. This ETV loan will aid the Company with working capital requirements for early 2007. The loan is repayable over thirty-three equal monthly instalments commencing in 2007.

A spokesman for ETV commented that while comfortable with the existing debt facilities this new convertible loan facility aims to give SPI the financial flexibility to execute on their current business plan with confidence and take advantage of the opportunities SPI sees in its market.

Commenting on the ETV loan, David Parker added: "As SPI already had an existing relationship with ETV, having entered into a loan facility agreement in June 2005 ahead of our AiM Admission, it made perfect sense for us to partner again with an organisation who clearly understands our business and its potential. The loan will provide us with cover for working capital in a busy period when we are making good progress towards our forecasted full year figures for 2006 and building the order book for next year."

For further information:
SPI Lasers plc
David Parker, President and Chief Executive Tel: +44 (0) 1489 779 696
Steve Berg, Chief Financial Officer
steve.berg@spilasers.com www.spilasers.com

Media enquiries:
Henry Harrison-Topham / Franziska Bohnke Tel: +44 (0) 20 7398 7700
henry.ht@abchurch-group.com www.abchurch-group.com

Notes to Editors:

The Group is a leading designer and manufacturer of optical fibre-based lasers that are currently used in a wide range of industries. The current product family is used to mark, weld, and cut materials used in the manufacture of a range of products.

The platform technology being developed to raise laser power levels for use in the macro manufacturing sectors is expected further to widen the markets served by the Group to include aerospace, automotive and white goods manufacture.

Among new markets in prospect, as higher-power lasers are deployed, is defence, and the Group is currently involved in this sector through contracted development work with a number of companies and government agencies.

The Group has a strong network of international distributors. In Europe the international distributor is BFI Optilas, one of the region's largest distributors of specialist products in the electronics and photonics markets. Outside Europe, the Group's products are distributed on an exclusive basis in China, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.

Founded in 2000 on technology developed by the University of Southampton's Optoelectronics Research Centre, the business is based in Southampton.


About ETV Capital S.A.

ETV Capital S.A. is a specialty finance company that makes supportive investments in growing technology companies across Europe.


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