Trading Update and New Product Launch

SALEM, NH--(Marketwire - Jan 19, 2012) -

19 January 2012


                       ProPhotonix Limited

                  ("ProPhotonix" or "the Company")

    Pre-close trading update for the year ended 31 December 2011

                        New Product Launch


ProPhotonix Limited, (London Stock Exchange - AIM: PPIX and PPIR, OTC:
STKR.PK), a designer and manufacturer of LED light engines and laser
diode modules as well as a distributor of premium laser diodes, today
provides a pre-close update in respect of the year ended 31 December
2011.

The Company's revenues and loss before tax are in line with market
expectations for the full year in spite of mixed trading in the last
quarter of 2011, where the Company experienced a slowdown in orders and
shipments for certain of its product lines. In the first half of the
year the Company's LED division benefited from particularly strong
shipments to the German solar panel production equipment industry,
which dropped off significantly later in the year. Management is not
expecting a recovery in orders in this segment until H2 2012 due to the
global overcapacity in the solar panel market. Subject to finalisation
of the annual audit and any potential changes thereafter, revenue for
the financial year ended 31 December 2011 is expected to be
approximately $17 million and EBITDA is expected to be neutral. The
Company ended the year with a strong cash position of approximately
$4.1 million.

Outlook

The Board is focused on 2012 being a year of further diversification of
customers and product lines. The Company will continue to invest to
broaden its LED and laser module portfolio and to strengthen its sales
capabilities in order to broaden its customer base and grow its overall
business. The investments made during H2 2011 in the sales force, R&D,
engineering capacity and the development of new distribution channels
in Asia are expected to generate further momentum in the business
during 2012. In the last quarter of 2011, the Company doubled the size
of its US sales force, including a new country sales manager, and it is
in the process of strengthening its European sales force. In addition,
the R&D team was nearly doubled in 2011 to capitalize on several
substantial opportunities and further customer led product-line
development. The Company has made significant progress on a number of
important new revenue opportunities in the areas of medical,
automotive, and semiconductor inspection. Several of these
opportunities bode well for a significant increase in revenue in the
second half of the current year and into 2013.

It is expected that the audited results for the year ended 31 December
2011 will be reported on March 1, 2012.


New Product Launch:


The Company is pleased to announce that it has extended its machine
vision solutions with InVisoTM Micro, an extension to its highly
successful InViso laser diode module product line.

Machine Vision systems enable the inspection of products throughout the
manufacturing process and allow manufacturers to ensure that their
products conform to the exact specifications to which they were
initially designed.

InViso combines a flat form factor with a "no tools required" external
focus to produce an extremely uniform laser line. Its unique form
factor provides instant alignment and expedites integration while
ensuring a high-degree of repeatability. InViso Micro incorporates all
the existing InViso features while delivering fine line widths down to
16 (micro)mat 120 mm working distance. Both InViso models are available
in a range of wavelengths and power levels up to 100mW. InViso and InViso
Micro were designed and developed at the Company's R&D center in Cork,
Ireland.

Commenting on the InViso Micro launch, Mark W. Blodgett, Chairman and
CEO of ProPhotonix, said: "InViso Micro was a direct result of our
close working relationship with our customers. They are facing new and
stringent requirements for their applications and we are giving them
energy efficient technology solutions they need to gain better
performance, easier integration, and more flexibility. We are committed to
maintaining and broadening our reputation as innovative solution providers
in the machine vision industry. InViso Micro is a step in that direction
and will allow us to expand sales to the automated inspection market."


The Company will showcase InViso Micro in Booth 1201 at Photonics West
in San Francisco, January 24 - January 26 2012.



Enquiries:


ProPhotonix Limited             Tel: +44 (0)12 7971 7170

Mark W. Blodgett, CEO            ir@prophotonix.com 


Nominated Adviser and Broker    Tel: +44 (0)113 241 0130

Brewin Dolphin Limited

Andrew Craig/Ben Wright


Cubitt Consulting               Tel: +44 (0) 20 7367 5100

Chris Lane / Alice Coubrough

RD:IR                           Tel: +44 (0) 20 7492 0500

Isabel Richardson



About ProPhotonix

ProPhotonix Limited, headquartered in Salem, New Hampshire, is an
independent designer and manufacturer of diode-based laser modules and
LED systems for industry leading OEMs and medical equipment companies.
In addition, the Company distributes premium diodes for Opnext, QSI,
Ondax, Sanyo and Sony. The Company serves a wide range of markets
including the machine vision, industrial inspection, defense, sensors,
and medical markets. ProPhotonix has offices and subsidiaries in the
U.S., Ireland, and the United Kingdom. For more information about
ProPhotonix and its innovative products, visit the Company's web site
at  www.prophotonix.com .


Safe Harbor Statement

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. All statements other than
statements of historical fact, including without limitation, those with
respect to ProPhotonix's goals, plans and strategies set forth herein
are forward-looking statements. The following important factors and
uncertainties, among others, could cause actual results to differ
materially from those described in these forward-looking statements:
uncertainty that cash balances may not be sufficient to allow
ProPhotonix to meet all of its business goals; uncertainty that
ProPhotonix's new products will gain market acceptance; the risk that
delays and unanticipated expenses in developing new products could
delay the commercial release of those products and affect revenue
estimates; the risk that one of our competitors could develop and bring
to market a technology that is superior to those products that we are
currently developing; and ProPhotonix's ability to capitalize on its
significant research and development efforts by successfully marketing
those products that the Company develops. Forward-looking statements
represent management's current expectations and are inherently
uncertain. All Company, brand, and product names are trademarks or
registered trademarks of their respective holders. ProPhotonix
undertakes no duty to update any of these forward-looking statements.


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

END