Notification of Legal Proceedings (4302Y)

TIDMDSN

RNS Number : 4302Y

Densitron Technologies PLC

01 March 2012

Densitron Technologies plc

("Densitron" or the "Company")

Notification of Legal Proceedings

The Board of Densitron announces that the landlord of premises located at Wallsend, Tyne and Wear, near Newcastle has instigated legal proceedings against the Company. The premises were occupied by the Company's former subsidiary, Densitron Ferrograph Limited. Densitron Ferrograph Limited was sold by the Company in 2006.

The action from the landlord involves seeking rectification of an existing lease to seek to make Densitron Technologies plc the tenant under the lease and involves a claim of approximately GBP300,000 in unpaid back rent. If the action were to succeed there would also be a liability for unpaid past business rates of approximately GBP70,000.

The lease of the premises previously occupied by Ferrograph Limited runs until 2023 and contains provisions for rent reviews in 2013 and 2018 and an outstanding rent review in 2008. The annual rent on the premises is currently GBP167,000 and the annual business rates on the premises are currently GBP60,000. The premises are at present unoccupied.

Densitron, after taking legal advice, intends to defend the claim vigorously but at this time the outcome cannot be forecast with any level of certainty. In addition to investigating further the underlying circumstances, Densitron will be seeking to agree the reletting of the premises by the landlord on a basis that is without prejudice to the existing claim to limit the possible overall liability.

Further information:

Densitron Technologies plc

Grahame Falconer / Tim Pearson

Tel: [phone]

Westhouse Securities Limited

Tom Price / Martin Davison

Tel: [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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