Trading Statement

RNS Number:0056H
Vycon Inc
05 November 2007


Vycon Inc
5 November 2007


                                 Trading Update


Vycon, Inc. ('Vycon' or 'the Company') the designer and manufacturer of
high-speed flywheel based energy storage systems, today announces a trading
update.

Delays in customers finalizing orders, which were reported in the interim
results on 31 August, have continued. Consequently, sales for the year ending 31
December 2007 are expected to be significantly below market expectations as
previously indicated. Sales of approximately $552,000 have been recorded
year-to-date through October 2007; however, the Company expects to record
additional sales in the remaining two months of the year. While the underlying
loss of the Company for 2007 will be greater than market expectations, the
Company expects the loss for the year to be similar to 2006.

Despite the delay in converting quotation activity into firm orders, the Company
continues to make significant progress in gaining varied levels of endorsement
for its major products:

Crane - Energy Efficiency & Recycling Applications

Vycon has entered into commercial discussions with a leading port operator who
extensively tested the Company's REGEN product in 2007. In addition, validation
testing initiated in the summer at another port site in the US has resulted in
the purchase of two REGEN units included in year-to-date sales reported above.
An alliance with Noell (Fantuzzi Group), announced in July 2007, is progressing
with Noell reporting bid activities for applications using Vycon's REGEN system
and an order for one system. The Company is also continuing to expand its
channel alliance efforts and has entered into technical discussions with one of
the world's largest crane manufacturers.

In October 2007, the REGEN system was approved by the California Air Resources
Board ("CARB") as a Level 1 system - which in effect validates the products'
value proposition as a fuel and emissions saver. The Board anticipates this will
further enhance sales efforts in California and worldwide as CARB is an
internationally recognized authority in emissions controls.

UPS- Power Quality Application

The Company has responded to the disruption in the UPS sales channel reported
earlier by appointing Frank DeLattre, with twenty years of power quality
experience, to lead the Company's UPS sales efforts. Efforts to expand the
Company's UPS sales channels remains a key focus and as a result of these
efforts, the Company has entered into an agreement with Chloride Group PLC for
the marketing and distribution of Vycon's VDC flywheel for use in Chloride UPS
systems. Chloride, listed on the London Stock Exchange with over $400 million in
sales, has a strong presence in Europe and the Middle East. Another large
potential channel partner has agreed to test VDC units at a US facility as part
of their evaluation for entering into an OEM agreement with the Company.

The VDC products continue to serve the customers' needs and recently the Company
was awarded with a repeat order from a client in the hospital sector.

Commenting on the trading update, Tony Aoun, President and Chief Executive
Officer, stated: "The nature of our business renders forecasts sensitive to the
timing of customer orders. Although it is disappointing that orders have failed
to materialize at the rate previously envisaged, I am confident that the current
level of quotation activity and channel expansion actions will enhance the
momentum we are building within our target markets. Further, we expect that the
rising oil prices will give port operators additional incentive to purchase our
products and that the fast rising cost of lead used in batteries will give data
center mangers yet another reason to consider alternative energy storage
devices."


Enquiries:

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

Smith & Williamson Corporate Finance Limited           [phone]
Nick Reeve
Martyn Fraser

Cardew Group                                           [phone]
Rupert Pittman
Shan Shan Willenbrock
Emma Consett







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

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