MST Mid-States

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RNS Number : 1509P

Mid-States PLC

29 September 2011

MID-STATES PLC (the "Company")

Announces launch of new Product Portfolio, a new Chinese Distributor and equity fund raising

Mid-States PLC, a leading environmental technology group, is pleased to announce the launch of its new product portfolio. Developed from a concept identified by a British Government research facility, the AD provides a unique solution for disinfecting the air and surfaces of harmful bacteria and viruses. Currently the Company is focused on selling the AD to create clean air in enclosed spaces for hospitals, care homes, offices, dental surgeries and ambulances.

Until now, the Company has had a single version of its 'AD' product for all markets. In response to customer requirements, the portfolio will now include two new models of the AD, based on the same technology but one, the "AD 2.0", specifically designed for commercial and professional use and the other, "Klean", designed for small commercial and domestic use.

The new products have already attracted significant attention from our customers as they achieve the same effective results but are now:

-- Substantially cheaper and smaller than the existing AD;

-- Wholly redesigned with both significant practical and aesthetic improvements; and

-- Offering the choice of two consumable cartridges with the introduction of H(2)O(2) to produce the key hydroxyl radicals.

The new range will be available from October 2011 and manufacturing will henceforward be outsourced as part of the process to improve the functionality whilst reducing the price of our products. The Company believes that the new products will expand the potential marketplace and accelerate the Company's ability to sell into new markets.

To reflect these developments, the Company's new products will be sold under a new and more internationally recognisable brand entitled "Aerte". Further details of Aerte and the new products can be found on our new website: http://www.aerte.com.

The Company is also pleased to announce that it has agreed the principal terms of a proposed distribution agreement with a substantial Chinese Company operating in the high technology sector and a member of a Group with annual sales of over GBP900 million. This includes minimum annual sales targets for the new product range with volumes of 75,000 AD's in the first year, beginning from 1 February 2012.

The development of the miniaturised AD for use in the domestic home is progressing.

In order to capitalise on the anticipated surge in demand for its products, the Company is currently exploring the possibility of an equity fund raising.

Existing shareholders representing 44% of the issued share capital have already expressed their support in principle for such an exercise.

The Company has retained Panmure Gordon, its Nominated Adviser and broker, to assess demand for additional shares, in particular from existing shareholders of the Company.

Commenting on the announcement, Chief Executive, Javier Segura, said "We are very excited as the new range reflects all our accumulated knowledge of this specialised marketplace. The changes deliver significant differences in cost and design. As a result, we are now discussing the potential of the new range at a wholly different level with substantially larger partners."

For further information:

Mid-States PLC Tel: +44 (0) 20 7603 1515

Andrew Tonks, Finance Director

Panmure Gordon (UK) Limited Tel: +44 (0) 20 7459 3600

Andrew Godber / Adam Pollock

Cardew Group Tel: +44 (0) 20 7930 0777

Tim Robertson / Georgina Hall

This information is provided by RNS

The company news service from the London Stock Exchange

END

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