Interim Results

CAP-XX Limited
26 March 2007


26 March 2007


                                 CAP-XX Limited
           Interim results for the half-year ended December 31st 2006


   •    Sales for period at A$2.4m were 182% higher than the corresponding
        period last year and 37% higher than previous 6 months

   •    Loss of $4.7m, 15% lower than the corresponding period last year. 
        If the extra costs of compliance ($0.6m) and employee share based 
        payments ($0.2m) not incurred in the previous period are excluded, this 
        loss is 29% lower than the previous period

   •    Cash balance at end of period was $15.4m

   •    Substantial sales and engineering progress has been made for the
        adoption of supercapacitor enabled flash and power management systems 
        with 3 of the 5 leading mobile phone handset makers

   •    The company is well advanced towards establishing partnership and
        licensing agreements for the scale-up of production to meet anticipated
        demand from mobile handset makers

   •    Two new patents granted and 34 significant new design wins secured in 
        the half year

   •    We remain confident of further progress throughout the remainder of the
        year




Anthony Kongats, CEO of CAP-XX said

'I am delighted to be able to report that our business development activities
are proceeding in line with our expectations. We continue to make excellent
progress with the mobile phone handset makers and our advanced negotiations with
manufacturing partners will enable us to scale production of supercapacitors to
meet the anticipated volume demands of these mobile phone handset makers.'


For further information contact:


CAP-XX
Anthony Kongats, Chief Executive Officer                    [phone]
                                                            +61 (0)  2 9428 0139

Gavin Anderson & Company (Financial PR)
Robert Speed / Deborah Walter                               [phone]

Collins Stewart (Nomad)
Tim Mickley                                                 [phone]


More information is available at www.cap-xx.com



Managing Director's Review

Business overview

Sales for period at $2.4m (H1 2006 $0.8m) were 182% higher than the 
corresponding period last year and 37% higher than the second half. The loss of 
$4.7m (H1 2006 $5.5m) was 15% lower than the corresponding period and in line 
with the second half and in line with budget.

This result was achieved after absorbing a number of additional expenses not
incurred in the previous period, including $0.2m for the non cash expense of
share based payments to employees and $0.6m in extra costs associated with a
public company and compliance. During this period the company also increased
expenditure on manufacturing services, R&D and sales & marketing by $1.1m in
line with its stated strategy.

The balance sheet remains strong and the company ended the period with a cash
balance of $15.4m (June 30th 2006 $20.1m).

The Company has achieved material progress on a number of development projects
with leading mobile phone handset providers during the period of the review.
CAP-XX is currently engaged with 3 of the top 5 mobile phone handset
manufacturers on projects for the provision of high quality flash for mobile
phone handsets with cameras in the 3 to 5 M pixel range. In addition, there has
been an acceleration of development work by these mobile handset makers on the
integration of supercapacitors into power management systems to support a
broader range of power hungry applications, notably high quality audio.

Significant progress has also been made towards establishing partnering and
licensing agreements with major international component manufacturers. These 
manufacturing and licensing agreements will enable us to scale up production 
in order to meet the volume requirements of handset makers. Our potential 
partners have extensive links with the leading handset makers for the supply 
of components in high volumes.

The advancement in development of supercapacitor based flash and power
management systems has been facilitated by the development of integrated
circuits (ICs) from a number of leading micro processor companies with links to
the mobile handset market. The Company is also working closely with the leading
companies supplying high brightness LEDs for the promotion of LED flash systems.
A number of these companies are actively promoting CAP-XX to the mobile phone
makers.

In addition to the development of opportunities in our core market of mobile
phone handsets, the company continues to see an increasingly widespread interest
for supercapacitors for a broad range of applications comprising wireless
handheld devices, PC modems, automatic meter readers, location tracking systems,
medical devices and electronic access control products, which are being
converted into sales.

In the half year we secured 34 significant new design wins across these types of
applications. As an example of the opportunities being addressed by CAP-XX,
recent wins include mobile cardiovascular monitoring, emergency notification
systems for lone workers, offender tracking systems, disposable insulin pumps
and VOIP/GSM modem. These are expected to support CAP-XX's ongoing progress
towards profitable operations and are separate to the major opportunities with
the mobile handset makers.

The company made significant progress in its medium and long term R&D efforts.
Two new patents were granted in this period.


Notes to Editors:

CAP-XX is a world leader in the design and manufacture of thin form
supercapacitors and energy management systems, predominantly for portable
electronic devices.

The unique feature of CAP-XX's supercapacitors is their ability to store high
volumes of energy and output high power levels within a thin form design. These
attributes will be critical for the next generation of high volume, power-hungry
portable electronic devices, including mobile phones.

Portable devices are one of the fastest growing segments of the electronics
market and provide the greatest opportunities for CAP-XX's products. CAP-XX's
products are already an established enabling technology for the current
generation of wireless devices, such as PDAs and PCMCIA cards.



CAP-XX Limited
Income statement
For the half-year ended 31 December 2006
                                                           Consolidated
                                                  Half-year           Half-year 
                                                       2006                2005
Currency: Australian Dollars            Notes       $ ' 000             $ ' 000

Revenue from sale of goods                            2,384                 844
Cost of sale of goods                                (3,098)             (3,337)
                                                     ---------------------------
Gross margin (loss) on sale of goods                   (714)             (2,493)

Other income                                            559                 309

General and administrative expenses                  (2,245)             (1,030)
Selling and marketing expenses                         (658)               (444)
Research and development expenses                    (1,330)               (929)
Finance costs                                             -                (455)
Foreign exchange losses                                (150)               (313)
Other expenses                                         (168)               (173)
                                                     ---------------------------
(Loss) before income tax                             (4,706)             (5,528)
                                                     ---------------------------

Income tax benefit                                        -                   -
                                                     ---------------------------
Net (loss) for the half year                         (4,706)             (5,528)
                                                     ---------------------------
(Loss) attributable to members of                                                                    
CAP-XX Limited                                       (4,706)             (5,528)
                                                     ===========================

Earnings per share for (loss)                         Cents               Cents
attributable to the ordinary equity
holders of the company
Basic earnings per share                               (9.7)              (18.3)
Diluted earnings per share                             (9.7)              (18.3)




CAP-XX Limited
Balance sheet
As at 31 December 2006                                              
                                                                  Consolidated
                                                                                         Pro-forma*
                                         31 December 2006         30 June 2006     31 December 2005

Currency: Australian Dollars    Notes             $ ' 000              $ ' 000              $ ' 000

ASSETS
Current assets
Cash and cash equivalents                          15,385               20,107                  253
Receivables                                           993                  850                4,959
Inventories                                           281                  351                  361
Other                                                 125                  126                  118
                                                   -------------------------------------------------
Total current assets                               16,784               21,434                5,691
                                                   -------------------------------------------------

Non-current assets
Property, plant and equipment                       2,297                1,678                3,957
Other                                                 156                  153                  155
Total non-current assets                            2,453                1,831                4,112
                                                   -------------------------------------------------
Total assets                                       19,237               23,265                9,803
                                                   -------------------------------------------------

LIABILITIES
Current liabilities
Payables                                            1,245                1,070                2,580
Borrowings                                              -                    -               15,117
Provisions                                            663                  449                  529
                                                   -------------------------------------------------
Total current liabilities                           1,908                1,519               18,226
                                                   -------------------------------------------------

Non-current liabilities
Provisions                                            105                  113                   23
                                                   -------------------------------------------------
Total non-current liabilities                         105                  113                   23
                                                   -------------------------------------------------
Total liabilities                                   2,013                1,632               18,249
                                                   -------------------------------------------------
Net assets                                         17,224               21,633               (8,445)      
                                                   =================================================

EQUITY
Contributed equity                                 75,639               75,588               41,128
Reserves                                              660                  414                    2
Accumulated losses                                (59,075)             (54,369)             (49,575)
                                                  --------------------------------------------------
TOTAL EQUITY                                       17,224               21,633               (8,445)
                                                  ==================================================


*  The December 2005 balance sheet comparative figures are pro-forma and 
   unaudited, as they were not required to be presented, in the half-year 
   accounts prepared in accordance with Australian equivalents to International 
   Financial Reporting Standards and have been presented in order to comply 
   with the AIM Rules for companies.



CAP-XX Limited
Statements of changes in equity
For the half-year ended 31 December 2006
                                                               Consolidated
                                                    Half-year 2006      Half-year 2005

Currency: Australian Dollars              Notes            $ ' 000             $ ' 000

Total equity at the beginning of the 
half year                                                   21,633              (2,920)
                                                            ---------------------------
Exchange differences on translation of                          
foreign operations                                              40                   2
                                                            ---------------------------
Net (loss) recognised directly in equity                        40                   2
(Loss) for the half year                                    (4,706)             (5,528)
                                                            ---------------------------
Total recognised income and expenses for
the half year                                               (4,666)             (5,526)
                                                            ---------------------------

Transactions with equity holders in
their capacity as equity holders:
Employee share options                                         206                   -
Exercise of options                                             51                   -
                                                            ---------------------------
                                                               257                   -
                                                            ---------------------------
Total equity at the end of the half-year                    17,224              (8,446)
                                                            ===========================




CAP-XX Limited
Cash flow statements
For the half-year ended 31 December 2006
                                                               Consolidated
                                                   Half-year 2006       Half-year 2005

Currency: Australian Dollars            Notes             $ ' 000              $ ' 000

Cash flows from operating activities
Receipts from customers (inclusive of           
goods and services tax)                                     2,411                  782
Payments to suppliers and employees             
(inclusive of goods and services tax)                      (6,527)              (2,980)
                                                           ----------------------------
                                                           (4,116)              (2,198)
Interest received                                             388                   34
                                                           ----------------------------
Net cash (outflow) inflow from                  
operating activities                                       (3,728)              (2,164)
                                                           ============================

Cash flows from investing activities
Payments for property, plant and                
equipment                                                  (1,045)                (538)
Proceeds from sale of property, plant          
and equipment                                                   -                   26
                                                           ----------------------------
Net cash (outflow) inflow from 
investing activities                                       (1,045)                (512)
                                                           ============================

Cash flows from financing activities
Proceeds from issue of shares                                  51                    -
Payments for issuance costs of shares                           -                  (42)
Loans from related parties                                      -                1,780
                                                           ----------------------------
Net cash inflow from financing                          
activities                                                     51                1,738
                                                           ============================

Net increase (decrease) in cash and             
cash equivalents                                           (4,722)                (938)
Cash and cash equivalents at the                
beginning of the half-year year                            20,107                1,191
                                                           ----------------------------
Cash and cash equivalents at the end 
of the half-year year                                      15,385                  253
                                                           ============================


This general purpose interim financial report for the interim half-year
reporting period ended 31 December 2006 has been prepared in accordance with
Australian equivalents to International Financial Reporting Standards (AIFRSs),
other authoritative pronouncements of the Australian Accounting Standards Board,
Urgent Issues Group Interpretations and the Corporations Act 2001. This general
purpose interim financial report for the interim half-year reporting period
ended 31 December 2006 has (with the exception of the pro-forma figures for 
30 June 2006 in the Balance Sheet) been audited.




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