Acquisition update

Tristel PLC 06 June 2006 Tristel plc Acquisition of Vernagene Limited completed Tristel plc ('Tristel'), the healthcare business which uses its proprietary chlorine dioxide chemistry to create infection control products for hospitals, announces that it has completed the acquisition of Vernagene Limited ('Vernagene'), the chlorine dioxide specialist focusing on the water treatment and food processing industries, for £1m. It was announced on 23 May 2006 that Tristel had exchanged contracts for the acquisition of Vernagene, an acquisition that will be immediately earnings enhancing. Vernagene, which is based in Bolton, focuses on water treatment and purification and hygiene control within the food processing industry. It has been divested by Verna Group Holdings Limited. Vernagene employs six people and in the year ended 31 March 2006 achieved sales of £1,177,000 (2005: £1,145,000 and 2004: £906,000) and pre-tax profits of £301,000. As at 31 March 2006, Vernagene had net assets of £289,000. Tristel has purchased the share capital of the company for £1m in cash and may pay an additional sum of up to £100,000 on an earn-out basis. The acquisition will be funded using existing cash resources (i.e. surplus cash from flotation and operations) and a short term loan of £200,000 from one of its shareholders. The Company intends to refinance this loan with commercial bank term debt. Currently Tristel has no debt. The acquisition will extend Tristel's reach beyond the infection control market in hospitals, where it has focused its activities to date, enabling it to expand into new markets where chlorine dioxide is increasingly being used. Vernagene has approximately 200 customers in the government, municipal, industrial, healthcare and food sectors. Importantly, Vernagene provides water treatment solutions to approximately 40 UK hospitals, where its products are used for Legionella control, whilst Tristel supplies approximately 400 hospitals with its instrument and surface disinfection products. The Board believes there will be significant cross selling opportunities. The acquisition will also present an opportunity for Tristel to apply its sales and marketing skills to the Vernagene product offering as well as the opportunity to combine Tristel's patented technology and unique delivery systems with Vernagene's chlorine dioxide chemistry. ENDS Tristel plc Parkgreen Communications Ltd Paul Swinney, Chief Executive Paul McManus Paul Barnes, Finance Director (paul.mcmanus@binnspr.co.uk) Tel: 01638 721 500 Tel 020 7786 9600 http://www.tristel.com Mob: 07980 541 893 This information is provided by RNS The company news service from the London Stock Exchange

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