New production deal combines cash injection with scalability

Cambridge, October 2006 – AIM listed Screen Technology, a specialist developer of large format displays has announced a multi € million manufacturing partnership with world-class German moulding and assembly company Wilden AG.

Under the terms of the deal, Wilden AG will provide the necessary manufacturing infrastructure, moulding machinery and premises that will allow Screen Technology to ramp up production of the moulded optical-fibre tiles used to make its displays in order to meet world-wide demand for its ITrans technology. Wilden AG will also provide the finance for the necessary injection moulding tools and also for the acquisition of Screen Technology’s first high-speed ITrans tile manufacturing machine when it completes its factory acceptance testing expected to be this month.

Wilden is a major producer of specialist high-quality high-technology injection mouldings for the automotive, electronic and telecommunications and medical industries. Its customers include Daimler Chrysler, Astra Zeneca, Siemens, Sennheiser and Roche. Wilden has a broad international presence with facilities located in North America, Western and Eastern Europe, and the Far East.

ITrans is the world’s only technology to provide high-resolution moving video-quality images and clear information on larger display screens which can be viewed even in bright sunshine, making them ideal for public information and advertising displays in areas such as shopping malls and airports.

Screen Technology’s CEO Tom Jarman said: “I am delighted that Wilden has joined us in this groundbreaking partnership. We have been working with Wilden for some time now and they are the perfect partner, with the infrastructure to produce the highest quality product, the expertise of a substantial German technical team and the experience of supplying to the most demanding of customers.

“They have a world-wide manufacturing presence, including low cost locations such as the Far East and Eastern Europe, that will enable us to achieve our global potential. This partnership is key to our growth plans and has been signed up 12 months ahead of schedule. This puts us in a position where we can accelerate sales growth, significantly scale-up tile production and concentrate on what the company does best – developing our Intellectual Property (IP) and marketing our ITrans display technology.

“Wilden’s cash investment in this partnership agreement also frees up cash reserves that would otherwise be tied up in machinery and will see Screen Technology’s cash position improved by over £500,000 by the beginning of 2007. More importantly it will enable us to accelerate our future growth plans and get the second and third high speed machines on stream more quickly.”

Wilden AG has agreed to set up a manufacturing facility where it will install three high-specification moulding machines that will work alongside high-speed ITrans tile manufacturing equipment.

This first production “cell”, due to be on stream early in the new year will be capable of producing up to 500 high quality tiles a month for Screen Technology’s recently launched modular displays, which allow customers to specify seamless displays of almost any size that can easily be delivered and assembled on-site. A further cell is expected in the middle of 2007 utilising the second high-speed machine, which is already being constructed.

Screen Technology is already producing tiles and displays using two lower-speed lines and the first high-speed machine will be producing tiles this year.

Once the tiles are made by Wilden AG, they will be supplied to the UK, for assembly into displays, or delivered to one of Screen Technology’s OEM partners. Screen Technology has currently produced a number of demonstration screens with two such partners, one located in Italy and one in Germany. These companies will be producing displays for sale from early 2007.

“Screen Technology is in the highly unusual position of having compelling and unique product for a multi £bn market where the biggest hurdle is ability to supply in volume. This partnership allows us to break through that barrier. By adopting Wilden AG as our manufacturing partner, not only are we creating a scalable production line of high-quality tiles, we are also able to bid for substantial contracts, while the cash element of the deal will significantly boost our world-wide sales and marketing drive,” concluded Tom Jarman.

For further press information, please contact:

Steve Greenhalgh at the Screen Technology Press Office.
Tel: 01223 350855

Email: steve@realpublicrelations.com

To contact Tom Jarman CEO of Screen Technology PLC Tel: 01223 559 600