Memscap

Earnings Release • Jul 26, 2013

Q2 2013 EARNINGS: REVENUE GROWTH OF 29%

EUR.4.0 million consolidated revenue

Grenoble, France and Durham, North Carolina, July 26, 2013 - MEMSCAP (NYSE Euronext: MEMS), the leading provider of innovative solutions based on MEMS (micro-electro-mechanical systems) technology, today announced its earnings for the second quarter ending June 30, 2013.

Consolidated revenue for the second quarter 2013 was 4.0 million euros (5.2 million US dollars) compared to 3.1 million euros (4.0 million US dollars) for the second quarter 2012 and 3.7 million euros (4.8 million US dollars) for the first quarter 2013. The revenue of the second quarter 2013 is therefore increasing by 29% compared to Q2 2012 and 9% compared to Q1 2013.

Consolidated revenue distribution by market segment, over the second quarter 2013, is as follows:

Market Segments	Revenue (M€)	%
Aerospace	1.4	34%
Medical / Biomedical	1.0	25%
Mass Market	0.9	23%
Optical Communications / Adaptive Optics	0.4	11%
Other Applications	0.3	7%
Total	4.0	100%

(Any apparent discrepancies in totals are due to rounding.)

The sales increase was due to the growth of the aerospace and medical / biomedical market segments as well as the mass market activity which represented 23% of the Q2 2013 consolidated revenue.

The gross margin rate remained stable at 20% of the consolidated revenue. Operating expenses amounted to 1.1 million euros. This expense level was similar to the former quarter and decreasing by 4% compared to Q2 2012.

The impact of the sales growth on the gross margin together with the control of the operating expenses led to a lower operating loss which amounted to (0.3) million euros for Q2 2013 compared to (0.4) million euros for Q1 2013 and (0.5) million euros for Q2 2012.

The Q2 2013 net loss amounted to (0.3) million euros compared to (0.4) million euros for Q1 2013 and a net profit of 0.7 million euros in Q2 2012 due to the sale of the Group's stake in the company INTUISKIN which generated a 1.3 million euros financial gain.

* * *

MEMSCAP's consolidated earnings for the second quarter of 2013 are given by the following table:

In million euros – Non audited	Q1 13	Q2 13	Q2 12
Revenue	3.7	4.0	3.1
- Standard Products - Custom Products	2.0 1.7	2.2 1.8	2.0 1.1
Cost of revenue	(2.9)	(3.2)	(2.4)
Gross margin	0.7	0.8	0.6
% of revenue	20%	20%	21%
Operating expenses	(1.1)	(1.1)	(1.2)
Operating profit / (loss)	(0.4)	(0.3)	(0.5)
Financial profit / (loss)	--	--	1.2
Income tax expense	--	--	--
Net profit / (loss)	(0.4)	(0.3)	0.7

(Any apparent discrepancies in totals are due to rounding.)

Analysis and perspectives

The success of the capital increase, finalized on July 22, 2013 for 1.2 million euros, will allow MEMSCAP to strengthen the development of its activities and specifically those dedicated to the mass market segment.

Half-year 2013 revenue and earnings: August 30, 2013

About MEMSCAP

MEMSCAP is the leading provider of innovative micro-electro-mechanical systems (MEMS)-based solutions. MEMSCAP standard and custom products and solutions include components, component designs (IP), manufacturing and related services. MEMSCAP customers include Fortune 500 businesses, major research institutes and universities. The company's shares are traded on the Eurolist of NYSE Euronext Paris S.A (ISIN: FR0010298620-MEMS) and belong to the CAC small, CAC Mid & Small, CAC All-Tradable and CAC All-Share indexes. More information on the company's products and services can be obtained at www.memscap.com.

For more information, please contact:

Yann Cousinet CFO Ph: +33 (0) 4 76 92 85 00 Email: yann.cousinet@memscap.com