Strategic Investments

Earnings Release • Aug 19, 2011

Summary

-- As expected, Danionics reported a loss for the first half year of DKK 1.5
million before recognition of a DKK 0.3 million value adjustment in
Danionics Asia.
-- The company reiterates its full-year forecast of a loss of DKK 3 million
before recognition of the share of the profit or loss or value adjustment
in Danionics Asia.
-- Danionics incurred costs of DKK 0.3 million on behalf of Danionics Asia
during the first half year.

H1 2011 financial performance

As expected, Danionics reported a loss for the first half year of DKK 1.5
million before recognition of a DKK 0.3 million writedown of the loan capital
to Danionics Asia. The writedown equals the sales and marketing costs Danionics
incurred on behalf of Danionics Asia in the first half year. The H1 2011
financial performance was on a level with the result achieved in H1 2010.

The loan capital to Danionics Asia is recognised in the amount of DKK 0, which
is unchanged from 30 June 2010.

Cash amounted to DKK 5.0 million at 30 June 2011, against DKK 2.6 million at
the end of 2010. The company's share capital was increased by DKK 1.5 million
through a directed share issue, which produced gross proceeds of DKK 4.4
million to the company. The costs of the issue were DKK 0.2 million, which
means that Danionics A/S received net proceeds of DKK 4.2 million in cash.

Equity amounted to DKK 4.4 million at 30 June 2011, up from DKK 2.0 million at
31 December 2010. In addition to the effect of the directed share issue, equity
was reduced by the loss for the period.

The joint venture

The development of a portfolio of large batteries continued at the joint
ventures factory in Shenzhen, China.

This takes place in close cooperation with the Technical Development Centre of
the Goldpeak Group, Danionics joint venture partners, which are housed in the
same building as the factory.

A number of samples have been sent to potential customers, mostly Taiwan based
OEM houses. Several have already qualified Danionics as a supplier and the
first order for 10.000 large batteries for an e-book has been received. The
momentum is building up in the market with many tablets and e-books being
launched. Danionics success in this market with the large batteries will be
based firstly on being chosen by an OEM house as supplier and secondly on the
product Danionics will supply batteries to, being successful in the market.
This will take the rest of 2011 and most likely the early part of 2012 to
ascertain.

In the meantime the production of smaller batteries is continuing. There has
been an increase in demand, also batteries to accessories to tablets.

The actual numbers of batteries shipped in the second quarter was April 69.646
May 90.276, June 101.057 and July saw shipments of 232.881. For August orders
have been received for 377.359 and for September 301.306 so far.

The factory continues to refine production systems, controls and automation. A
special effort is being made in the coating area, where new machinery has been
bought and installed and the last of Danionics original coaters has been
refurbished. It is the intention of the Goldpeak Group that Danionics coating
facilities as they come on stream this autumn shall supply several of the
Goldpeak factories with material.

There is still a long way to go before a break even situation is achieved, it
is still the Goldpeak Group that finances the activities and only if several
customers buy large batteries will the turnaround have been achieved.

Danionic's partners are moderately optimistic, not least because there are far
fewer factories able to produce large batteries, than is the case in the small
battery segment.

Outlook for 2011

Danionics retains the forecast for 2011 presented in the annual report for 2010
released on 9 March 2011. The financial results for 2011 will be impacted by
marketing and sales costs related to the joint venture and administrative
expenses of approximately DKK 3 million. Overall, Danionics therefore expects
an overall loss in the region of DKK 3 million after interest income but before
recognition of the share of the profit/loss or value adjustment in Danionics
Asia Ltd.

Moreover, the company may continue to generate sales revenue should the sales
efforts undertaken by Danionics A/S result in the inflow of new orders.

Danionics A/S expects to have sufficient capital to continue in business for
the next 12 months.

For additional information, please contact:

Henning O. Jensen, Chief Executive Officer, tel. +45 88 91 98 70