Eruma plc / Index: AIM / Ticker: ERU / Sector: Support Services

For Immediate Release                                                                                           27 June 2008

Eruma plc ("Eruma" or "the Company")

Final Results

Eruma plc, the AIM traded specialist provider of counter terrorism and burglary protection products and emergency lighting, announces its audited results for the year ended 31st December 2007.

Overview

• Orders for the year increased by 68% to £1,106,000 (2006: £658,000) 

• Revenue increased by 74% to £955,000 (2006: £548,000)

• Expanded offering to include emergency and security lighting systems through acquisition of Illuminex Ltd and associated intellectual property 

• Successfully raised £1.42 million through the issue of 20.15 million new ordinary shares

• Increased product investment through enhanced bomb blast test for the Security Blinds product - now withstanding 500 Kg TNT equivalent explosion

• Increased expenditure on research and development 

• Strengthened shareholder base - welcomed first major institutional investor Majedie Investments plc

The Company's Annual General Meeting will be held at 9:00 am on 18th August 2008 at Underwood House, Shepherdess Walk Buildings, Underwood Street London N7 7LG.

A full copy of the Company's Report and Accounts can be found at www.erumaplc.com and copies of the Company's Report and Accounts have been posted to Shareholders today.

For further information please visit www.erumaplc.com or contact:

Chairman's Report

Introduction

The year ended 31st December 2007 was a period of rapid growth for Eruma in which we surpassed many major milestones in developing our two key product ranges, Security Blinds and Illuminex security and emergency lighting. In the period we have received sales orders of over £1 million for the first time in the Company's history and I expect to see this growth continue in 2008 and beyond.

Security Blinds

Throughout the reporting period Eruma has continued testing and improving the Security Blind range which now includes the Secur™, Secur™ Plus and Secur™ Ultra models. These products not only target corporate, commercial and domestic markets for burglary and ram raid prevention as was the Company's initial strategy, but have now been adapted to exploit the burgeoning anti-terrorist market.  

The Company placed a considerable amount of emphasis and investment in research and development ("R&D") activities in 2007, applying multiple tests to our product range. In early November we announced that the enhanced Security Blind product successfully withstood a large bomb blast in excess of 1,000 pounds TNT equivalent - five times the size of previous explosive test blasts. This was a significant and timely development for the Company as Gordon Brown's National Security announcement on 14th November 2007 opened up a huge market for companies providing products which prevent damage from terrorist bombs. Further bomb blast tests on Security Blinds products are currently in progress as we advance the product's capability in blast mitigation.

In line with shifting the focus of the products to include anti-terrorism, the Company is making it a priority to employ specialist individuals into the Eruma team, who will be able to assist in the development of superior products with which we could look to market further afield into the global arena.

Illuminex

Eruma completed the 100% acquisition of Illuminex and its associated intellectual property rights in July 2007. Illuminex was a new company on acquisition and it was the Directors belief that the state-of-the-art emergency lighting product complemented the Company's existing exposure to the security market through our flagship Security Blinds products.  

Health and Safety legislation in the UK dictates that it is a requirement for public sector buildings to have back-up lighting in the event of a power cut or lighting failure, which must be tested on a regular basis.  

This legislation puts Eruma in a very competitive position in relation to future sales as the Illuminex range of products uses Light Emitting Diodes ('LEDs') to provide emergency lighting systems for public / commercial premises which have a reduced power consumption compared to existing products. The state-of-the-art technology can be managed remotely allowing low-cost maintenance in such environments. Due to the intelligent low-cost and low-carbon footprint aspects of the Illuminex products, the Board is of the belief that there is currently no known competition offering comparable products to the Illuminex systems.

The superiority of the product was demonstrated post period in March 2008 when Eruma announced that it had entered into an agreement with Philips Lighting UK, the UK lighting division of Royal Philips Electronics. Philips Lighting UK will market the DALI protocol version of Illuminex's Xscape Series emergency lighting product range within the UK.  

The Xscape products incorporate the Philips 'K2' and 'Rebel' LED technology, which together with the use of lithium battery technology and microprocessor control, provide considerable benefits including up to a 98% reduction in energy consumption when compared with a standard 8 watt fluorescent tube luminaire. Additionally, these intelligent products have an inbuilt testing capability and internal memories for retrieval of data at any time which ensure all major components are fully monitored according to the stipulated code of practice and also keep maintenance costs to a minimum.

Financial Results

I am pleased to report that revenue continues to increase year on year with an increase of 74% to £955,000 and that orders taken by Eruma in the same period increased to £1.1 million, a growth of 68%.  Operating loss before tax is £837,000 (2006: £878,000) and a basic loss per share is 0.9p (2006: 1.14p).  

Fundraising 

During the period the Company raised £1.42 million through the issue of 20.15 million new ordinary shares. The proceeds of these placings were used for general working capital as well as the training of our enlarged full time staff of 30, R&D across our product range and increased sales and marketing. We also created volume stocks of the Illuminex product in addition to taking initial steps towards expanding global penetration into the anti-terrorist markets. 

Institutional Investment

In December 2007 we welcomed Majedie Investments plc as our first major institutional shareholder, which I believe is a positive reflection of the work the Company undertook within the period to progress to the next stage of development. Looking forward I hope to further strengthen our shareholder base and attract additional institutional investors as the Company progresses.

The Board 

During the period we welcomed Kevin Coffey and David Alexander as Executive Director and Non-Executive Director respectively. Kevin joined the board following the acquisition of Illuminex where he is General Manager and brings to Eruma over 30 years of experience in R&D as well as 20 years experience in manufacture of micro controller techniques. He is also well versed in the security business with previous experience at organisations including EMI, ADT, Tyco and PSS.

David, who joined in July 2007, is currently Managing Director of strategic advisory business Solutionsmtd Limited, which focuses on acceleration through organic development, new market entry mergers and acquisitions. He has held numerous positions within both public and private companies and is also a published author and lecturer on customer relationship management including developing strategic partnerships. We believe David's experience, which includes strategy consulting, financial services and executive search makes him a significant addition to the Board and we look to benefiting from his expertise.

During the period, Finance Director Nigel Young stepped down from the Board due to his relocating to Qatar. We thank Nigel for all of his help in the early years of the Company, particularly through the AIM admission process, and wish him and his family good luck in their new life in Qatar.

Outlook

2007 saw significant investments for Eruma and this will continue through 2008. We are continuing the development of our Security Blinds products, testing extensively for both ram raiding and blast protection to produce the safest possible range in our chosen market place. We are also continuing to invest in our emergency lighting products through Illuminex and as orders increase we will actively pursue international outsourcing opportunities for our offerings. As the threat of terrorism is ever increasing and the need for green emergency lighting solutions grow, I believe Eruma is ideally placed to become a leading player within the global security industry.

Philip Barnett

Chairman

26 June 2008 

Proposed dividend

The directors do not recommended the payment of a dividend during the year.

Directors and directors' interest

The directors who held office during the year were as follows:

Phillip Barnett

Alan Davis

Wayne Money

Brian Wilkins

Nigel Young (resigned 31 January 2008)

David Alexander (appointed 18 July 2007)

Kevin Coffey (appointed 18 July 2007)

Details of directors' beneficial interest in shares are as follows

The beneficial holdings disclosed include, where applicable, the holdings of immediate family

As at 31 December 2007 the Company had granted the following options and warrants to the directors of the company

Substantial interests

As at 27 May 2008, the Company had been notified of the following beneficial interests in 3% or more of the issued share capital:

Consolidated income statement

For the year ended 31 December 2007

Consolidated balance sheet

At 31 December 2007

These financial statements were approved by the Board of Directors and authorised for issue on 26 June 2008. They were signed on its behalf by:

Wayne Money

Director

26 June 2008 

Consolidated statements of changes in equity

For the year ended 31 December 2007