psi sale falls thru, page-2

Might screw the chart up a bit for a while . .

SETTLEMENT OF PSI SALE FAILS TO COMPLETE
31 October 2008

Ammtec regrets to inform shareholders that the purchaser of its 68.5% interest in US based resin manufacturer Purity Systems Inc (PSI) has failed to settle the transaction by the previously agreed revised date of 30 October 2008.
The sale agreement was binding on the purchaser, who had earlier advised that, their due diligence requirements had been met and had warranted that they had adequate financial resources to complete the settlement.

While the purchaser may choose to pursue settlement at a later date, Ammtec is no longer bound to sell its share of PSI to the purchaser and expects that a sale of its PSI shares will not occur in the near term.

As the PSI transaction will not complete, the company’s projections for FY09 revert to the original guidance issued on 7 August 2008, with revenue at $55.6million, NPAT
of $10million and EPS at 40cents per share.

Ammtec remains committed to the development of the PSI business and has continued to progress marketing of the PSI resins while the sale process was ongoing. The PSI business should make a material contribution to Ammtec’s earnings in future years.