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AEA Technology plc ('AEA' or 'the Group')

Interim Management Statement

AEA Technology plc, a leading climate change and energy consultancy, is today publishing its Interim Management Statement for the period from 1 April to 22 July 2009 ahead of the Annual General Meeting today.

The Group continues to make good progress.

In the US, AEA has won a number of significant contracts taking its UK expertise in energy and climate change into the US Government market. Contracts have been won with the Department of Energy (DOE), Department of Justice (DOJ) and the State of Virginia, and over a five-year period these together have the potential to be worth up to $100m. The first phase accounts for some $50m with DOE, DOJ and the State of Virginia with further work to follow, subject to performance.

The Group has been extremely active in bidding for new contracts and management expect investment in bidding to continue at a high level, particularly in the first-half of this financial year. Overall in the US the Group is trading strongly.

In Europe, progress is also being made but the outlook is more subdued because of the broader economic conditions affecting the UK. The orders position is improving and there are a number of opportunities emerging where the new combination of AEA's IT and information handling capabilities, and strong energy and climate change experience, gives the Group access to new customers and a very strong competitive position within its existing customer base. In difficult economic times both government and the private sector want to make decisions on where to invest based on good data. AEA's integrated offering, which involves capturing, organising and advising on data in the energy and climate change market, gives the Group a very strong proposition.

The Group continues to focus on cash and this means that AEA's net debt position continues to be in line with management expectations, allowing sufficient headroom for continued investment in the Group as a whole.

Overall, the economic climate in the UK remains uncertain and visibility is restricted. However, there is continued encouragement for the Group in the US, where success has already been achieved and there is good potential for further growth. A strong pipeline of order opportunities is being vigorously pursued.

 

For further information, please contact:

Madano Partnership:                                                 020 7593 4000

Matthew Moth/Mark Way

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