PRELIMINARY RESULTS

Accsys Technologies PLC
14 June 2006



14th June 2006


                            Accsys Technologies PLC

                          ('Accsys' or 'the Company')



                              PRELIMINARY RESULTS
                FOR THE 12 MONTHS ENDED 31 MARCH 2006 (audited)


Highlights

•   Establishment of Accsys Technologies and completion of the acquisition
    of Accsys Chemicals

•   Admission to AiM and completion of €27 million financing

•   First license option agreements signed in UK and Middle East,
    generating first license revenues ahead of expectations

•   Strong test results on 'Accoya', the Company's 'new wood species' brand, 
    with product endorsements from the world's number one coatings supplier,
    Akzo Nobel Sikkens, who announced product guarantees for up to thirty years

•   Arnhem facility on track for completion in the fourth quarter of 2006

•   €27 million of financial resources

•   Business development progress in wood fibre and styrene applications


Willy Paterson-Brown, Chairman, said: 'We are very pleased with the progress
that we are making on all fronts.  I am confident that Accsys will continue on
its path to making a significant impact on the building materials industry
worldwide, offering manufacturers and consumers better performing, more
sustainable products through advancing technology.'



For further information:


Accsys Technologies PLC              Collins Stewart Ltd.         Parkgreen
                                                                  Communications

Willy Paterson-Brown, Chairman       Michael O'Brien, Analyst Ana Ribeiro
+ 44 20 7598 4040                    [phone]         [phone]




CHAIRMAN'S STATEMENT

Accsys Technologies was successfully listed on the AiM market of the London
Stock Exchange in October 2005, raising €27 million before expenses.  This has
provided the Company with an excellent foundation for the continued development
of its technologies and our market launch prior to commercial start-up, which is
expected this year.  The response of the investment community and the stock
market confirmed the validity of the Company's strategy and reflected the broad
interest of corporations and individuals in technologies which offer cost and
environmental benefits to basic industries.

The past year saw enormous strides in Accsys Technologies' development, with
particular emphasis on its Titan Wood subsidiary as planned.  A new product
brand was created and launched, customer and licensee development proceeded
apace, product and process development continued positively and plant
construction, including the acquisition of a new, larger site, moved forward.
The Company expects to complete its wood acetylation production facility in the
fourth quarter of 2006, with revenue from initial sales anticipated soon after.

During the past year staffing levels were increased and management and reporting
systems transformed in readiness for full commercial production.  Development
efforts for other applications, notably wood fibre and styrene also continued,
with discussions presently underway with several of the leading global companies
in each field about how best to exploit each technology.  Considering these
activities, together with the stock market flotation, it is fair to say that
2005-6 was a busy, productive and successful year for our Company.

The directors do not intend to pay a dividend until the Company has established
strong cash flow and reported satisfactory profitability.

The Company has completed the restructuring reported at the interim stage, and
now has direct ownership of the subsidiaries likely to generate future licence
income which should enable the distribution of future earnings.



Willy Paterson-Brown

Executive Chairman



FINANCIAL INFORMATION

Basis of Preparation

The consolidated financial statements incorporate the financial statements of
Accsys Technologies PLC and all its subsidiary undertakings throughout the year
ended 31 March 2006, using the merger method of accounting as the acquisition of
Accsys Chemicals PLC meets the criteria of a group reconstruction.

In the Group financial statements, merged subsidiary undertakings are treated as
if they had always been a member of the Group.  The results of such a subsidiary
are included for the whole period in the year it joins the Group.  The
corresponding figures for the previous year include its results for that period,
the assets and liabilities at the previous balance sheet date and the shares
issued by the Company as consideration as if they had always been in issue.  Any
difference between the nominal value of the shares acquired by the Company and
those issued by the Company to acquire them is taken to a merger reserve.

The financial information set out below does not constitute the company's
statutory accounts within the meaning of section 240 of the Companies Act 1985.
The financial information for the year ended 31 March 2005 is derived from the
statutory accounts of Accsys Chemicals PLC, the former parent company of the
group, for the year then ended as the company has applied merger accounting in
accounting for the business combination.  The financial information for the year
ended 31 March 2006 is extracted from the company's statutory accounts for the
year then ended.  The statutory accounts of Accsys Chemicals PLC for 2005 have
been delivered to the Registrar of Companies and those for Accsys Technologies
PLC for 2006 will be delivered following the company's annual general meeting.
The auditors have reported on those accounts; their reports were unqualified and
did not contain statements under the Companies Act 1985, s 237(2) or (3).



Consolidated profit and loss account

                                                                        Note        2006     2006        2005      2005
                                                                                   €'000    €'000       €'000     €'000

Turnover                                                                                       80                     -

Administrative expenses

General administrative expenses                                                  (5,860)              (2,965)

Impairment of tangible and

intangible fixed assets                                                                -             (24,514)

                                                                               _________           __________
                                                                                          (5,860)              (27,479)
                                                                                          _______               _______

Operating loss                                                                            (5,780)              (27,479)

Interest receivable and similar income                                                        782                    18
                                                                                          _______               _______

Loss on ordinary activities before
and after taxation                                                                        (4,998)              (27,461)

Minority interest                                                                               -                   841
                                                                                          _______               _______

Loss for the year                                                                         (4,998)              (26,620)
                                                                                          =======               =======

Basic and diluted loss per share                                        6                 €(0.04)               €(0.43)


Consolidated statement of total recognised gains and losses

                                                                        Note                 2006                  2005
                                                                                            €'000                 €'000

Loss for the year                                                                         (4,998)              (26,620)
Exchange translation differences on consolidation and conversion to
Euro
                                                                                                -               (1,095)
                                                                                          _______               _______

Total recognised gains and losses for the year                                            (4,998)              (27,715)
                                                                                          =======               =======

All amounts relate to continuing activities.




Consolidated Balance Sheets


                                      Note                              Group             Group              Company
                                                                         2006              2005                 2006
                                                                        €'000             €'000                €'000
Fixed assets
Intangible assets                                                      13,715            14,246                    -
Tangible assets                                                        10,693             2,842                    -
Investments                                                                 -                 -               11,383
                                                                      _______           _______              _______

                                                                       24,408            17,088               11,383

Current assets

Debtors                                                                 8,411             6,224               19,646
Other investments                                                      15,513                 -               15,513
Cash at bank                                                            4,577             4,564                4,023
                                                                      _______           _______              _______

                                                                       28,501            10,788               39,182
Creditors: amounts falling due within
one year                                                                1,984             1,922               23,666
                                                                      _______           _______              _______

Net current assets                                                     26,517             8,866               15,516
                                                                      _______           _______              _______

Net assets                                                             50,925            25,954               26,899
                                                                      =======         =========              =======


Capital and reserves
Called up share capital               1                                 1,473             1,203                1,473
Share premium account                                                  25,504                 -               25,504
Merger reserve                                                        106,707           102,512                    -
Profit and loss account                                              (82,759)          (77,761)                 (78)
                                                                      _______           _______              _______

Shareholders' funds                   2                                50,925            25,954               26,899
                                                                      =======           =======              =======




The financial statements were approved by the Board and authorised for issue on
14 June 2006





Consolidated cash flow statement


                                          Note            2006            2006            2005            2005
                                                         €'000           €'000           €'000           €'000

Net cash outflow from operating
activities                                   3                         (4,468)                         (2,513)

Returns on investments and
servicing of finance
Interest received                                          269                              18
Interest paid                                                -                               -
                                                       _______                         _______

Net cash inflow from
returns on investments and
servicing of finance                                                       269                              18
                                                                        

Capital expenditure and
financial investment
Purchase of tangible fixed assets                       (7,925)                         (2,210)
Sale of tangible fixed assets                               53                               -
                                                       _______                         _______
                                                                       (7,872)                         (2,210)
                                                                       _______                         _______

Cash outflow before use of
liquid resources and financing                                        (12,071)                         (4,705)

Management of liquid resources

Increase in short term deposits                        (1,690)                         (5,616)
Increase in other investments                         (15,000)                               -
                                                       _______                         _______
                                                                      (16,690)                         (5,616)

Financing
Increase in loans                                            -                           1,434
Issue of share capital                                  27,000                          11,773

Expenses of issue of share                    
capital                                                (1,226)                           (565)
Shares issued by subsidiary                              3,000                             800
                                                       _______                         _______
                                                                        28,774                          13,442
                                                                       _______                         _______

Increase in cash                                                            13                           3,121
                                                                       =======                          ======




Notes to the financial information





1 Share capital
                                                                                               2006
                                                                                              €'000
Authorised equity share capital
200,000,000 ordinary shares of €0.01 each                                                     2,000
1,000,000 deferred shares of 10p each                                                           148
                                                                                             ______

                                                                                              2,148
                                                                                             ======
Allotted, called up and fully paid equity share capital
132,463,447 ordinary shares of €0.01 each                                                     1,325
1,000,000 deferred shares of 10p each                                                           148
                                                                                             ______

                                                                                              1,473
                                                                                             ======




2 Reconciliation of movements in shareholders' funds

                                                                    2006                2005
                                                                    €'000              €'000
Group

Loss for the year                                                  (4,998)           (26,620)
Exchange translation differences on consolidation
and conversion to euro                                                -               (1,095)
Net proceeds from issue of shares                                  25,774              21,593
Shares issued by subsidiary                                         4,195                -
                                                                   _______            _______

Net increase/(decrease) in shareholders' funds                     24,971             (6,122)

Opening shareholders' funds                                        25,954              32,076
                                                                   _______            _______

Closing shareholders' funds                                        50,925              25,954
                                                                   =======            =======




Notes to the financial information



3    Reconciliation of operating loss to net cash outflow from operating
     activities


                                                                            2006                   2005
                                                                           €'000                  €'000

Operating loss                                                           (5,780)               (27,479)
Depreciation of tangible fixed assets                                         21                    838
Amortisation of intangible fixed assets                                      531                      -
Impairment of intangible fixed assets                                          -                 24,514
(Increase) in debtors                                                      (497)                  (476)
Increase in creditors                                                      1,257                     90
                                                                         _______                _______

                                                                         (4,468)                (2,513)
                                                                         =======                =======





4        Reconciliation of net cash inflow to movement in net funds/(debt)


                                                                                                    2006           2005
                                                                                                   €'000          €'000

     Increase in cash in the year                                                                     13          3,121


     Cash inflow from increase in debt and lease financing                                             -        (1,434)

                                                                                                 _______        _______

     Change in net funds resulting from cash flows                                                    13          1,687
     Shares issued in subsidiary in settlement of debt                                             1,195          3,000
     Other non-cash movements                                                                          -            150
     Exchange differences                                                                              -            115
                                                                                                 _______        _______

     Movement in net funds/(debt) in the year                                                      1,208          4,952
     Opening net funds/(debt)                                                                      3,369        (1,583)
                                                                                                 _______        _______

     Closing net funds                                                                             4,577          3,369
                                                                                                  ======         ======







Notes to the financial information




5      Analysis of net funds


                                          At                          Other               At
                                          1 April       Cash          non-cash            30 March
                                          2005          flow          changes             2006
                                          €'000         €'000         €'000               €'000

Cash in hand and at bank                  4,564         13            -                   4,577
Debt due within one year                  (1,195)       -             1,195               -
                                          _______       _______       _______             _______

Total                                     3,369         13            1,195               4,577
                                          =======       =======       =======             =======




6       Loss per Accsys Technologies PLC share



The loss per share shown below is calculated based upon the weighted average
number of Accsys Technologies PLC Ordinary shares in issue.


                                                                                    2006               2005

Weighted average number of Ordinary Shares in issue                          116,975,026         61,596,033
Loss for the year €'000                                                          (4,998)           (26,620)
Loss per share                                                                   €(0.04)            €(0.43)



Since none of the Accsys Technologies PLC's potential Ordinary shares are
dilutive, there is no difference between basic and diluted loss per share.



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