VINDON HEALTHCARE PLC

("Vindon" or the "Company" and, together with its subsidiaries, the "Group")

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2011

Vindon, (AIM:VDN), which provides controlled environment services and products to the pharmaceutical, life sciences and heritage sectors in the UK, Ireland and North America announces its unaudited half year results for the six months to 30 June 2011.

Business highlights

UK

·     Significant increase in revenues from equipment sales

·     Continuing strong cash generation

·     Further partner agreements signed for cryogenic stem cell storage

Ireland

·     Storage capacity at Tramore facility trebled

·     Irish operation now accounts for 18% of the Group's £4.2 million contracted future income

United States

·     Turnover increased and costs reduced

·     Storage contracts secured with 5 customers

·     Vindon brand reinforced with name change to Vindon Scientific (USA) Inc.

Liam Ferguson, Chairman, commented: "We have made good progress in all aspects of our business. Our manufacturing operation is buoyant, with orders received in the half year at their highest for 4 years. The increased storage capacity at Tramore will enable us to fulfil significant new contracts. Results from our Atlanta operation are also improving, closely following our experience when we first opened in Ireland.  The conditions are in place to drive revenues and profits from all aspects of the Group's activities."

Enquiries:

Chairman's statement

On behalf of the Board of Vindon, I am pleased to present the half year results for the six months ended 30 June 2011.

The Group has increased revenue and gross profit in the six months to 30 June 2011 as a result of increased equipment sales and the maintenance of high levels of contracted storage revenue despite challenging market conditions in the pharmaceutical sector.

Financial Highlights

The Group increased sales by £488,000 compared with the corresponding period last year to achieve revenues of £3,126,000 for the half year to 30 June 2011.

During the first six months of the year we secured substantial orders for installation of environmentally controlled chambers for customers in Ireland. This made a significant contribution to sales of manufactured equipment, which were ahead of management's expectations for the period.

Gross profit was £1,841,000 for the first six months of the year (2010: £1,673,000). The Group achieved a gross margin of 58.9%, down from the 63.4% for the first half of 2010 and the 61.2% for 2010 as a whole. Margins were adversely affected by costs resulting from the development of new methods of site installation.

Administrative expenses were higher than for the first half of 2010 due to increased costs associated with our Irish operations, and costs for professional fees relating to potential acquisitions.

The rise in turnover was largely offset by reduced margins and increased administration and depreciation costs. Operating profit was £434,000 (2010: £433,000), with operating profit margin reduced from 16.4% to 13.9%.

Cash generated from operations before working capital movements was £660,000 (2010: £636,000). The receipt of substantial advance payments on new storage contracts contributed to total cash of £1,055,000 being generated from all aspects of the Group's operations.  This enabled the Group to fund a significant investment in new storage facilities in Ireland (which accounted for £346,000 of the net cash outflow from investing activities of £467,000) and to meet all other financial obligations, whilst adding £121,000 to cash and cash equivalents.

UK Storage market

The Group provides storage services in four main markets. We have maintained a strong presence in the UK stability storage market and revenues from stability storage trials remain a very significant contributor to overall turnover and profits. The Group has also maintained its position as a leading supplier of storage at ultra low temperatures to specialist biotech and biopharma companies. The market in regenerative medicine is developing, with increasing numbers of companies offering "front end" collection and processing of stem cell samples. We are developing relationships with such companies to be their cryogenic storage partner of choice. The Group continues to maintain a high profile in the heritage market and during the first half of the year hosted a seminar on the cold storage of film and other media, which was attended by UK and international curators of film archives. Both cryogenic and heritage storage are significant contributors to contracted future income.

Manufacturing and support services

The Group also manufactures equipment for customers who wish to manage their own stability storage. Customer requirements range from small standard cabinets to the installation of large stability chambers customised to meet exacting standards and configurations. The validation and servicing of equipment provides a further important revenue stream for the Group. As at 30 June 2011 annual service contracts accounted for 14% of contracted future income.

The demand for manufactured equipment has followed a familiar pattern during the early part of the year, with a very slow start followed by a significant ramp up in order intake value by the end of June. By 30 June 2011 the Group's order intake, at £1.2m, was higher than the equivalent value in 2010 of £1.1m and the highest it has been for the first half year in any of the last 4 years.

Irish market

During the first six months of 2011 the storage suite at Tramore was trebled in size in response to substantial new orders. Contracted future income attributable to storage in Ireland has more than doubled from 30 June 2010 to 30 June 2011 and now accounts for 18% of the total for the Group. Operating profit for the Irish company was £142,000 (2010: £155,000) as a result of the costs of the increased storage capacity, which will be utilised to a greater extent in the second half of this year.

US market

We continue to make steady progress at our North American subsidiary. Turnover for the six months to 30 June 2011 was £280,000, compared with £212,000 in 2010 for the 5 month period following acquisition. Cost control has been significantly improved with administrative costs now running at 60% of the level inherited at acquisition. Following the opening of the stability storage suite in late 2010, orders have been secured with 5 customers. The Vindon name is now more established in the North American market, and, our American subsidiary will now trade as Vindon Scientific (USA) Inc.

Employees

We have taken steps to strengthen our team in key areas. A new head of manufacturing has been recruited to ensure we maintain excellent product quality and customer service as our equipment sales increase. This change has released time for the directors to support growth in our American operation. We benefit from low staff turnover and the loyalty and commitment of our workforce are important factors underpinning the Group's strength.

Business development and future prospects

We are committed to improving the profitability of the Group through the expansion of the business organically, and we continue to evaluate strategic acquisition targets. The Group's prospects are enhanced by contractual commitments made by customers on storage and service contracts in the UK, Ireland and USA. As at 30 June 2011 the contracted future income amounted to £4.2m (2010: £3.9m), the highest this figure has been for 4 years.

Margins are likely to remain under pressure in our markets. We have on-going initiatives to improve profitability by improving efficiency whilst maintaining the quality of our products and services. Significant product development is also planned to widen the range of equipment offered to our existing and potential customers.

I am confident that the increasing quality, diversity and value of our product and service offering will deliver long term, profitable growth.

Liam Ferguson

Chairman

7 September 2011