Acquisition of RZ Pressure Instruments Supply SARL

The Board of Solid State plc (“Solid State”) is pleased to announce that it has acquired the entire issued share capital of Geneva, Switzerland, based RZ Pressure Instruments Supply SARL (“RZ”) for an initial consideration of £450,000.  A further payment will be made based on any increase in value of net assets at completion, expected to occur in December 2007, from the value of the net assets at 31 December 2005 of £211,690 (the “Acquisition”).  The initial consideration is being satisfied in cash and is being financed from the Group’s own resources and the Directors estimate that the net assets adjustment at completion will be approximately £50,000.

RZ is a leading European battery pack manufacturer serving principally the oil & gas industry.  The addition of RZ to our Steatite battery pack business will make us the largest supplier in Europe of Electrochem products and strengthens our international customer base in the oil & gas market.

Since the acquisition of Steatite Limited in 2002 our strategy has been to develop our core businesses in batteries, components and computing.  The addition of industrial computer supplier Wordsworth Technology Limited in 2005 and now RZ helps us further this strategy.  We continue to seek further acquisitions in components to enhance our core Solid State Supplies Limited component business.

The audited accounts of RZ, as at 31 December 2006, show that the company reported profits before tax of £42,843, on turnover of £696,913 (Based on an exchange rate of £1=CHF2.40, as at 2 November 2007).  The net assets of RZ as at 31 December 2006 were £243,518.  Based on management accounts, trading at RZ during the current financial year has been ahead of the same period last year.

The Board is also pleased to report that the Group’s existing businesses are trading satisfactorily and that the interim results for the six months ended 30 September 2007 will be released in December.

5 November 2007

Further enquiries:

Gary Marsh
Group Managing Director
Solid State plc
01892 836 836

Philip Davies
Charles Stanley Securities
Nominated Adviser
020 7739 8200