July 2006

Peratech Limited of Roecliffe, North Yorkshire is pleased to announce that it has concluded agreements to acquire the business of SOFTswitch Limited from Wool Equities LImited of New Zealand (NZAX 'WEL').

SOFTswitch Limited has, since 2001, provided textile based electronic switching and control systems for use in wearable electronics, automotive and medical applications for a wide range of customers. SOFTswitch designs were nominated as one of Time Magazine's 'Top 10 Coolest Inventions of 2002'.

'Following the superb inroads made by the SOFTswitch team in creating leading edge solutions for wearable electronics textiles, it became obvious to us that Peratech's QTC™ Material (Quantum Tunnelling Composites) presented a clear path for ourfuture technology in growing SOFTswitch's share of this rapidly expanding market', commented CEO of SOFTswitch.

'We have invested significantly in providing SOFTswitch with the working cash and resources it needed to maintain its position as a leader in the field of wearable electronics, however it made sense to convert the investment we have in SOFTswitch to an equity stake in Peratech, enabling combined growth for our shareholders as Peratech continues to expand the commercial exploitation of its QTC™ Material technology' commented Mark O'Grady, CEO of Wool Equities Ltd.

Peratech's QTC™ Material (Quantum Tunnelling Composite) electro-active materials were invented in 1996 by David Lussey, founder and Director of Peratech Limited.

Lussey commented 'SOFTswitch and QTC™ Material belong together - this acquistion enables us to further expand our research and development of wearable electronic textiles and bring new solutions to our clients as this emerging market continues to grow'.

QTC™ Material's provide designers and manufacturers of electronic devices with the abiltiy to provide human interaction and control electronic circuits - through the sensing of touch and pressure.

QTC™ Materials give enormous flexibility in the design, shape, thickness and style of a switch or pressure sensor and can be made in a range of elastomeric forms, including emulsive coatings, 'bulk' silicone or rubber and textile forms. Peratech and SOFTswitch pioneered the creation of electronic switches made from textiles as early as 2001 - and indeed produced the World's first 'wearable electronics' with Apple and Burton in the form of the iPOD Jacket in 2002.

Wearble electronics represents only one of the many markets for Peratech's QTC™ Material's - which have been successfully used in defence research, space exploration and consumer electronics since the company's creation in 1997.