AVILON SIGNS LETTER OF INTENT ON ANTIMICROBIAL AND ANTIVIRAL VISCOSE FIBER MANUFACTURING

Neo Industrial Oyj 

22.09.2011 15:00

Dissemination of a Adhoc News, transmitted by DGAP - a company of
EquityStory AG.
The issuer is solely responsible for the content of this announcement.

---------------------------------------------------------------------------

Research: new product destroys MRSA by 99.99 percent

NEO INDUSTRIAL PLC STOCK EXCHANGE RELEASE    22 September, 2011 at 4 pm

AVILON SIGNS LETTER OF INTENT ON ANTIMICROBIAL AND ANTIVIRAL VISCOSE FIBER
MANUFACTURING 
Research: new product destroys MRSA by 99.99 percent

Avilon Ltd, part of Neo Industrial's Viscose Fibers business, has today signed
a letter of intent with Finnish SilverPhasE, concerning the product
development, marketing and manufacture of antimicrobial and antiviral viscose
fiber. This concerns a new technology, more cost-effective and efficient
technology than existing ones, enabling a vast new product family. 

Carbatec Ltd, also part of Neo Industrial's Viscose Fibers business, and
SilverPhasE are planning to start a joint venture, to which the relevant patent
rights will be given. 

Antimicrobial fibers are used in the manufacture of textiles, wipes, filters
and other fiber product that are bacteria, fungus, alga and virus resistant. 
They are used in, for example, sports and military clothing and various
healthcare applications. The best and user-friendliest way of making fiber
antimicrobial is adding silver that kills microbes. 

The use of silver in antimicrobial fibers has long traditions. What makes the
silver polymer technology, developed by SilverPhasE, revolutionary, is the
extremely cost-effective use of silver. In turn, viscose fiber is an ideal
fiber for applying this technology to different uses. 
- Avilon's antimicrobial viscose fiber will be significantly more
cost-effective and of higher performance than any antimicrobial fiber on the
market. The cost benefit extends from us all the way to the end-user of the
textile, says Avilon's Managing Director Heikki Hassi. 

Antimicrobial fiber is currently manufactured by an estimated 100,000 tonnes
per year, and its market grows by some 15 percent per annum. There is demand
for antimicrobial viscose fiber within Avilon's clientele, where antimicrobial
textiles are already being manufactured. 
- Our customers welcome cost-effectiveness adding innovations with great
interest. Also, new applications and customers will surely start emerging once
we revolutionize the cost-structure of the market, adds Hassi. 

The need for bacteria and virus resistant textiles is greatest in the medical
and healthcare industry. The largest demand growing factor is the prevention of
MRSA. Tests run by external research institutes have shown, that Avilon's new
product is capable of destroying, for example, the MRSA bacteria by 99.99
percent. 
- In the fight against MRSA, it is important to transform a maximum amount of
surfaces into pathogenic inhibiting. A hospital cannot, for example, use sheets
starched with antibiotics or dress patients and staff in antibiotic clothing,
characterizes Jyri Nieminen, Development Director of SilverPhasE. 

The technology developed together by SilverPhasE and Avilonin, has been
laboratory tested and samples have already been delivered to customers.
Avilon's Valkeakoski factory is capable of manufacturing antimicrobial viscose
fiber as soon as it is restarted after the current shutdown. 
- Despite Avilon's current difficulties that derive from the basic viscose
fiber markets, significant ventures are underway in the company's technology
sales and product development, reminds Neo Industrial plc's Managing Director
Markku E. Rentto. 

Avilon's technology and specialty product portfolio is managed and developed by
the technology company Carbated Ltd, a part of Neo Industrial's Viscose Fibers
business. 



Neo Industrial Plc

Markku E. Rentto
Managing Director


FURTHER INFORMATION:
Heikki Hassi, Managing Director, Avilon, tel. +358 20 7800 5061
Jyri Nieminen, Development Director, SilverPhasE, tel. +358 40 1544 225

www.neoindustrial.fi
www.silverphase.fi

Neo Industrial Plc's strategy is to invest mainly in industrial companies with
similar synergic benefits. The aim of investments is with active ownership to
develop the purchased companies and establish additional value. Returns are
sought through both dividend flow and an increase in value. Neo Industrial's B
shares are listed on the NASDAQ OMX Helsinki Stock Exchange. 

Neo Industrial's business segments are Cable (Reka Cables, Expokabel, Nestor
Cables), Viscose Fibers (Avilon) and Single Family Housing (Finndomo).
News Source: NASDAQ OMX



22.09.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------
 
Language:     English
Company:      Neo Industrial Oyj
              
               
              Finland
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         FI0009800296
WKN:          
 
End of Announcement                             DGAP News-Service
 
---------------------------------------------------------------------------