EAG Limited
19 December 2007

EAG Limited

Trading Update

EAG, a leading global provider of materials characterisation and microelectronic
release to production/failure analysis services, is today announcing an update
on trading for the year ended 31 December 2007.

In fiscal 2007, EAG expects reported revenues to be approximately $69 million, which is marginally lower than expected. This comprises first half revenues of $33.4 million and second half revenues of $35 to $36 million. Pro forma revenues for fiscal 2007, assuming all acquisitions were owned for the full twelve month period, are expected to be in excess of $108 million. Overall expense levels in the second half of the year will be higher than previously anticipated. EAG has incurred higher than expected personnel and system costs to upgrade its finance function following the IPO, additional costs from the acceleration of the acquisition strategy and one-off severance and related costs primarily for the reorganisation of the Board and senior management as set out below. As a result,
operating profit for the current year, including and largely due to one-off costs, is expected to be approximately $3.0 million lower than current market expectations.

The Board has carried out a review of the Board and management structure of the
Company and, with immediate effect, the following changes have been implemented:

Ian Johnson, currently a non-executive director, is appointed
non-executive Chairman of the Board

David Lahar, currently Executive Chairman, is appointed Chief
Executive Officer

Jim Cowart has relinquished his position as Vice Chairman and remains
a non-executive director

Tom Pfeil, currently Chief Executive Officer, has resigned from the
Company

In addition, the Company intends to upgrade its current CFO position to board
level and has therefore initiated a search for a new Finance Director.

Over the last two years, EAG has successfully acquired and integrated 15
companies in the surface analysis and materials characterisation market,
achieving a leading worldwide market share, which is estimated to be in excess
of 35%. At the time of EAG's IPO in June 2007, the Company stated that it
intended to pursue a similar acquisition and consolidation strategy in the
microelectronics release to production and failure analysis ('RTP/FA') market,
thereby offering its customers an integrated range of testing services,
particularly for the rapidly growing fabless semiconductor industry. This
acquisition programme was originally intended to be completed by the end of
fiscal 2008 but has been significantly accelerated with the acquisitions of
MEFAS, DSL Labs, and White Mountain Labs. Following these acquisitions, EAG
expects to have a worldwide market share of the RTP/FA market in excess of 30%.
The integration of these RTP/FA acquisitions will create a business that
provides a complete end-to-end set of services to customers from prototyping to
volume production of new integrated circuit designs.

Ian Johnson, Chairman, said: 'EAG enters 2008 with its acquisition plans ahead
of schedule and having built critical mass in another, fast growing market. The
management changes being announced today put in place a structure appropriate
for what is now a significantly bigger business. The Board remains convinced
that these strategies will build a strong, sustainable and attractive business
for shareholders.'

The Company will issue its Preliminary Results for the year ended 31 December 2007 on 10 March 2008.

why has it gone down so much?

is this worth buying into?

FWIWit looks like this buiness is based in Ireland ( which I don't regard as a good sign), and there seem to be some musical-chairs with Execs...and a vacant chair in the Finance dept.

Furthermore it looks like they came to Market in June/July 2007 and the sp has been weak - upon this Band News it's fallen as it look like this is full of holes.
Good if it was a Swiss Cheese, but not for a business operating in the Semiconductor chip-testing arena. Also T/O is in Dollars, maing this susceptable to Currency changes.

-Frankly, I doubt if it's worth half of this 60p sp, but what do I know?
((At least wait for the Update, March2008, eh?))