EKF DIAGNOSTICS HOLDINGS PLC

NOTES FORMING PART OF THE INTERIM FINANCIAL STATEMENTS

1. General Information

EKF Diagnostics Holdings plc is a public limited company incorporated in the United Kingdom (Registration Number 04347937). The address of the registered office is 14 Kinnerton Place South, London SW1X 8EH.

The Group has historically been engaged in the development and exploitation of a portfolio of sports and lifestyle brands, trademarks, trade names and logos. On 4 January 2010, the Company's shareholders approved a proposed change in strategy of the Company to dispose of the brands and to build a business focused within the In-Vitro Diagnostic devices ("IVD") market place. On 2 July 2010, the Company's shareholders approved the acquisition of EKF-diagnostic GmbH, a company which focuses on the development, manufacture and selling of diagnostic instruments and reagents to clinical and research laboratories, doctors' offices and sports medicine testing sites worldwide.

The financial information in these interim results is that of the holding company and all of its subsidiaries. It has been prepared in accordance with the recognition and measurement requirements of International Financial Reporting Standards as adopted for use in the EU (IFRSs). The accounting policies applied by the Group in this financial information are the same as those applied by the Group in its financial statements for the year ended 31 December 2009 and which will form the basis of the 2010 financial statements except for a number of new and amended standards which have become effective since the beginning of the previous financial year. These new and amended standards are not expected to materially affect the Group.

The financial information presented herein does not constitute full statutory accounts under Section 434 of the Companies Act 2006 and was not subject to a formal review by the auditors. The financial information in respect of the year for the year ended 31 December 2009 has been extracted from the statutory accounts which have been delivered to the Registrar of Companies. The Group's Independent Auditor's report on those accounts was unqualified, did not include references to any matters to which the auditor drew attention by way of emphasis without qualifying their report and did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006. The financial information for the half years  ended 30 June 2010 and 30 June 2009 are unaudited and the twelve months to 31 December 2009 are audited.

2. Intangible assets

Intangible assets represent acquired trademarks and are recorded at historic cost.  No amortisation is charged as they are regarded as having infinite lives. The annual results reflect the expenditure incurred in the support and development of these brands. In addition, the trademarks are supported by the existence of international licensee agreements, which establish obligations as to guaranteed minimum licence income and marketing arrangements with the view to maximising long-term growth. The directors believe that the licence agreements will be renewed at the end of their legal expiry dates and that the value of the trademarks will be maintained. The carrying values are reviewed annually and written down to the estimated recoverable amount as necessary.

3. Share-based payment

The group operates share incentive and option schemes for directors and employees. For all share awards the fair value as at the date of grant is calculated using an option pricing model and the charge to the income statement is recognised as a staff cost over the vesting period.

4. Segmental reporting

The board considers that the Group has a single business segment which generates income by licensing its two brands. The revenue, expenditure and result reported in the income statement and the assets and liabilities reported in the balance sheet all relate to this single segment. An analysis of turnover by geographical destination is given below:

5. Loss per share

Loss per share has been calculated using the weighted average number of shares in issue during the relevant financial period. The weighted number of equity shares in issue and the earnings, being the loss after tax, are as follows:

The diluted loss per ordinary share are identical to those used for the basic earnings per ordinary share as the exercise of share options would have had the effect of reducing the loss per ordinary share and are therefore not dilutive.

6. Dividends

There were no dividends provided or paid during the six months.

7. Post balance sheet events

On 2 July 2010, the Company's shareholders approved the acquisition of EKF-diagnostic GmbH, a company which focuses on the development, manufacture and selling of diagnostic instruments and reagents to clinical and research laboratories, doctors' offices and sports medicine testing sites worldwide. The total consideration of Eur 14.32m was satisfied by Eur11.32m in cash on completion and Eur3m deferred consideration in shares. At the same time, the Company raised approximately £15.06m  (gross) by means of the issue of 100,435,653 new Ordinary Shares at 15 pence per share to fund the acquisition and to provide working capital. The Company also changed its name from International Brand Licensing plc to EKF Diagnostics Holdings plc.

On 21 July 2010, the Company announced that it had sold the rights to the Admiral sports brand in China, Hong Kong, Macau, Taiwan and Korea for a total cash consideration of £500,000 to Well Team Limited, which is wholly owned by the PNH Group of Hong Kong ("PNH").

8. Company website

A copy of this announcement is available from the Company's website, being www.ekfdiagnostics.com.