INOV8 Technologies Ltd joins forces with Mid-States

Mid-States disposed of its automotive after-market supply business in October 2001 and has since then maintained its cash balances of some £7million while seeking a suitable acquisition.

INOV8 Technologies' history as a key supplier of test, automation and development equipment for the automotive fuel systems industry goes back as far as the early 1930s. Based in Buckingham, UK, the success of the company and its high reputation is based on innovation and strong IP as well as on expert industry knowledge and fast response to the demands of its customers. INOV8 Technologies' capabilities include combustion chemistry, electronics, software, mechanical and system design. INOV8 primarily provides technology and products for the development and test of automotive fuel systems, with customers worldwide extending from laboratory and development cells through to high-volume test and calibration production lines. INOV8's equipment, which measures tiny quantities of liquid at extremely high speed, is in widespread use in the calibration of fuel injectors worldwide. INOV8 has created software especially to collect and process data from its metering units.

Moving Sun Limited holds the intellectual property rights for a range of products and technologies, as well as trademark and design rights. The key product, scheduled for launch at the end of 2006, is an air disinfection device based on research originated over 15 years ago relating to the scientific understanding of the process of atmospheric disinfection, whereby pathogens are killed by the action of chemical factors naturally present in fresh air. Operated within an enclosed environment, one unit running continuously has the capacity to substantially reduce levels of airborne pathogens. A patent has been applied for to protect key elements that enable the device to operate efficiently and cost effectively.

Both companies share a common vision of creating competitive advantage for customers through a close understanding of their business needs and processes, and the development of inventive application-specific solutions. With the increasingly stringent EU and US emissions legislation, INOV8 believes that its technology using atmospheric and combustion chemistry addresses these new requirements and therefore is well placed to benefit from growth in this area.

David Plucinsky, Chairman, said: "We are pleased that the acquisition has now been successfully completed and would like to thank our shareholders for their continued support. The move to AIM gives Mid-States the flexibility required to achieve the substantial growth that we think this acquisition will provide".