Diamond Microwave Devices Closes GBP1.3m Commercialisation Round

LEEDS, England, November 30 - Diamond Microwave Devices (DMD), a spin out from the diamond
electronics team in Element Six Technologies (E6), has closed a GBP1.3m
equity investment from a consortium consisting of Oxford Technology
Management, YFM via the Partnership Investment Fund, The ERA Foundation and
two private investors.

During the course of 2009, DMD has made various performance
breakthroughs in its diamond-based transistor technology and this investment
round will be used to develop and build power amplifier modules for customer
trialling during 2010. The DMD diamond transistor technology will enable the
move to low cost, lightweight solid-state amplifiers in high power, high
frequency applications such as radar, communications, SATCOMS, and electronic
warfare.

"This new investment signals the next step for DMD. It will
allow the company to progress with its plans to commercialise its
ground-breaking technology, says Brendon Grunewald, head of E6 Ventures.

"DMD has gathered an experienced and fast-moving team both
inside the company and outside with its choice of partners, to develop the
product in close concert with its first customer. DMD's customers will get a
step change in performance per kg & per dollar - both important to deliver a
clear capability advantage. It has all the right ingredients of a high
potential venture," notes David Denny, partner at lead investor Oxford
Technology ECF.

Element Six is the world's leading supplier of industrial
Diamond supermaterials. It is an international company with its head office
registered in Luxembourg and processing and manufacturing facilities in
Germany, Ireland, UK, Netherlands, Sweden, South Africa and China. Its
business encompasses four divisions: Oil & Gas, Advanced Materials, Hard
Materials and Technologies and the company manufactures Diamond using high
pressure high temperature (HPHT) synthesis and chemical vapour deposition
(CVD)

About the Consortium

Oxford Technology Management manages the GBP30m Oxford
Technology Enterprise Capital Fund (OTECF), a specialist fund in early stage
technology companies. Founded in 1983, Oxford Technology Management manages a
series of early stage technology funds and has a portfolio of over 80 such
start up and early stage companies in its portfolios.

YFM is the UK's most active investor in small to medium
enterprises with a history that goes back to 1982. As a group YFM has over
GBP300 million under management across a number of funds. These funds have
been backed by The European Investment Fund, High Street Banks, large
corporations, pension funds, private individuals, and public sector bodies
and the European, UK Government and regional development agencies.

The ERA Foundation promotes innovation in electrotechnology to
strengthen the economic vitality of the UK. To this end, as well as seeking
to raise the profile of engineering and supporting young people at formative
stages of their careers, ERAF provides grants to projects at the early stages
of commercialisation and invests in young technology companies.

www.diamondmicrowavedevices.com

For more information contact: Dr Richard Lang, General Manager , Diamond Microwave Devices, Leeds Innovation Centre, 103 Clarendon Road, Leeds, LS2 9DF, Tel: +44(0)113-344-3914, Email: dmd at diamondmicrowavedevices.com