The Board of Danionics A/S has decided to complete a capital increase in the Company by issuing 1.395.056 new shares of DKK 1 (nom. DKK 1.395.056) as a directed issue by payment in cash. The capital increase of 9,99% of the share capital is made pursuant to Article 18 of Danionics' articles of association. The share issue is without preemptive rights. The subscription rate is DKK 3,60 based upon “all trades” in the share on NASDAQ OMX Copenhagen in Q1 2010, contributing with a gross proceeds of DKK 5.022.202. The transaction costs are estimated to DKK 200.000. The capital increase is a directed issue to Surplus Enterprise Limited, Hong Kong (a company owned by GP Batteries Group, Hong Kong). The proceeds from the capital increase will be injected in the Joint Venture Company Danionics Asia Ltd. as a loan and GP Batteries Group will on this basis also inject a similar amount. The total amount will secure sufficient liquidity to continue the operations in the Joint Venture for the next 6 months. Danionics A/S has as mentioned earlier not contributed with cash to the Joint Venture the last 12 months but by this solution it has been possible to maintain Danionics 50% ownership of the Joint Venture for further 6 months. The Board of Danionics A/S will follow the development in the Joint Venture closely and prepare for a further capital increase if possible before the end of the 6 month period. At the same time the Board will investigate other possibilities for further capital to maintain the 50/50 ownership. The new shares will rank pari passu in all respect with existing Danionics shares. The new shares will be listed on NASDAQ OMX Copenhagen in the existing ISIN code at the date of the registration of the capital increase with the Danish Commerce and Companies Agency. Registration will take place soonest possible. Yours sincerely, Danionics A/S The Board of Directors For additional information, please contact: Henning O. Jensen, Chief Executive Officer, tel. +45 70 23 81 30