Interim report for the period 1 January - 30 June 2010

Summary
•	As expected, Danionics reported a loss for the first half year of DKK 1.7
million before recognition of a DKK 5.3 million value adjustment in Danionics
Asia. 
•	The company reiterates its full-year forecast of a loss of DKK 2-3 million
before recognition of the share of the profit/loss or value adjustment in
Danionics Asia. 
•	 Danionics contributed DKK 5.3 million to Danionics Asia in the first half
year. Danionics has not made any commitment to provide any additional capital
to Danionics Asia. 

Management's report

H1 2010 financial performance
As expected, Danionics reported a loss for the first half year of DKK 1.7
million before recognition of a DKK 5.3 million writedown of the loan capital
to Danionics Asia. The writedown equals the amount which Danionics contributed
to Danionics Asia as loan capital in the first half year. Apart from the
writedown, the H1 financial performance was on a level with the results
achieved in H1 2009. 

The loan capital to Danionics Asia is recognised in the amount of DKK 0, which
is unchanged compared to 30 June 2009. The capital contribution made during the
period has been written down over the income statement. 

Receivables and prepaid expenses amounted to DKK 1.7 million, of which a VAT
receivable amounted to DKK 1.3 million. Talks are still ongoing with the Danish
tax authorities about this receivable, and the amount is subject to
uncertainty. 

Cash amounted to DKK 3.9 million. Equity amounted to DKK 5.2 million at 30 June
2010, down from DKK 7.3 million at 31 December 2009. The private placement
completed in the first half of 2010 lifted equity by DKK 4.8 million net of
costs. 

The joint venture  
A number of positive developments occurred on several fronts in the second
quarter and this has continued into the third quarter. 

A total of 208,000 batteries were sold and shipped in the first quarter and the
number rose to 354,000 in the second quarter. In July, 142,000 batteries were
shipped and in August, the number will reach 276,000. The joint venture has
orders of similar volumes on hand for the next two months. 

A very large part of these shipments are made to one specific customer, one of
the world's largest manufacturers of mobile phones, which has now been a
customer of Danionics Asia for two years. This is a positive situation, as the
customer has gradually increased its orders, but obviously it also involves a
risk. 

During the summer, the joint venture received a first order from the European
high-tech business for 15,000 batteries. This is a battery custom-developed by
Danionics for one of this company's products. 

Progress has also been made in production. The factory has now installed its
first winding machines for various battery sizes. They make for more efficient
production and consistent quality. 

This has reduced the monthly losses substantially, but the joint venture is
still losing money each month. The number of batteries manufactured and sold
each month must be increased in order to reach break even. 

Outlook for 2010
Danionics retains the forecast for 2010 presented in the annual report for 2009
released on 11 March 2010. The result for 2010 will be affected by marketing
and sales costs related to the joint venture and administrative expenses of
around DKK 2.5 million. Overall, Danionics expects a loss in the range of DKK
2-3 million after interest income but before recognition of the share of the
profit/loss for the year or value adjustments in Danionics Asia Ltd. 

Moreover, the company may continue to generate sales revenue if the sales
efforts undertaken by Danionics A/S should result in the addition of new
orders. 

Danionics A/S expects to have sufficient capital to continue in business for
the next 12 months. 




For additional information, please contact:
Henning O. Jensen, Chief Executive Officer, tel. +45 70 23 81 30