Interim report for the period 1 January - 31 March 2009

Summary
•	As expected, Danionics reported a loss for the first quarter of DKK 0.4
million before recognition of a DKK 2.9 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 2.9 million to Danionics Asia in the first
quarter. Danionics has not made any commitment to provide any additional
capital to Danionics Asia. 

Q1 financial performance
As expected, Danionics reported a loss for the first quarter of DKK 0.4 million
before recognition of a DKK 2.9 million writedown of the loan capital to
Danionics Asia. The writedown equals the amount which Danionics contributed as
loan capital to Danionics Asia in the first quarter. Apart from the writedown,
the first-quarter financial performance was on a level with the results
achieved in Q1 2008. 

The loan capital to Danionics Asia is recognised in the amount of DKK 0, which
is unchanged compared to the end of Q1 2008. The capital contribution made
during the period has been written down over the income statement. 

Cash amounted to DKK 9.2 million. Equity amounted to DKK 9.9 million at the end
of the quarter, down from DKK 13.2 million at 31 December 2008. The reduction
in equity corresponds to the net loss for the period. 

The joint venture  
The situation for Danionics Asia remains unresolved. 

Production output was only about 50,000 batteries per month in the first
quarter, because many customers either cancelled or postponed their orders due
to the financial crisis. 

The output in April is expected to be about 165,000 batteries, and the company
has orders for almost 185,000 batteries for shipment in May. This is still well
below the break-even volume. 

It remains to be seen whether the higher volumes in April and May are an
indication of a lasting trend or are due to customers replenishing their
inventories. 

At the Annual General Meeting, the Board of Directors will explain about the
special efforts being made to support the transition from being a development
business to becoming a manufacturing unit capable of supplying large battery
volumes on a regular basis. 

Richard Koh, the company's operations manager, has tendered his resignation and
his replacement, who is currently with Danionics A/S's business partner in Hong
Kong, will take over the position a month from now. 

The future of the company
The Board of Directors of Danionics A/S will inform the shareholders in general
meeting that in addition to the 50% interest in the Danionics Asia joint
venture, it also considers the DKK 486 million accumulated tax loss to be a
potential asset. 

In order to protect this asset, the Board of Directors will recommend that the
company does not extend additional loans to the joint venture for the time
being in order to stretch its cash resources for as long as possible. 

The Board of Directors recommends that, in the event that the joint venture
reports positive developments, a small private placement be considered so as to
enable Danionics A/S to be a part of the joint venture's future developments. 

Outlook for 2009
Danionics retains the forecast for 2009 presented in the annual report for 2008
released on 24 March 2009. 

The profit/loss for 2009 will be affected by marketing and sales costs related
to the joint venture and administrative expenses of about 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 adjustment in Danionics Asia Ltd. 

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

Under any circumstances, Danionics A/S expects to have sufficient capital to
stay in business for at least the next 12 months. 


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