PURE.L Regulatory News (PURE)

PURECIRCLE LIMITED

("PureCircle" or the "Company")

Interim results for the six months ended 31 December 2010 and Quarterly Stevia Market Update

PureCircle (www.purecircle.com), the world's leading producer of Natural High Purity Stevia sweeteners ("Stevia") today announces results for the six months ended 31 December 2010 (H1 FY2011) and its second quarterly Stevia market update.

HIGHLIGHTS

·; Sales reflect timing of call offs of contracted volumes which are planned to be delivered in H2.

·; At 31 December 2010 the Group had gross assets of $270m, including inventories of $114m.

·; The Group has cash and banking facility headroom of more than $50m.

·; Two additional global contracts signed with new Global Key Accounts (GKA's)

·; Supply Partnerships with two existing GKA's extended and deepened.

·; The Company's underlying Stevia sales excluding these GKA's increased 227%.

·; FY 2011 sales expected to be in the range $50m to $60m.

·; Nielsen based data shows USA retail consumption of Stevia sweetened products for 2010 totaled $809m, up 126% on 2009.

·; PureCircle market share (excludes table top sweetener category, includes indirect sales) of USA retail products is running in excess of 90%.

·; Joint Ventures with Tereos and Nordzucker and partnership with Dohler have been formalized and are operational.

Paul Selway-Swift, Chairman of PureCircle, commented

"The first half FY 2011 has been a challenging period with sales not reflecting the underlying growth in the Stevia market. We have a highly scaled business model that leaves results sensitive to sales volumes.

We remain confident of the long term opportunity. The range of products already launched, the strong consumer reaction to Stevia and the quality of the companies using Stevia regularly all suggest that it is developing into a significant global industry.

When it does, PureCircle will be well placed to capture the opportunity. We are well capitalized, the supply chain is ready and we have the strategic partnerships in place to service the global industry."

21 March 2011

ENQUIRIES

PureCircle Limited

Magomet Malsagov, Group CEO +60 12388 8049

William Mitchell, Group CFO +44 7974 005163

RFC Corporate Finance Ltd

Stephen Allen +61 89480 2500

Chairman & Chief Executive's statement

1. REVIEW

This report covers the six months to 31 December 2010. The results reported are disappointing with low sales, due to the call off timings of contracted volumes, leading to the Company trading at a loss.

As noted in prior reviews, our assessment is that High Purity Stevia ("Stevia") will become a mass volume mainstream ingredient which will require scaled supply. Initial Nielsen based retail consumption data for the USA indicate almost a billion US$ of retail sales within two years of the USA market opening and in that such a market is indeed developing. Our high market share, our continued contract wins and our strategic partnerships are positioning us to be well placed when the mass market does develop.

Our business model is sensitive to volumes and whilst operating at low capacity our profitability can be impacted significantly by relatively modest changes in volume. Our assessment is that it will be Calendar 2012 or 2013 before the true velocity of Stevia sales globally becomes apparent.

2. RESULTS

Revenues of $13.6m for H1 FY 2011 were $24m lower than the comparable sales for the six months to 31 December 2009 (H1 FY 2010). Within that total, sales of Stevia were $12m lower and sales of stevia extract and co-products were $12m lower.

The lower Stevia sales in H1 FY2011 were due to the timing of off take volumes for one of the Company's material Global contracts. The comparable FY 2011 volumes are already committed and will be delivered before 30 June 2011 and booked as H2 FY 2011 sales. After adjusting for the timing of this contract, underlying sales of Stevia increased by $7m (227%), in line with increases in the global stevia market (see market analysis later).

Sales of stevia extract and co-products tend to be related to overall production levels. In H1 FY2011 they totalled $2m, $12m lower than H1 FY 2010, reflecting the lower production levels in H1 FY 2011.

The Group's long term business model is to achieve a variable gross margin of at least 50% on its Stevia sales. In H1 FY 2011 we achieved 46%.

The low gross profit of $0.9m reflects the Group's 1H FY 2011 sales being just a low percentage of production capacity. Gross profit margin will improve as sales throughput increases.

Finance costs have increased by $1.4m to $3.6m, reflecting the Group's higher net debt position across the period, itself due to the higher inventories held by PureCircle.

The Group's EBITDA loss of $1.1m reflects the low sales in during the period.

The Group's operating cash outflow of $28.0m was in line with that of H1 FY 2010 ($27.4m) and reflects the highly seasonal nature of the Group's cashflow. During the H1 each year, the Group purchases its annual leaf requirements and builds finished goods inventories to support sales for H2. After adjusting for the inventory increase of $28.6m, the Group generated positive cashflow from operations of $0.6m, an improvement of $0.8m versus H1 FY 2010.

Net debt of $77m (H1 FY 2010 $21m) reflects the Group's investment in inventories. After adjusting for the $113m of inventories, the Group is net cash positive.

The Group has gross assets of $270m (31 December 2009 $271m) and is capable of achieving profitable growth when sales volumes increase. Existing finished goods inventory and production capacity are available to service higher levels of sales.

3. SALES

H1 FY 2011 Stevia sales reflect the timing of call offs of committed volumes. After adjusting for this, the Company's H1 FY 2011 Stevia sales increased by 227% against comparable H1 FY 2010 Stevia sales. Operational indices confirm the growing sales and customer base.

In the USA, the Group serviced 67 customers H1 FY2011, against 28 in H1 FY 2010, an increase of 139%: Globally the Group is now servicing more than 135 customers.

During H1 FY 2011 the Group secured a number of new sales contracts. We continue to be prevented by confidentiality clauses from announcing customer contracts, particularly before our clients announce their own product launch and roll-out plans. However since 30 June 2010 PureCircle has won contracts to supply on a global basis two more of the world's largest ten Food and Beverage companies. The Group is now contracted supplier to seven of the world's largest ten such Companies.

PureCircle has substantially extended and deepened the existing global contract with strategic beverage GKA due to expire June 2011.

PureCircle has extended the global contract with Merisant. Under the extended contract terms, PureCircle will service all Merisant's Stevia needs and all Merisant products sweetened with Stevia will carry PureCircle's trust mark "Stevia by PureCircle".

4. TREASURY

At 31 December 2010 the Group had gross cash of $30.8m and net debt of $76.7m. Our assessment is that net debt is at its seasonal peak due to the timing of leaf purchases and major contract sales. We expect net debt to reduce steadily over the next 18 to 24 months. At the current peak net debt levels the Group has more than $50m cash and banking facility headroom. We believe this to be sufficient for our projected requirements.

Further, our inventories represent more than $150m of sales value and as sales occur would convert into that amount of cash without further investment. Our production facilities are equipped to support volumes higher than current run rates, again without major investment. Our business model will be cash generative as sales volumes increase.

5. REGULATORY & PRODUCT

Additional regulatory clearances for Stevia continue to be achieved. For example in July 2010 the USA FDA has granted PureCircle's SG95 product GRAS approval.

Indications are that Stevia will secure important new regulatory approvals before the end of Calendar 2011. In Europe proposals for Stevia approval appear to be slated for fourth quarter calendar 2011. In Asia the March 2011 CODEX meeting has cleared the principal remaining obstacles to Stevia approval in various Asia Pacific countries such as India, the Philippines and Thailand.

6. SUGAR JOINT VENTURES & OTHER PARTNERSHIPS

In October 2010 the Group's Joint Venture with Tereos was created with the launch of Tereos PureCircle Solutions SA (http://www.stevia-tereos-purecircle.com). This has made encouraging progress in both product and market development since October, including initial sample sales. Our partner Tereos has launched a retail steviasucrose product, "Ligne de Beghin Say aux extraits de stevia" , which is performing well.

In November 2010 the Group's Joint Venture with Imperial Sugar, Natural Sweet Ventures, launched Steviacane as a retail steviasucrose product for household consumption. The initial trial launch in 200 retail stores in Texas is outperforming expectations. Talks are in progress to extend the launch nationally later in 2011.

On 18 March 2011 the Group's Joint Venture with Nordzucker was launched successfully with the creation of NP Sweet AS. Based in Copenhagen, Denmark, this markets stevia and steviasucrose products across North and Eastern Europe.

Discussions continue with British Sugar Group.

In October 2010 our Dohler partnership was formed which since has been operational and working well. Globally there are number of joint projects underway for verious global, regeonal and local food and beverage companies which will further contribute to PureCircle sales and stevia market development in general.

7. CUSTOMER SERVICE & SUPPLY CHAIN

During H1 FY 2011 the Group has consolidated the progress made in scaling up its supply chain since 2007. Supply chain key performance indicators remain on track to support the mass volume natural sweetener business that we believe Stevia will develop into. Progress in H1 FY 2011 has included:

·; Initial commercial stevia leaf production from both Paraguay and Kenya

·; Adapting the Group's production facilities to enable the development of a wider range of high purity stevia products, including the new SG95.

Our customer service activities have focused on building inventories of finished goods in all major sales regions, including Latin America, China and Europe. In addition the Group has been subject to and has passed a number of major client supply chain audits.

8. QUARTERLY STEVIA MARKET UPDATE AS AT 31 DECEMBER 2010

Nielsen data shows USA retail sales of consumer products containing Stevia totalled $809m in calendar 2010 ($357m calendar 2009), an increase of 126%.

The annualized sales run rate for the quarter ended 31 December 2010 was $846m, an increase of 91% over the comparative quarter in 2009. Note that volumes in the fourth quarter are typically lower than the quarter ended 30 September, due to the seasonality of beverage sales in USA with higher sales in the summer months of Q3.

Nielsen data shows usage of Stevia widening into more food and beverage categories: 38 categories had seen launches by the end of 2010, up 30% from a year ago.

The strong growth in USA consumer usage is mirrored in other countries around the world. For example Mexico, France, Australia and China have all witnessed more launches and wider category usage than in 2009.

PureCircle estimates that the USA consumer 2010 retail sales translates into actual usage of about 130-150 tonnes. Allowing for increased usage in other countries, the Company estimates that global usage in 2010 totalled 230-250 tonnes, an increase of at least 100% compared to calendar 2009.

Euromonitor reports launches of products including stevia increased 87% in 2010. This compares to a 41% decline in launches with Saccharine and a 13% decline in launches with Aspartame.

9. OUTLOOK

FY 2011 is the first year that independent retail consumption data for Stevia has been available. The Nielsen based data shows that Stevia is a rapidly growing industry and that Stevia is developing into a broadly based mainstream ingredient in foods and beverages. PureCircle remains confident about the long term growth prospects for Stevia and for the Company. Questions do remain about the short term pace of that growth.

The Group's current sales pipeline indicates sales for FY 2011 will be in the range $50m to $60m. Thereafter we expect volume increases in FY 2012. But with major markets like Europe and India not opening until late calendar 2011, we do not expect to see the true velocity of sales on a global basis to be evident fully before Calendar 2012 and 2013. As such, we continue to anticipate a high degree of sales volatility over the next two years.

Paul Selway-Swift, Chairman

Magomet Malsagov, Chief Executive

21 March 2011

NOTES TO EDITORS

PureCircle is the global leader in the production of high purity Stevia products. PureCircle is leading the industry with the development of a sustainable, vertically integrated supply chain operating in four continents. Across these regions, PureCircle sources dry stevia leaves, undertakes extraction processes and refines the extract into sweeteners which it markets as a mainstream ingredient to Food and Beverage manufacturers worldwide. PureCircle provides a sustainable cash crop for rural farming communities in each region and works closely with these communities to maximize the social, economic, and environmental benefits of its operations. PureCircle's investment in research and development has given it a leadership position in the Stevia industry and its scientists are globally recognized experts in their field. PureCircle has pioneered the industry trust mark "Stevia PureCircle" that educates consumers about the benefits of Stevia and provides a strong base of trust for both consumers and Food & Beverage companies alike. PureCircle also funds the Global Stevia Institute (globalsteviainstitute.com) which provides a global platform for stevia education and outreach, lead by internationally recognized health professionals. PureCircle's corporate offices are located in Chicago, USA; Asuncion, Paraguay; Geneva, Switzerland; Kuala Lumpur, Malaysia; Ganzhou, China; Shanghai, China and Kericho, Kenya. PureCircle is listed on the London Stock Exchange AiM market under the ticker symbol: PURE. For more information on PureCircle visit: www.purecircle.com.

Condensed consolidated statement of comprehensive income

for the period ended 31 December 2010

Condensed consolidated statement of financial position

As at 31 December 2010

Condensed consolidated statement of changes in equity

as at 31 December 2010

Condensed Consolidated Statement of Changes in Equity

as at 31 December 2009

Note

* - Less than USD1.00

Condensed consolidated cash flow statement for the period ended 31 December 2010

Condensed consolidated cash flow statement for the period ended 31 December 2010 (continued)

Notes to interim financial statements

1. General information

The Company was incorporated and registered as a private limited company in Bermuda, under the Companies (Bermuda) Law 1991 (as amended). The Company has its primary listing on the Alternative Investment Market (AiM) operated by the London Stock Exchange plc.

The Company is engaged principally in the business of investment holding whilst the principal activities of the rest of the Group are the production, marketing and distribution of high purity stevia products.

The unaudited condensed consolidated interim financial statements have been authorised for issue by the Board of Directors on 21 March 2011.

2. Basis of preparation

The condensed consolidated interim financial statements for the six months ended 31 December 2010 have been prepared in accordance with IAS 34, "Interim financial reporting". The condensed consolidated interim financial statements should be read in conjunction with the Group's annual financial statements for the year ended 30 June 2010, which have been prepared in accordance with IFRSs.

3. Accounting policies

The following new standards and amendments to standards are mandatory for the first time for the financial year beginning 1 July 2010.

(i) Improvements to IFRS 2009 - Amendments to IFRS 5, IFRS 8, IAS 1, IAS 7, IAS 17, IAS 36 & IAS 39 (effective for annual periods beginning on or after 1 January 2010

(ii) Amendments to IFRS 2 - Group Cash-settled Share-based Payment Transactions (effective for annual periods beginning on or after 1 January 2010)

(iii) Amendments to IFRS 1 - Additional Exemptions to First-time Adopters (effective for annual periods beginning on or after 1 January 2010)

(iv) Amendment to IAS 32 - Classification of Rights Issues (effective for annual periods beginning on or after 1 February 2010)

(v) IFRIC 19 - Extinguishing Financial Liabilities with Equity Instruments (effective for annual periods beginning on or after 1 July 2010)

(vi) Amendment to IFRS 1 - Limited Exemption from Comparative IFRS 7 Disclosures for First-time Adopters (effective for annual periods beginning on or after 1 July 2010)

(vii) Improvements to IFRS 2010 - Amendments to IFRS 3 & IAS 27 (effective for annual periods beginning on or after 1 July 2010)

The adoption of the new standards and amendments to standards above did not have a material impact on the condensed consolidated interim financial statements for the six months ended 31 December 2010.

4. Other income

Other income represents a one off settlement in FY 2011 of an insurance claim made in financial year ended 2009.

5. Other expenses

Other expenses principally comprise USD1.5m plant and equipment written down following a decision to reconfigure certain of the Group's fixed assets to enable the production of an enlarged product portfolio. In addition, whilst the claim is being challenged, the Group has made a full provision of USD0.5m for a claim from a former packaging contractor.

6. Principal risks and uncertainties

The Group set out in its 2010 Annual Report and Financial Statements the principal risks and uncertainties that could impact its performance; these remain unchanged since the Annual Report was published. The Group operates a structured risk management process, which identifies and evaluates risks and uncertainties and reviews mitigation activity.

7. Seasonality

At 31 December 2010 the Group had gross cash of USD30.8m and net debt of USD76.7m. The Group expects net debt to be at its seasonal peak due to the timing of leaf purchases and contracted deliveries from a major contract and expects net debt to reduce steadily over the next 18 months. Net debt is defined as short-term and long-term borrowings less cash and bank balances. Despite current peak net debt levels the Group has more than USD50m cash and banking facilities headroom. The Directors believe the banking facilities to be sufficient for projected funding requirements.

8. Segmental information

Management determines the Group's operating segments based on the criteria used by the Chief Executive Officer (CEO) for making strategic decisions. Management considers the Group to be a single operating segment whose activities are the production, marketing and distribution of high purity natural sweeteners.

From a geographical perspective, the Group is a multinational with operations located on all continents, but managed as one unified global organization. The Group's markets and its supply chain are based in the Americas, EMEA (Europe, Middle East and Africa) and Asia Pacific.

The performance of the operating segment is based on a measure of earnings before interest, tax, depreciation and amortization (EBITDA).

Geographical information

The entity is domiciled in Bermuda. The entity's non-current assets are located in countries other than Bermuda. There is no revenue from Bermuda.

9. Property, plant and equipment and intangible assets

During the period, the Group invested USD3.6 million in property, plant and equipment.

The addition to intangible assets is in respect of capitalisation of project developments during the period.

10. Inventories

11. Biological assets

During the period under review, the Group harvested 7,985 tonnes of stevia leaves which carried fair value less estimated point-of-sales costs of USD5,646,000.

At 31 December 2010, stevia leaves comprised approximately 1,301 hectares stevia leaves plantations in China, Kenya and Paraguay.

12. Borrowings

During the period, the Group obtained a new short-term bank loan in the amount of USD15.2 million. The loan bears interest at rate of 6.37% per annum and is repayable in 1 year. The proceeds were used to meet working capital. Repayments of other bank loans amounting to USD16.4 million were made in line with previous disclosed repayment terms. Strengthened Ringgit Malaysia and Chinese Renminbi against US Dollar during the period resulted in USD4.8mil increased in opening balance of borrowing.

13. Income taxes

Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated tax liabilities incurred during the period were for the operation in Malaysia and Paraguay and amounted to USD27,000. The rest of the Group has no estimated assessable profit. An overprovision of income tax and net deferred tax assets amounted to USD157,000 and USD440,000 respectively.

The Company was granted a tax assurance certificate dated 18 August 2007 under the Exempted Undertakings Tax Protection Act 1966 pursuant to which it is exempted from any Bermuda taxes (other than local property taxes) until 28 March 2016.

The subsidiary, PureCircle Sdn Bhd (PCSB), has been granted the Bio-Nexus Status by the Malaysian Biotechnology Corporation Sdn Bhd in which PCSB is entitled to a 100% income tax exemption for a period of 10 years on its first statutory income commencing in 2009. Upon the expiry of the 10-year incentive period, PCSB will be entitled to a concessionary tax rate of 20% on income derived from qualifying activities for a further period of 10 years. As at 31 December 2010, PCSB has not utilised its tax exemption.

Another subsidiary, PureCircle (Jiangxi) Co. Ltd. (PCJX), has also been granted a 100% exemption on corporate tax from 1 January to 31 December 2008 and 50% exemption on corporate tax from 1 January 2009 to 31 December 2011. Beginning 1 January 2012, PCJX will be taxed at the normal rate of 25%.

14. Share capital, share premium and treasury shares

In accordance with the Company's Long Term Incentive Plan (LTIP) implemented for the employees, options were exercised during the period to 31 December 2010 resulted in 477,750 shares being issued (31 December 2009: 653,250). In accordance with the terms and conditions of the LTIP, majority of the options were exercised without any consideration.

15. Earnings per share

The basic earnings per share is calculated by dividing the (loss)/profit attributable to owners of the Company by the weighted average number of ordinary shares in issue (excluding the treasury shares) during the period.

The fully diluted earnings per share is calculated by dividing the (loss)/profit attributable to owners of the Company by the weighted average number of ordinary shares that would have been in issued had all the options been exercised:-

16. Dividends

No dividends were declared or paid by the Company during the interim period.

17. Contingent liabilities and capital commitments

At the end of the period, there are no material contingent liabilities which, upon becoming enforceable, may have a material impact on the financial position of the Group.

Capital commitments amounting to approximately USD436,000 is approved and contracted for, these are incurred for the purchase of land and upgrading of plant and machinery in Malaysia.

18. Events after the end of the reporting period

On 18 March 2011, the Company entered into a joint venture arrangement with Nordzucker by incorporating NP Sweet AS in Denmark with 50% shareholding equity. The principal activities of the joint venture are to develop and market a portfolio of high purity stevia products and innovative sweetening solutions combining sugar and stevia.

19. Significant related party transactions

(a) Identities of related parties:

The Group and / or the Company have related party relationships with:

(i) its subsidiaries;

(ii) the directors who are the key management personnel; and

(iii) companies in which certain directors are common directors and / or substantial shareholders.

The following transactions were carried out by the Group during the period:

(b) Related parties

(i) Transaction with key management personnel

Key management personnel receive compensation in the form of short-term employee benefits, and share-based payment awards valued at USD225,000 for the six months ended 31 December 2010 (2009: USD486,000).

(ii) As disclosed in the condensed consolidated statement of financial position, the amount due to joint venture partners represents the group's proportionate shares.

20. Changes in Composition of the Group

On 10th August 2010, a wholly owned subsidiary, PureCircle (Shanghai) Co. Ltd., was incorporated for sales and marketing of natural high intensity sweeteners.

On 5th October 2010, the Company has entered into a joint venture arrangement by incorporating Tereos PureCircle Solutions, in France with 50% shareholding equity. The principal activities of the joint venture are to develop and market a portfolio of high purity stevia products and innovative sweetening solutions combining sugar and stevia extracts. The financial year end of the joint venture is 30 September.

21. Comparative figures

(a) Certain comparatives in the condensed consolidated interim financial statements were subject to prior year adjustments that were reflected in the financial statements for the financial year ended 30 June 2010.

(b) The impact of the adjustments to the consolidated statement of comprehensive income as a result of these prior year adjustments for the six months financial period ended 31 December 2010 are as follows:

(i) Leaf development investments previously expensed have been capitalised as intangibles as they will bring future economic benefits to the Group. The credit adjustments to the retained earnings amounted to USD492,000 in financial period ended 31.12.2009.

(ii) Costs in financial period ended 31.12.2009 amounting to USD191,000 that were previously capitalised are now expensed. Certain property, plant and equipment that were not depreciated, have now been depreciated amounting to USD178,000.

(iii) Certain comparatives have been reclassified to conform with current classification and presentation of the Group financial statements.

(c) The prior year adjustments resulted in a decrease in retained earnings and non-controlling interest of USD2,720,000 and USD18,000 as at 1 July 2009.

Independent review report to PureCircle Limited

PureCircle Limited

(Incorporated in Bermuda)

Registration No.: 40431

Introduction

We have been engaged by the Company to review the condensed consolidated interim financial statements for the six months ended 31 December 2010 set out on pages 8 to 23, which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, consolidated statement of changes in equity, consolidated statement of cash flows and related notes.

Directors' responsibilities

The condensed consolidated interim financial statements are the responsibility of, and have been approved by, the directors of PureCircle Limited. The directors are responsible for preparing the condensed consolidated interim financial statements in accordance with the AIM Rules for Companies which require that the financial information must be presented and prepared in a form consistent with that which will be adopted in the Company's annual financial statements.

As disclosed in Note 3, the annual financial statements of the group are prepared in accordance with International Financial Reporting Standards. The condensed consolidated interim financial statements have been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting" ("IAS 34").

The maintenance and integrity of the PureCircle Limited website is the responsibility of the directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the condensed consolidated interim financial statements since they were initially presented on the website.

Our responsibility

Our responsibility is to express to the Company a conclusion on the condensed consolidated interim financial statements based on our review. This report, including the conclusion, has been prepared for and only for the Company for the purpose of preparing the condensed consolidated interim financial statements under IAS 34 and for no other purpose. We do not, in producing this report, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements for the six months ended on 31 December 2010 are not prepared, in all material respects, in accordance with IAS 34.

PricewaterhouseCoopers

(No. AF: 1146)

Chartered Accountants

Kuala Lumpur

Malaysia

21 March 2011