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EUROTECH S.p.A. forms US-based subsidiary

February 28, 2008

The new subsidiary, Eurotech Inc., will be formed through the merger of Applied Data Systems and Arcom.

AMARO, ITALY--(Marketwire -) -- The Eurotech Group S.p.A. announced that Applied Data Systems and Arcom, both US-based subsidiaries, are merging to form Eurotech Inc.

Eurotech Inc. will operate as a single company, upon the public launch of the new company in April 2008 and completion of the transition in July 2008. Customers of Eurotech Inc. will benefit from an increased product offering and more resources available to work toward the success of their programs. Employees of Eurotech Inc. will grow in this new dynamic environment with open sharing of ideas and insights across locations.

The integration of Applied Data Systems and Arcom is expected to have a positive impact on the Group's short, mid and long-term profitability already in 2008, due to the implementation of operational efficiencies and economies of scale between the merged companies.

Eurotech Inc. is an important cornerstone of the integration process that Eurotech Group is currently undertaking after the intense acquisition campaign of the past two years.

Eurotech Group is aiming to create a truly integrated company able to serve customers on a global basis with a consistent product offering, innovative solutions and service quality.

About Eurotech Inc.
Eurotech Inc. creates embedded computer systems, ranging from x86 to ARM architecture systems from both Applied Data and Arcom, and is focused on providing the latest innovations in embedded systems for the US market to both OEM and enterprise customers. Packaged solutions from Eurotech include the ZyWAN cellular routing modem, the Zypad wrist-wearable computer, Passenger Counter, and the netCast video over IP systems.

As the primary sales channel for all Eurotech Group products in the US market, Eurotech Inc presents all Eurotech Group systems, including embedded computer systems, packaged systems, sensors, and high performance computers to the transportation, medical, automotive, gaming, military, industrial, and point of service industries.

Eurotech Inc, with revenues ranging at approximately 45 million dollars in 2007, employs 150 people with over 50% of the staff involved in research and development activities

About The Eurotech Group
Eurotech (ETH.MI) is a company active in the research, development, production and marketing of miniaturised computers (NanoPCs) and of computers featuring high-performance computing capability (HPCs).

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