Imagination takes a slice of Toumaz, shares soar

Toumaz, an AIM listed company which designs ultra low-power wireless systems has jumped 17% in morning trading after spinning off a new subsidiary.

Toumaz Microsystems will focus on developing integrated circuits for low power wireless communication.

Currently systems like Bluetooth are considered too power-hungry for certain types of applications, such as devices to be used inside the human body for instance.

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The real eye-opener for investors has been an agreement that FTSE 250 tech company, Imagination Technologies, will invest £5m into Toumaz Microsystems for a 25% stake.

This £5m will come in the form of licences to Imagination's hardware and software technologies, and supportive engineering resources. The investment also demonstrates the perceived value of Toumaz's work, particularly following the establishment of new standards in so called "Body Area Networks".

The technology protocols for these networks have been worked out with major players, including Texas Instruments, GE, Philips, Fujitsu and Samsung. The applications could involve devices that monitor people's vital signs and send the data wirelessly back to a health care provider.

As part of the reorganisation of Toumaz, a Health Technologies division will be created focussed solely on medical and sport applications.

Professor Chris Toumazou, Toumaz's Chief Executive, commented:

"Establishing Toumaz Microsystems is the next logical step for us, building a subsidiary for our radio IC chip development with investment and support from strategic partner, Imagination. The rest of the Group, operating now as Toumaz Health Technologies, can then be focused on the applications for our technology in the health care and leisure arena."

In the last twelve months Toumazou's stock has gained 31.5%.

BS