Tersus Energy Plc
4 May 2006

Tersus Energy PLC completes biomass-to-electricity investment

Tersus Energy PLC, the AiM-listed clean energy company, ('the Company' or Tersus Energy') has announced the completion of its second platform investment in the fast growing bioenergy sector.

Tersus has invested £750,000 into UK-based Enviro-Control Limited, (‘Enviro-Control’ or ‘ECL’) a UK-based world-leading animal waste-to-energy developer utilising patented anaerobic digestion technology.

Tersus Energy has a 13.7% holding in ECL having invested £375,000 at a pre-money valuation of £3,000,000 and £375,000 at a pre-money valuation of £6,000,000. Tersus also receives a 5 year option at a strike price equivalent to a £3,000,000 valuation which, if exercised, would give it a 20% shareholding in ECL.

ECL was founded in 1989 and has operating plants in the UK and in the USA. Its patented and wholly owned technology converts animal waste into biogas (and in turn electricity), high quality fertiliser, and clean water. ECL projects will also qualify for the generation of carbon credits. ECL will receive license fees from projects utilising its intellectual property, and its founders intend to float the business on a public market in 2-3 years.

The investment terms also include a commitment to establish two joint venture companies in which Tersus will have a 50% interest:

• The first company will be focused upon developing projects employing ECL technology. Tersus will be primarily responsible for power marketing (including offtake agreements and PPA's), electricity hedging, green credit sales, commercial contract structure and project financing. ECL will be primarily responsible for technology assessment, resource assessment, system design, installation, and permitting. ECL has a current pipeline of projects potentially representing $350m of capital expenditure, and both parties will work together to source and develop additional projects.
• The second company will be focused upon marketing and selling the high quality fertiliser and other by-products generated in the anaerobic digestion process.

The Board considers ECL an excellent opportunity and believes it is ideally positioned to benefit from the macro-economic drivers underpinning growth in non-fossil fuel based electricity generation and reduction in the use of increasingly scarce landfill.

Steven Levine, Chief Executive Officer, stated:

'The investment and joint venture companies with Enviro-Control are consistent with the strategy of Tersus BioEnergy, one of our three businesses, of partnering with proven bioenergy technology companies with strong current and prospective project pipelines. We are delighted to complete the investment having explained the ECL opportunity to the market in December, when we raised further funds. We are also pleased to have the opportunity to make a larger investment than was contemplated at that time due to improved transaction dynamics and expanded project opportunities.

The Enviro-Control investment and joint venture companies provide Tersus BioEnergy with a platform from which to develop, invest into and operate a significant portfolio of projects in the agricultural waste-to-electricity sector.’

The company continues to make progress in relation to its investment and operating program. An announcement, including results for the year to December 2005, is expected shortly.

Enquiries:

Tersus Energy Plc
Steven Levine, Chief Executive Officer
David Wilson, Chief Operating Officer and Finance Director
Tel: 020 7408 5420
www.tersusenergy.com

M Communications
Patrick d'Ancona
Harriet Totty
Tel: 020 7153 1540

Notes to Editors

About Tersus Energy Plc (www.tersusenergy.com)

Tersus Energy, which floated on AIM in February 2005, is building three operating businesses focused upon what it believes are the most attractive and significant areas of the renewable and alternative energy sector: Tersus Asian Renewables, Tersus BioEnergy and Tersus Energy Controls:

• Tersus Asian Renewables (TAR). Formed to exploit the demand for renewable energy in Asia, TAR is focusing on wind, biomass and clean coal, principally in China and India. It is acquiring interests in businesses well placed to benefit from growth in Asian renewable generation and developing, investing into and operating a portfolio of renewable energy assets with chosen joint venture partners.
• Tersus BioEnergy (TBE). Formed to exploit the accelerating demand for alternative fuel based supplies of energy, TBE is focusing on biofuels (bioethanol and biodiesel) and electricity produced from forest, agricultural, municipal and industrial waste. It is developing, investing into and operating a portfolio of bioenergy assets with chosen joint venture partners.
• Tersus Energy Controls (TEC). Formed to exploit the opportunity presented by the increasing focus on energy efficiency and management of electricity consumption, TEC is focused upon efficiency applications for mobile (eg. hybrid and electric vehicles, automatic guided vehicles, fork lift trucks) and stationary (eg. building controls, energy management information) end users. TEC intends to develop these opportunities through continuing organic growth and acquisition.

Tersus Energy also maintains a strategic and financial advisory service business, primarily targeting established and emerging energy companies based principally in Europe and North America.