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Press Releases: Investment in Chinese Wind Power Business

15 February 2006

Not for release, publication or distribution in the United States

Tersus Energy plc completes US$2m investment in Chinese wind power business

Tersus Energy (“Tersus Energy” or “the Company”) has announced the completion of a US$2 million investment in leading Chinese wind blade manufacturer ZhongHang (Baoding) Huiteng Wind Power Equipment Co., Ltd (“HT Blade”). This follows the Company’s successful fundraising of approximately £4 million through a placing on 23 December 2005.

HT develops, manufactures and sells 600kW to 1.5MW rated wind blades and related glass reinforced plastic parts and components to domestic and international customers in China, and intends to expand sales to other selected Asian markets.

At the end of 2004 China had approximately 764MW of installed wind capacity and this increased by approximately 330MW in 2005 so that China currently has some 1.1 GW of installed windpower. The country’s target for end 2006 is 2.2 GW and by 2020 the target is 30 GW. The Board of Tersus considers HT Blade to be one of the leading domestic wind blade manufacturers in China. It was founded in 2001 as a Sino-overseas co-operative joint venture by two government controlled enterprises, China Aviation Industry Baoding Huiyang Propeller Factory, and China Aviation Industry Gas-Turbine Power (Group) Company, together with Tang Wind Energy LP (“TWELP”), a Texas limited partnership based in Dallas and in Beijing. HT Blade’s business has grown substantially since it was established and it now has a workforce of approximately 200 people. HT recorded post-tax profits in 2004 and 2005 and further growth is anticipated. HT Blade’s Board is planning to float HT Blade on a public market at an appropriate point in the future.

Tersus’ US$2m investment has been made through TWELP as a convertible loan and is conditional upon the completion of certain partnership formalities (expected to be completed in the next 10 days).TWELP was established with the single purpose of holding its interest in HT Blade. Upon conversion, Tersus will have a stake of approximately 12.1% of TWELP. As announced at the time of the December placing, Tersus has two further options to invest in TWELP/HT Blade.

Tersus expects to work with the management of TWELP and of HT Blade in its strategic development and planned initial public offering.

Tersus continues to work with a second Texas limited partnership, Tang Group Ltd, in which Tersus invested US$ 500k last September, in relation to the development and financing of Tang Groups’ wind farm and clean coal opportunities in China and the Philippines.

The Company continues to make progress in relation to the other investments referred to in the announcement of 23 December 2005 and expects to make further announcements in this regard.

Steve Levine, Tersus’ Chief Executive, commented: ‘We are delighted to have completed this investment in a high quality business involved in a key sector of the Chinese economy. Recent interest in alternative and renewable sources of energy in China has been heightened by increased growth predictions for the Chinese renewable sector and by recent legislation supporting ambitious renewable targets We believe Tersus’ Asian Renewables business is perfectly placed to build shareholder value through its participation in a variety of opportunities in this growing sector.’

Enquiries:

Tersus Energy plc
Steven Levine, Chief Executive Officer
David Wilson, Finance Director
Tel: 020 7408 5420

M Communications
Patrick d'Ancona
Nick Fox
Tel: 020 7153 1540

Notes to Editors

About Tersus Energy plc

Tersus Energy, which floated on AIM in February 2005, is building three operating businesses:

  • Tersus Energy Controls. Formed to exploit the opportunity presented by the increasing focus on energy efficiency and management of electricity consumption, Tersus Energy is focusing on mobile applications (eg. electric vehicles, Automatic Guided Vehicles, fork lifts, fuel cells, hybrids) and stationary applications (eg. building controls, energy management information). Its first investment was to acquire 100% of the business of Navitas Technologies a canadian supplier to the north American electric vehicles controls market.
  • Tersus BioEnergy. Formed to exploit the accelerating demand for alternative fuel based supplies of energy, Tersus BioEnergy is focusing on biofuels (bioethanol and biodiesel) and electricity produced from forest, agricultural, municipal and industrial waste. It intends to develop, manage and invest into a stream of projects with chosen Joint Venture partners, growing in scale over time. Its first strategic relationship is with Dynamotive Energy Systems Corporation. DynaMotive's technology economically converts biomass into a renewable, environmentally friendly fuel. DynaMotive has successfully demonstrated conversion of these residues into fuel known as BioOil.
  • Tersus Asian Renewables. Formed to exploit the demand for renewable energy in Asia, Tersus Asian Renewables is focusing on wind, biomass and clean coal, principally in China and India. It intends to acquire interests in businesses well placed to benefit from growth in asian renewable generation and to develop, manage and invest into the project streams of chosen Joint Venture partners.

Tersus Energy intends to build three independently sustainable businesses on these three platforms which it considers to be among the most attractive available in the renewable and alternative energy sector.

 
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