06 December 2007

Update on flat board development

The Company is pleased to announce the grant of a flat board production licence (arising from an existing development licence) to Environmental Polymer Technologies Limited ("EPT") and its subsidiary operations at Bedwas near Caerphilly in South Wales. In particular this licence facilitates the production in South Wales of a new board developed by EPT for building site hoardings and construction purposes containing a high proportion of recycled rubber material and clinical waste. Under the terms of the agreement, the Company will receive a royalty on the production of the board.

Separately the company is pleased to announce that it has granted a production licence to 2K Manufacturing Limited ("2K") for the manufacture of eco board. This is the recycled plastic board developed with partners, including Bovis Lend Lease, which has won four environmental awards to date including most recently the Building Magazine's Sustainability 2007 Award for Innovative Technology. 2K is the preferred manufacturer for the board and has established strong links with distributors and end users in the construction industry. 2K has an aggressive plan for several production plants in the United Kingdom and mainland Europe. The licence deal is worth £2 million in licence fees and minimum royalties (over a period of five years). Production is expected to commence in late 2008.

In consideration of these developments, the Company has reached an amicable agreement with Express Recycling for the termination of its agreement for a licence to manufacture.

Niall MacKay, the Chief Executive Officer of the Company, said:

"It is an exciting development that we now have not one but two quite different recycled boards developed using the PIM Process. The market for sheet material in the construction industry is substantial and there is potential for other products manufactured using PIM in the range. We are confident that our partners at 2K Manufacturing and EPT will be able to take these products successfully to market."

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6 December 2007