Full License Agreement
Accsys Technologies PLC
25 March 2008
25th March 2008
AIM: AXS
NYSE Euronext Amsterdam: AXS
Accsys Signs Full License Agreement in Middle East
Accsys Technologies PLC ('Accsys' or 'the Company') announces that its 100%
owned subsidiary, Titan Wood Ltd. ('Titan Wood'), has signed a full license
agreement with Al Rajhi Holdings W.L.L. ('Al Rajhi'), in respect of the
exclusive rights to manufacture Accoya(R) wood in all six GCC1 (Gulf Cooperation
Council) countries for an annual nameplate Accoya(R) wood production capacity of
150,000 cubic metres.
The terms of the agreement, which follow Titan Wood's standard payment terms,
provide for technology fees and annual royalties. Having already paid an option
fee of €150,000, Al Rajhi will make an immediate down payment of €2,850,000.
Additional fees will be paid subject to the timing and phasing of the
construction period, with royalty payments commencing upon commercial
production, expected to start in 2010.
Al Rajhi has exclusive rights for the region for a period of four years with
rights to increase the length of exclusivity subject to committing to increased
Accoya(R) wood production licenses.
Willy Paterson-Brown, Executive Chairman of Accsys commented, 'We are
understandably delighted to reach agreement with Al Rajhi for exclusive Accoya
(R) wood production rights throughout the Gulf countries. We will now jointly
focus on developing the market both within and beyond the region to explore the
additional potential of Accoya(R) wood'.
Yaser Alsharifi, Head of Corporate Finance at Al Rajhi Holdings W.L.L., added,
'We are extremely excited by the potential of this transaction. We are already
looking at increased volumes and additional territories as we realise the value
of the exclusive nature of our agreement with Titan Wood. Our region is ripe for
this outstanding new product, Accoya(R) wood, which for the first time will be
able to access a high quality, environmentally friendly modified wood to
penetrate a very lucrative market'.
1 Gulf Cooperation Council countries: Kuwait, Bahrain, Qatar, Oman, Kingdom of
Saudi Arabia and the United Arab Emirates.
ENDS
For further information, please contact:
Accsys Technologies PLC William Paterson-Brown, +44 (0) 20 8150 8836/
Executive Chairman +44 (0) 20 8144 2510
Collins Stewart Europe Limited Tim Mickley / Michael O'Brien +44 (0) 20 7523 8000
Parkgreen Communications Justine Howarth / +44 (0) 20 7851 7480
Bex Sanders-Hewett
Citigate First Financial B.V. Wouter van de Putte / Laurens Goverse + 31 (0) 20 575 4080
Notes to Editors:
Al Rajhi Group
Al Rajhi Holdings W.L.L. and Al Rajhi Partners (together 'Al Rajhi') represent
the business interests of Sheikh Abdulrahman Saleh Al Rajhi and his immediate
family in Saudi Arabia.
Al Rajhi has substantial interests, comprising investments in financial
services, infrastructure, telecoms, utilities, real estate; oil and gas. Key
investments include Bank Al Bilad, DanaGas, Saudi Telecom, and Saudi Cement.
Khalid al Rajhi, CEO of Al Rajhi, is a director of each of these companies.
Al Rajhi Holdings W.L.L. currently owns approximately 6.5% of the Company's
issued ordinary share capital.
Titan Wood Limited (www.titanwood.com) is a wholly owned subsidiary of the
Accsys Technologies PLC (www.accsysplc.com) group of companies. Accsys
Technologies PLC is listed on the London Stock Exchange AIM market and on
Euronext Amsterdam by NYSE Euronext, under the symbols 'AXS'.
Accoya(R) wood (www.accoya.info) is produced using a patented process that
effectively converts sustainably grown softwoods and non-durable hardwoods into
what is best described as a 'new wood species' via acetylation. Distinguished by
its durability, dimensional stability and, perhaps most importantly of all, its
reliability (in terms of consistency of both supply and quality), Accoya(R) wood
is particularly suited to exterior applications where performance and appearance
are valued. Unlike most tropical and European hardwoods, its colour does not
degrade when exposed to ultraviolet light. Moreover, the Accoya(R) wood
production process does not compromise the wood's strength or machinability. The
combination of UV resistance, dimensional stability, durability and retained
strength means that Accoya(R) wood offers a wealth of new opportunities to
architects, designers and specifiers. For marine uses where weight is also
important, Accoya(R) wood for the first time provides boat builders with a wood
that is strong, lightweight, durable and which retains its natural beauty for
far longer.
Wood Acetylation is a process, which increases the amount of 'acetyl' molecules
in wood, thereby changing its physical properties. The process protects wood
from rot by making it 'inedible' to most micro-organisms and insects, without -
unlike conventional treatments - making it toxic. It also greatly reduces the
wood's tendency to swell and shrink, making it less prone to cracking and
ensuring that when painted it requires dramatically reduced maintenance.
ACCOYA(R) and the Trimarque Device are registered trademarks owned by Titan Wood
Limited and may not be used or reproduced without written permission.
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