Re Agreement

AFC Energy Plc
02 August 2007

2 August 2007

                                 AFC Energy plc

                         MOU with Indonesian government

AFC Energy plc ('the Company') announced on 11 June 2007 that it had entered
into a Memorandum of Understanding ('M.O.U.') with the government of Indonesia
relating to the CIUP (Community Integrated Utility Program) project that aims to
provide 32 million households with the ability to produce electricity and
potable drinking water over the next 10 years.  The M.O.U. contains an initial
order totalling US$13.5 million for three thousand 3.5kW systems at US$4,500 per
system. Supplies are scheduled to begin around the fourth quarter of 2008.

The Company has not yet received the deposit of US$3.15 million which was to be
paid within 30 days of the signing of the M.O.U.  However, the Company has not
incurred any costs other than minimal legal fees in respect of this M.O.U. and
AFC Energy will not incur any further costs until the full deposit has been
received.  The Company will make a further statement about the project in due
course.

                                    - Ends -

For further information:

AFC Energy plc                                        + 44 1483 276726
Tim Yeo MP, Chairman
Gerard Sauer, Chief Executive

Nabarro Wells                                         + 44 20 7710 7400
Richard Swindells
Anthony Rowland

Madano Partnership                                    + 44 20 7593 4000
Mark Way
Graham Moonie

IR Focus                                              + 44 20 7593 4015
Neville Harris


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