Re Agreement

EcoSecurities Group plc 15 March 2006 15 March 2006 EcoSecurities signs CDM agreement with Liuzhou EcoSecurities Group plc, one of the world's leading originators of carbon credit projects, has signed a Letter of Intent to provide Liuzhou, a major industrial city in South China, with greenhouse gas mitigation services. EcoSecurities and the government of Liuzhou City will cooperate in developing carbon reduction projects across the coal mining, cement, steel-making, landfill and chemical industries. During 2006 both parties will work together to help Liuzhou benefit from the development of Clean Development Mechanism (CDM) projects. The partnership will allow the government and local enterprises to obtain additional financial resources for CDM developments in the province, which the City believes could generate at least one billion yuan, around US$123 million over the next decade. As the world's largest developing economy, China is posed to become one of the key suppliers in the development of CDM projects. EcoSecurities developed two of the first projects approved by the Chinese CDM authorities and is currently working more than 10 projects in the country across a number of different technologies, including landfill gas, hydropower, fuel switching and energy efficiency Dr Pedro Moura Costa stated "We welcome the opportunity to work with Liuzhou city government and to help them to fulfill their potential in this enormously important area. China has the potential of being the world's most important market for supplying emission reductions. Our experiences to date working with Chinese partners in developing CDM projects has been universally positive and clearly justifies our focus on serving this important and highly competitive market. We look forward to working with the government and the companies of Liuzhou and helping them to finance more sustainable technologies." For further information please contact: EcoSecurities Rachel Mountain, Marketing Manager Tel: +44 (0) 1865 202 635 Email: rachel.mountain@ecosecurities.com Citigate Dewe Rogerson Patrick Toyne Sewell/Clare Allison Tel: +44 (0) 20 7638 9571 Editor's Notes: About EcoSecurities: EcoSecurities is a world leading originator, developer and trader of carbon credits. The company structures and guides projects through the Clean Development Mechanism (CDM) process to the point when the client receives monetary value for the carbon credits generated. Under the Kyoto protocol, which established the principle of 'Polluter pays', buyers include companies, carbon funds and governments in the so-called Annex 1 industrialised countries. EcoSecurities floated on the Alternative Investment Market of the London Stock Exchange (ECO.L) in the 13th December 2005, raising £48.5 million pounds after costs. The company has also established strategic partnerships with agricultural products and services Cargill and the American private equity firm MSM Capital Partners, which have invested in EcoSecurities during a private equity round prior to the IPO. As of the date of its IPO, the company had one of the largest carbon credit project portfolios worldwide, consisting of 121 projects which have the potential to generate up to 71.3 million CERs through to 2012. The portfolio benefits from wide diversification with projects located in 26 countries and deploying 15 technologies. EcoSecurities has negotiated transactions over Carbon Credits involving a series of buyers, including the World Bank, the International Finance Corporation, Shell, Toyota Tsusho and Essent, and is currently manages carbon facilities to source and contract Carbon Credits for the governments of Austria, Denmark and Japan. About the Clean Development Mechanism The Clean Development Mechanism (CDM) is a project based mechanism that was established under the Kyoto Protocol to the United Nations Framework Convention on Climate Change (UNFCCC). The two main objectives of this market based approach are: i) to allow Annex I countries that have specified greenhouse gas (GHG) emissions targets in Annex B to the Kyoto Protocol to acquire Certified Emission Reductions (CERs) from CDM project activities undertaken in Non-Annex I parties and count them towards their Kyoto targets and ii) to assist countries not included in Annex I to the UNFCCC in achieving sustainable development. This information is provided by RNS The company news service from the London Stock Exchange R
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