XL TechGroup, Inc.

GenXL investment in company

XL TechGroup, Inc.
26 March 2007


Press Release                                                      26 March 2007



                               XL TechGroup, Inc.

                       ('XL TechGroup' or 'the Company')



                         GenXL invests in first company



XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing
stream of high value new companies, is pleased to announce that its value
creation joint venture, GenXL LLC ('GenXL'), has entered into its first company
development agreement.



GenXL has taken a 45% equity stake in EnGen LLC for an undisclosed but small
sum.  A further 45% is directly owned by GEN3 Partners Inc. ('GEN3') which has
been working with and investing in EnGen since 2000.  The remaining 10% is owned
by the core team of three scientists who developed the technology.



XL TechGroup established GenXL in June 2006 as a 50/50 joint venture with GEN3
to capture the value of those prospects that do not fully meet XL TechGroup's
company building criteria but still demonstrate considerable potential worth.
Over and above XL TechGroup's core business model, GenXL will review a
significant flow of opportunities from both XL TechGroup and GEN3 in order to
generate new companies, standalone product lines and technology licensing
opportunities or an appropriate mix of these.



EnGen is exploiting a unique platform technology that has a range of potential
supercapacitor battery applications across various sectors where there are clear
unmet market needs.  For example, the transportation market requires a
cost-effective combination of the energy density of a rechargeable battery, with
the power density and cycle life of supercapacitors.  The consumer electronics
market needs to extend lithium-ion battery life, either by changing their
chemical composition or by coupling them with a supercapacitor, while
supercapacitors in industrial applications could increase a lead acid battery's
life and power reliability by working in conjunction.



EnGen is working with one of the leading companies in the global supercapacitor
sector, on developing a prototype hybrid supercapacitor for use in a range of
industrial and other areas.  The funds being invested by GenXL will enable EnGen
to complete a working dry prototype, which is anticipated to be completed by the
end of the first half of 2007.  On this basis, EnGen would expect to reach
formal agreement on a technology licensing agreement shortly thereafter.  This
agreement would be both product and geographically specific, and would give
EnGen the financial and commercial freedom to work independently or with other
partners in areas such as lithium-ion batteries and pure ultracapacitors.



The supercapacitor market in the USA was relatively small at about US$200
million in 2005, but is forecast to grow rapidly to approximately US$600 million
by 2012 (Source: Frost & Sullivan 2006).  The market for lithium-ion batteries
in the USA is much larger at about US$4.5 billion in 2005 but is growing more
steadily towards an estimated US$6.3 billion in 2011 (Source: Frost & Sullivan
2006).



John Scott, CEO of XL TechGroup, commented: 'This is the first company
development for GenXL, which was created to provide even greater value for XL
TechGroup shareholders through a steady flow of new companies, standalone
product lines and technology licensing opportunities over and above our core
business model.  GenXL has been reviewing a range of opportunities since it was
established last year, a number of which are looking very promising, and we now
look forward to a steady flow of news over the coming months.'



                                    - Ends -



For further information:
XL TechGroup Inc.
John Scott / Harold Gubnitsky                               Tel: +1 321 409 7403
[email protected]
Chris Munden, Director of Investor Relations           Tel: +44 (0) 20 7398 7720
[email protected]                                             www.xltechgroup.com


Nomura Code Securities
Richard Potts, Corporate Finance                       Tel: +44 (0) 20 7776 1200
                                                          www.codesecurities.com



XL TechGroup media enquiries:
Abchurch Communications
Heather Salmond / Gareth Mead                          Tel: +44 (0) 20 7398 7700
[email protected]                        www.abchurch-group.com



NOTES TO EDITORS



About XL TechGroup

XL TechGroup is in the business of significant value creation.  Working with
major international corporate and technology partners such as AES, Procter &
Gamble and leading universities, XL TechGroup first identifies global unmet
market needs and then targets and exploits these by the systematic creation of
successful, disruptive technology businesses.  These are built from scratch, and
are then funded and developed by XL TechGroup through to the point of a trade
sale or a stock market listing.



XL TechGroup's unique and proven methodology selects the best opportunities in
order to create one-to-two new companies annually, where each company is
expected to achieve a valuation of at least US$400 million within four years
from its creation.  While an XL TechGroup company might perform a stock market
listing at an earlier point in this four year timeframe, XL TechGroup would
retain its controlling interest and would continue to assist with the company's
development.



XL TechGroup's companies to date are: AgCert International plc (www.agcert.com),
TyraTech LLC (www.tyratech.com), DxTech LLC (www.dxtech.com), PetroAlgae LLC
(www.petroalgae.com) and QuoNova LLC.



About GenXL

XL TechGroup established GenXL LLC in June 2006 as a 50/50 joint venture with
GEN3 Partners to capture the value of those prospects that do not fully meet XL
TechGroup's company building criteria but still demonstrate considerable
potential worth.  Over and above XL TechGroup's core business model, GenXL will
review a significant flow of opportunities from both XL TechGroup and GEN3 in
order to generate new companies, standalone product lines and technology
licensing opportunities or an appropriate mix of these.



For further information, see www.xltechgroup.com



About GEN3 Partners

GEN3 Partners Inc. is a product innovation consulting firm that dramatically
improves the impact, predictability and productivity of corporate innovation
processes through a superior approach to identifying their greatest
opportunities and solving the technical barriers to achieving them.  Based in
Boston and St. Petersburg, Russia, GEN3 works with CEOs, business unit general
managers, and heads of marketing, product development, manufacturing and other
executives to dramatically improve their return on product innovation.



For more information, please visit: www.GEN3.com




                      This information is provided by RNS
            The company news service from the London Stock Exchange