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XL TechGroup, Inc. (XLT)


Wednesday 23 November, 2005

XL TechGroup, Inc.

AgCert receives Brazil LOAs

XL TechGroup, Inc.
23 November 2005

Press Release                                                   23 November 2005

                               XL TechGroup Inc.

                       ('XL TechGroup' or 'the Company')

                   XL TechGroup company AgCert International

           receives Eight Conditional Letters of Approval from Brazil

XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing
stream of high value new companies, announces that XL TechGroup company, AgCert
International plc ('AgCert'), has received notification from the Brazilian
Government of its issuance of eight conditional letters of approval ('LoAs') in
relation to AgCert's improved animal waste management system project at the
majority of its prompt start farms in Brazil.

These eight conditional LoAs relate to projects comprised of 155 farm sites
throughout Brazil.

These LoAs represent confirmation that Brazil, as host country, approves
AgCert's animal waste management system projects as a Clean Development
Mechanism project as defined in Article 12 of the Kyoto protocol, a requirement
for having the project registered with the CDM Executive Board.

Bill Haskell, AgCert CEO, stated, 'We are pleased with the continued regulatory
progress.  This development allows AgCert to capitalise on a vast majority of
its prompt start activities.

Dr John Scott, CEO of XL TechGroup, said:  'The issuance of these letters of
approval is a further validation of the AgCert business model and we continue to
be encouraged by the significant regulatory progress.'

                                    - Ends -

For further information:
XL TechGroup Inc.
John Scott / Harold Gubnitsky                              Tel: +1 321 409 7403
[email protected]                               

XL TechGroup media enquiries:
Abchurch Communications
Heather Salmond / Chris Munden                        Tel: +44 (0) 20 7398 7700
[email protected]             

AgCert media inquiries:
Liz Morley / Brian Hudspith                           Tel: +44 (0) 20 7379 5151


About XL TechGroup

XL TechGroup identifies unmet market needs in the Biotech, Ecotech and Medtech
sectors and then systematically creates and develops successful disruptive
technology businesses to exploit these needs.  The Company has developed a
unique proven method to rapidly bring companies from inception to liquidity,
matching unexploited IP from a group of corporate and technology partners to the
identified unmet market need.  XL TechGroup employs its own predictive algorithm
to ensure the market will rapidly adopt the identified solution and then moves
to scale the company specifically created to exploit the opportunity.

Before forming XL TechGroup, the management team created substantial value for
shareholders over a twelve year period, successfully exiting six technology
businesses at an average market valuation of approximately US$500 million.

The listing of the first company created under the XL TechGroup banner, AgCert
International, continues to validate the systematic approach to value creation.

•         AgCert International was created by XL TechGroup in May 2002 and is a
global leader in the production and sale of agriculturally derived greenhouse
gas emission reductions, with business in Europe, Asia, North America and South
America.  AgCert was listed on the London Stock Exchange in June 2005 and XL
TechGroup maintains a 27.2% interest in AgCert.

The second and third companies in the new generation of XL TechGroup businesses

•         TyraTech LLC, which was created by XL TechGroup in July 2004, is
developing a new class of highly effective, non-toxic pesticides using cloned
insect chemoreceptors, based on approved, safe, natural oils.  Its development
is progressing rapidly particularly in human healthcare applications.  TyraTech,
which is 66.7% owned by XL TechGroup, is continuing discussions with companies
in North America, Asia and Europe as well as numerous national public health
programs about the licensing and distribution rights for its patented
formulations in relation to natural insecticide and personal care products.

•         DxTech LLC was created by XL TechGroup in July 2005, and is developing
a unique micro-fluidic platform that replaces essentially all biological tests
currently performed at reference laboratories with a fully-automated,
point-of-care device.  This technology has applications in significantly
lowering costs and increasing efficiency for major pharmaceutical companies in
their clinical trials, the provision of diagnostics in developing countries and
delivering a new revenue stream for doctors in the USA.  DxTech is currently
100% owned by XL TechGroup.

XL TechGroup has a number of other opportunities already at an advanced stage in
its business creation pipeline, and expects to create one-to-two new companies
annually that can each achieve a liquidity event worth at least US$400 million
within four years from inception.

For further information, see

About AgCert

AgCert International plc is listed on the London Stock Exchange. The Group was
founded in 2002 to produce and sell reductions in greenhouse gas emissions
(referred to as 'Offsets') from agricultural sources on an industrial scale.
These Offsets are intended to satisfy the requirements of the Kyoto Protocol and
will be capable of being traded on the newly established European cap and trade
system, the European Union Emissions Trading Scheme ('EU-ETS').

The Group's methods enable it to produce Offsets through the capture and
combustion of Biogas containing greenhouse gases, primarily methane, emitted
from animal waste management systems ('AWMSs'). To achieve this, AgCert has
developed proprietary systems and processes which have been designed to be fully
scalable and adaptable to the AWMSs of large confined animal feeding operations
including those for swine, dairy and poultry.

The Group has entered into one of the largest reported forward sales contracts
relating to the supply of CERs, a form of Offset, and in total has contracted
under forward sales contracts to deliver CERs to the value of approximately €74
million to customers including Nuon, BHP Billiton and EDF. More broadly, the
Group intends to sell its Offsets to large industrial emitters, governments,
funds and energy traders.

The entry into legal force of the Kyoto Protocol on 16 February 2005, along with
the EU's voluntary early adoption of emissions reduction targets under the
EU-ETS, has created a significant demand for Offsets. The purchase of Offsets
enables greenhouse gas emitters, including countries and commercial entities
such as power generators, to ensure that their net greenhouse gas emissions
remain within specified limits in order to avoid financial penalties. In
addition, the Directors believe there will be significant speculation in
Offsets. Point Carbon forecasts that the global market for Offsets is likely to
reach €34 billion by 2010 including primary demand and secondary trading.
Estimates of the primary demand in Europe for Offsets are 60 to 70 million
Offsets per annum until 2008, rising to approximately one billion Offsets per
annum from 2008 to 2012, when considered globally.

AgCert has identified agriculture as one of the largest commercial opportunities
for Offset production and expects to be a leading supplier of Offsets from this
sector. Agriculture is responsible for around 20 per cent of the world's annual
greenhouse gas emissions. Under the Kyoto Protocol, any reductions in greenhouse
gas emissions derived from this sector qualify as CERs provided they are derived
from projects that have been validated by a DOE and Registered by the UN
Executive Board and are properly verified and certified according to the
stringent requirements laid down by the UN. AgCert's proprietary systems and
processes include one of only two UN approved large scale methodologies for the
production of Offsets in the agricultural sector. This has given the Group early
strategic advantages in capitalising upon the rapidly evolving carbon based
emission trading markets. .The Group has initiated the modification of AWMS on
528 farms in Brazil and Mexico which are expected to create Total Credit
Reserves of approximately 32 million Offsets over the life of the agreements.

The Group is currently awaiting various regulatory approvals with regard to
verification of the Offsets and their certification as CERs.

The Group's strategy is to expand rapidly its Offset production and resultant
sales capacity by commencing the modification of AWMSs on farms where it has
already entered into arrangements with farmers and by rolling out its turnkey
AWMS modification methods both geographically and across additional livestock
species beyond its current focus on swine through the entry into contracts with
additional farms.

More information about AgCert's Greenhouse Gas Reduction projects can be found

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

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