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XL TechGroup, Inc. (XLT)


Monday 12 December, 2005

XL TechGroup, Inc.

AgCert trading update

XL TechGroup, Inc.
12 December 2005

Press Release                                                   12 December 2005

                               XL TechGroup Inc.

                       ('XL TechGroup' or 'the Company')

                   XL TechGroup company AgCert International
                      announces a pre-close trading update

XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing
stream of high value new companies, advises that XL TechGroup company, AgCert
International plc ('AgCert'), has today announced a trading update prior to its
31 December year end.  This trading update covers its operational performance in
the modification of animal waste management systems and the subsequent build up
of greenhouse gas emission reduction Offset ('Offset') inventory.

The Board of AgCert is pleased to announce that it has made substantial progress
in both its operations and regulatory approvals.  Highlights include:

• AgCert has completed 221 sites as at 9 December compared to 74 at 10
  September, representing a 300% increase.  128 sites were completed in the last
  eight weeks.

• The United Nations appointed Clean Development Mechanism ('CDM')
  Executive Board approved the registration of two of its projects in Brazil (1)
  and Mexico (1).  The formal acceptance (registration) of a validated project 
  as a CDM project activity under the Kyoto Protocol is the prerequisite for the
  subsequent verification, certification and issuance of Certified Emission
  Reductions ('CERs').

• AgCert received 24 Letters of Approval ('LOAs') for modification of
  animal waste management systems, primarily for swine but also for dairy.

Below is a summary of AgCert's operational performance with reference to its key
performance measures.

Performance measure                                10 September 2005                   9 December 2005

Arrangements for sites (Brazil,                               >1,000                            >1,300
Mexico, Chile, Argentina)
Sites in progress                                                352                               244
Build time                                            16 to 20 weeks                    12 to 15 weeks
Completions                                                       74                               221
Capital cost per CER                                           €1.20                             €1.22
CER annual production rate for                           0.4 million                       1.2 million
completed sites
Prompt start qualifying farms          471, of which, 372 farms meet     471, of which, 372 farms meet
                                                    company criteria                  company criteria
Total credit reserve (from farms          23 million tonnes CO2e (1)            25 million tonnes CO2e
PDDs submitted                                                    18                                30
PDDs registered                                                    0                                 2
Letters of approval                                       7 (Mexico)        15 (Mexico) 9 (Brazil) (2)
EUA prices                                                   € 23.83                        €21.60 (3)

(1) Credit reserve, from farms started, is lower than previously reported
    due to a new operational definition of Farm Start that does not consider 
    site pre-assessment as the commencement of construction activities.

(2) Eight Brazilian LOAs are conditional

(3) Source: PointCarbon

The Board of AgCert anticipates that its first CERs will be certified, ready for
delivery, by the end of Q1 2006.  AgCert expects to be able to produce an amount
of Offsets sufficient to meet contracted deliveries, subject to completing the
remaining final steps of regulatory approval.

AgCert has strengthened its existing operational and financial reporting
structures during the last three months to facilitate a more cohesive management
structure and information system.  The Directors of AgCert believe this has
contributed to a better operating performance.

Bill Haskell, Interim CEO, AgCert International said:  'I am very pleased with
the progress we have made over the last three months.  We have managed to
address the execution issues successfully and the results are coming through in
our key performance indicators.  We have also made significant regulatory
progress and the prospects for AgCert look increasingly positive.'

Dr John Scott, CEO of XL TechGroup, said:  'AgCert's trading update today
provides further validation of our confidence in its business.  We are delighted
with the progress being made and we are optimistic about their future prospects.
We remain committed shareholders and we look forward to a substantial increase
in the value of our holding over the longer term.'

                                    - 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 / Samantha Robbins                     Tel: +44 (0) 20 7398 7700
[email protected]              

AgCert media enquiries:
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
be capable of being traded on the newly established European cap and trade
system, the European Union Emissions Trading Scheme ('EU-ETS').

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's strategy is to expand rapidly its Offset production and resultant
sales capacity by commencing the modification of AWMS 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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