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XL TechGroup, Inc. (XLT)


Monday 26 November, 2007

XL TechGroup, Inc.

GenXL investment in company

XL TechGroup, Inc.
26 November 2007

Press Release                                                   26 November 2007

                               XL TechGroup, Inc.
                       ('XL TechGroup' or 'the Company')

                            GenXL invests in INSERO

XL TechGroup (AIM: XLT), the creator of world-changing companies that solve
identified, global unmet market needs, is pleased to announce that its value
creation joint venture, GenXL LLC ('GenXL'), has entered into its second company
development agreement.

GenXL has taken a 70% equity interest in Australian company INSERO Pty. Ltd. ('
INSERO') in exchange for an undisclosed capital commitment that will be used to
fund pre-clinical development and milestone achievements.  The remaining 30% is
owned by the core team of scientists who developed the technology.  INSERO was
founded in 2004 by Dr. Stephen McMahon and Dr. Anthony Rodgers in Sydney,
Australia as a specialized pharmaceutical company working on developing
implantable drug delivery systems, with an initial focus on hypertension.

High blood pressure, or hypertension, affects up to one-quarter of the adult
population in most middle and high income countries, and is the single leading
cause of premature death worldwide.  There is a range of drugs available to
treat hypertension, and the leading three drugs - Amlodipine, a calcium channel
blocker (Pfizer), and the angiotensin receptor blockers, Valsartan (Novartis)
and Losartan (Merck) - accounted for over US$12 billion of sales in 2006
(Source: MedTrack) of a total global market projected to grow from US$36 billion
in 2002 to US$50 billion by 2008 (Source: Datamonitor, 2003 'Reuters Business
Insight: Future of the Cardiovascular Market to 2008').  However, a major
problem with existing hypertension treatments is non-compliance - in essence
patients failing to keep up with their medication programmes, resulting in
treatment failure and disease progression.  Non-compliance of 50% or greater is

There have been no major new developments in hypertension treatment in the last
10 years and, although a few new drugs are now at various stages of clinical
development, none of them involve an implant.  As a result, none of them provide
a potential solution to the non-compliance associated with hypertension
treatment programmes.

INSERO is working with a US based company on a feasibility study which is
designed to evaluate INSERO's technology in conjunction with the US company's
own FDA approved implant technology.  These studies are expected to be completed
within the first quarter of 2008 and, assuming they are positive, INSERO expects
to obtain a licensing agreement covering the novel implant technology in
relation to specified compounds.

Dr. MacMahon is Principal Director of The George Institute at Royal Prince
Alfred Hospital in Sydney, and Professor of Cardiovascular Medicine at the
University of Sydney.  He is a leading international authority on blood pressure
lowering treatments and their effects on cardiovascular diseases.  He has
contributed to international guidelines on the treatment of hypertension and
regulatory policy on the labeling of antihypertensive drugs.  Dr. Rodgers is
Director of the Clinical Trials Research Unit and Professor of Epidemiology at
the University of Auckland, New Zealand.  He is also a Professorial Fellow at
The George Institute at Royal Prince Alfred Hospital in Sydney.  He is the
leading international authority on the global burden of blood pressure-related
diseases, and he has contributed widely to international health policy
concerning the prevention of common serious diseases, in particular
cardiovascular diseases.  He was principal author of the World Health
Organization's 2002 World Health Report.

John Scott, CEO of XL TechGroup, commented: 'INSERO represents an exciting
technology platform which deals directly with the biggest problem in treating
hypertension, namely the high levels of patient non-compliance.  The INSERO
solution therefore allows for improved patient results for existing treatments
as well as providing a vehicle for new patents on existing therapeutics.'

                                    - 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]                                                               

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

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


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 new companies are built
from scratch, and are then managed, developed and funded 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 realisable 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 a controlling interest and would continue to assist with
the company's development.  It is XL TechGroup's aim to deliver significant
shareholder distributions at the final exit from each company.

XL TechGroup's companies to date are:

•         AgCert International plc (LSE: AGC,
•         TyraTech Inc. (AIM: TYR,
•         DxTech LLC (
•         PetroAlgae LLC (
•         QuoNova LLC (

XL TechGroup has also established GenXL LLC as a joint venture to capture the
value of those prospects that do not fully meet XL TechGroup's US$400 million,
four year criteria but still demonstrate considerable potential worth.  Over and
above XL TechGroup's core business model, GenXL is reviewing 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

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

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