Information  X 
Enter a valid email address

XL TechGroup, Inc. (XLT)

  Print   

Monday 05 June, 2006

XL TechGroup, Inc.

Launch of new company GenXL

XL TechGroup, Inc.
05 June 2006


Press Release                                                        5 June 2006


                               XL TechGroup, Inc.

                       ('XL TechGroup' or 'the Company')

                    XL TechGroup launches new company GenXL


XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing
stream of high value new companies, announces the launch of a new company GenXL
LLC ('GenXL'), a joint venture with GEN3 Partners, Inc. ('GEN3'), the highly
regarded US headquartered product innovation and technology development firm.

XL TechGroup identifies numerous potential opportunities throughout the year and
creates one to two new disruptive companies per year from this 'pipeline'.  In
addition, this selection process identifies many other prospects with
considerable worth which up until now have been unexploited.  Now, however, XL
TechGroup has joined with GEN3, which uses a proprietary process to match the
opportunity with the right technical solution, to create GenXL, a new value
creation entity, to ensure the value of these opportunities is captured.  This
new collaboration will provide a pathway to deliver even greater value for XL
TechGroup shareholders by taking advantage of this rich pipeline of
opportunities over and above the Company's core business model.  Moreover, GEN3
also has its own pipeline of opportunities which will be contributed to GenXL.

GEN3 is a product innovation consulting firm that dramatically improves the
impact, predictability and productivity of product innovation.  The firm
provides a superior approach to product innovation through the GEN3: Innovation
Discipline (G3:ID) and identifies the greatest opportunities and solves the
technical barriers to achieving them.  GEN3 has boosted innovation at Boston
Scientific, Alcoa, Appleton, CR Bard, Honda, Toshiba, Nippon Chemi-Con and other
leading companies around the globe.  The firm is headquartered in Boston, USA,
with additional locations in, San Francisco, USA, Tel Aviv, Israel, and St.
Petersburg and Moscow, Russia.

The significant advantage of GenXL is that it will blend the best of both parent
companies, namely their respective opportunity pipelines, XL TechGroup's
expertise and track record in identifying unmet market needs and creating new
businesses, and GEN3's proven and established track record with start ups and
their application of G3:ID.  This combination will produce a steady flow of new,
self generated businesses within the BioTech, EcoTech, MedTech and
Communications sectors that are intended to add significant value for both XL
TechGroup and GEN3 in a number of ways.  These will include new companies,
standalone product lines and technology licensing opportunities or an
appropriate mix of these.

Both XL TechGroup and GEN3 will be investing an initial US$1 million to
establish GenXL, and each company will appoint four directors to the board of
GenXL.  The Executive Chairman of GenXL will be Jim Sims, who is the CEO of GEN3
which he co-founded in 1999.  Mr Sims was the founder of Cambridge Technology
Partners ('CTP') in Cambridge, Massachusetts which he led to annual revenue of
US$620 million and a market valuation of US$2.5 billion.  Mr Sims previously
founded Concurrent Computer Corp which grew to US$340 million in annual revenue.
Mr Sims is well known to the XL TechGroup senior management team, and is a
valued member of the XL TechGroup advisory board.

In addition to their initial investments, both XL TechGroup and GEN3 Capital I,
GEN3's affiliated private equity venture arm, have agreed to provide an
additional US$1 million in funding for GenXL when needed, although it is
anticipated that GenXL will become self financing as soon as possible.
Furthermore, and very differently to the XL TechGroup business model, each new
GenXL business will be free to attract external private equity or venture
capital ('VC') funding.  In this regard, a number of established US based VC
funds have already expressed a very strong interest in investing in GenXL
businesses.

Jim Sims, Chairman and Chief Executive Officer of GEN3, said:  'This is a very
exciting new concept in value creation.  John Scott, CEO of XL TechGroup has
proven time and again that his methodology works, and we are delighted to be
creating a joint platform where we can combine our respective skills and
contacts to create companies and other opportunities that we are confident will
add significant value over time.'

John Scott, Chief Executive Officer of XL TechGroup, said:  'We are creating a
new company that will have an immediate inventory of commercial opportunities to
work with and the right combination of skills to prepare them for maximum
success.  GEN3's established track record of solving product innovation
challenges combined with the G3:ID will dramatically increase the value of
relationships already cultivated by XL TechGroup.  We are very excited about the
potential for creating even greater value for XL TechGroup shareholders.'


                                    - ends -


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

GEN3 Partners
Erin Del Llano                                              Tel: +1 781 684 0770
[email protected]                                        www.gen3partners.com


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


NOTES TO EDITORS

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.  
     www.agcert.com

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

•    TyraTech LLC, which was created by XL TechGroup in July 2004, is developing 
     a new class of insecticides utilizing all natural active ingredients.  
     TyraTech is able to quickly evaluate natural ingredient combinations by
     utilizing a patent-pending high throughput chemoreceptor screening process 
     that accurately predicts effectiveness levels.  TyraTech's development is 
     progressing rapidly in both insecticidal and related 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 patent-pending formulations in relation to 
     natural insecticide and personal care products.  www.tyratech.com

•    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 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                                                                                                                                                                                                     

a d v e r t i s e m e n t