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XL TechGroup, Inc. (XLT)


Thursday 28 September, 2006

XL TechGroup, Inc.

Launch of PetroAlgae

XL TechGroup, Inc.
28 September 2006

Press Release                                                 28 September 2006

                               XL TechGroup, Inc.

                       ('XL TechGroup' or 'the Company')

                   XL TechGroup creates its fourth company, PetroAlgae

XL TechGroup, Inc. (AIM: XLT), the systematic architect and builder of an
ongoing stream of high value new companies, is pleased to announce the creation
of PetroAlgae LLC, the fourth company to reach the development stage of XL
TechGroup's proven methodology for value creation.  PetroAlgae follows AgCert
International plc, which was created by XL TechGroup in May 2002 and listed on
the London Stock Exchange in June 2005, TyraTech LLC which was created in July
2004 and has already started earning its first revenues, and DxTech LLC, which
was created in July 2005.

PetroAlgae is commercializing a proprietary, environmentally-friendly algae that
generates over two hundred times more energy per acre than traditional biofuel
crops like soybeans. Using a cost-effective, modular cultivation process that
can be massively scaled, PetroAlgae will produce renewable feed stock oils for
use in applications such as transportation fuels (e.g. biodiesel), heating oil,
and plastics.  This development places PetroAlgae in a leading position to
address an ever-increasing multi-hundred billion dollar global market need for
sustainable, affordable sources of petroleum derived products.

The algae can be grown in many areas, including those regarded as wasteland.
The algae mature within 24 hours, permitting daily harvesting, and 50% of its
weight is usable oil.  To harvest, the oil is simply pressed from the algae.
The energy density of the algae is such that, if just 2% of the cultivated land
in the US was used to grow this alga, it would produce 60 billion gallons of oil
- enough for the entire annual US demand for diesel fuel.

Other benefits provided by the algae system include carbon dioxide and sulphur
dioxide emission reductions, and water remediation.  Greenhouse gases are
absorbed by the algae during photosynthesis, offsetting emissions caused by the
burning of the derived oil.  The algae also act as a filter in natural water
systems, helping to prevent accumulation of heavy metals or other harmful
substances in water supplies.

PetroAlgae's business development plan addresses multiple markets, with the
initial thrust aimed at global commodity markets such as biodiesel, large-scale
fatty acids and bioplastics.  Target market sizes are significant with, for
example, US$150 billion spent annually in the US on transportation diesel and
home heating fuel.  Petroleum used in the manufacture of plastics in the US
amounts to an additional market of US$15 billion per year.  A second, more
disruptive part of the business development plan is aimed at smaller, but still
significant and potentially higher margin areas where there is strong demand for
more specialised, high performance oils in applications such as medicines,
cosmetics and food products.  XL TechGroup is already in discussions with a
number of global multinational strategic partners and potential end users.

John Scott, Chief Executive Officer of XL TechGroup, said:  'We are extremely
excited about the potential of PetroAlgae to transform the gigantic global
markets which currently rely on petroleum based feedstock.  The modular
production process also lends itself to the rapid scaling of this technology in
order to satisfy the significant market demand.  The formation of XL TechGroup's
fourth company further demonstrates the success of our systematic approach to
creating truly disruptive technologies.'

                                    - Ends -

For further information:
XL TechGroup, Inc.

John Scott, Chief Executive Officer                       Tel: +1 (321) 409 7403

For media enquiries:
Abchurch Communications

Heather Salmond / Gareth Mead                          Tel: +44 (0) 20 7398 7700
[email protected]              


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 plc 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 24.14% interest in AgCert.

The next 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 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 64.8% 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 common
blood 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 85.59% owned by XL TechGroup.

•                  PetroAlgae LLC is developing a proprietary
environmentally-friendly algae that generates an estimated two hundred times
more energy per acre than traditional biofuel crops such as soybean oils,
together with a process by which the technology can cost-effectively produce
renewable biofuel and petroleum in many applications such as transportation
fuels (e.g. biodiesel), heating oil, and plastics.  Created in September 2006,
PetroAlgae is currently 95% 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.

XL TechGroup has also entered into a strategic joint venture with GEN3 Partners,
Inc. to create a new company; GenXL LLC.  This value creation entity will
combine the proven methodologies and guaranteed business opportunity flows of
both companies in order to take advantage of the rich pipeline of opportunities
over and above XL TechGroup's core business model.  The collaboration will
provide a pathway to even greater value for XL TechGroup shareholders by
producing a steady flow of new, self generated businesses within the BioTech,
EcoTech, MedTech and Communications sectors.  These will include 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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