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XL TechGroup, Inc. (XLT)


Tuesday 20 September, 2005

XL TechGroup, Inc.

New strategic relationship

XL TechGroup, Inc.
20 September 2005

Press Release                                                  20 September 2005

                               XL TechGroup, Inc.

                                ('XL TechGroup')

               XLTechGroup and AES broaden strategic relationship

XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing
stream of high value new companies, announces the creation of a strategic
relationship with a new discovery partner, The AES Corporation (NYSE:AES), one
of the world's leading power companies.

The strategies of both XL TechGroup and AES are driven by innovation and the
companies have developed a two-pronged approach to generate new business
opportunities.  The first initiative is a distribution channel joint venture,
leveraging the strong relationships that AES has established in the countries in
which it operates, in particular in Asia, Eastern Europe and Latin America.  The
joint venture will leverage the 27 country platforms of AES to identify and
source tangible business leads which will be used by XL TechGroup and its
portfolio companies to accelerate revenue generation, increase value at
liquidity, and shorten time to a liquidity event.  The venture will be jointly
owned by AES and XL TechGroup.

The second initiative is a company co-development agreement which builds on the
existing discovery partnership between AES and XL TechGroup to identify unmet
market needs across the energy sector, with an emphasis on opportunities in the
renewable energy field.  Working together on opportunities identified and funded
by AES and with solutions created to meet these opportunities through XL
TechGroup's innovative value creation model, AES and XL TechGroup will jointly
own the new companies created.  In keeping with XL TechGroup's underlying
strategy, it will retain a majority interest in each of the companies it

XL TechGroup currently has a number of eco-tech renewable energy opportunities
in its pipeline that are applicable to this new strategic relationship, which
are being evaluated for their ability to generate renewable energy on a
large-scale and cost-effective basis.

'This relationship is a great opportunity for XL TechGroup and AES to bring
leading-edge technologies to new parts of the world,' said William Luraschi,
AES's Executive Vice President, Business Development.  'We are excited about the
opportunity to evaluate new technologies for the energy industry, particularly
in the renewables sector.'

John Scott, Chief Executive Officer of XL TechGroup, said:  'This relationship
provides the funding and distribution platform to accelerate the adoption of
cleaner, more efficient energy generation in developing countries.  AES is
incredibly well-placed to introduce us to potential customers and partners in a
number of countries and is an ideal partner with which to investigate eco-tech

'Strong, mutually-beneficial relationships with our partners are central to the
XL TechGroup methodology and we are continually looking at options to extend and
develop these relationships to produce new leads and identify growth
opportunities for the companies we have created.  The initiatives we are
pursuing with AES follow the announcement of a formal agreement with Procter &
Gamble and further demonstrate our role as an engine for growth within large,
multinational corporations.'

                                    - ends -

For further information:

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

XL TechGroup media inquiries:
Abchurch Communications
Heather Salmond / Samantha Robbins                     Tel: +44 (0) 20 7398 7700
[email protected]             

Robin Pence                                                 Tel: +1 703 682 6552
[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 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 on 8th June 2005 with
an initial market cap of approximately £215 million.  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 and TyraTech, which is 66.7% owned by XL TechGroup, is
expected to be earning its first revenues by the end of 2005.

•  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 several other opportunities already at an advanced stage in its
business creation pipeline.

For further information, see

About AES

AES is a leading global power company, with 2004 revenues of $9.5 billion.  AES
operates in 27 countries, generating 44,000 megawatts of electricity through 124
power facilities and delivers electricity through 15 distribution companies.
Our 30,000 people are committed to operational excellence and meeting the
world's growing power needs.  To learn more about AES, please visit
or contact media relations at [email protected]

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

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