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XL TechGroup, Inc. (XLT)

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Wednesday 31 May, 2006

XL TechGroup, Inc.

Re: AgCert JV partnership AES

XL TechGroup, Inc.
31 May 2006


                                       
Press Release                                                        31 May 2006


                               XL TechGroup, Inc.


                        ('XL TechGroup' or the Company')


         XL TechGroup company AgCert announces JV partnership with AES


XL TechGroup, Inc. (AIM: XLT), the systematic architect and builder of an
ongoing stream of high value new companies, advises that XL TechGroup company
AgCert International plc (LSE: AGC), a leader in the production and sale of
agriculturally derived greenhouse gas emission reductions, has today announced
with the AES Corporation (NYSE: AES) the formation of AES AgriVerde, a joint
venture designed to deploy AgCert's greenhouse gas emission reduction technology
in selected countries in Asia, Europe and North Africa.


Under the terms of the relevant agreements, AES will maintain a majority
interest in the joint venture and plans to invest approximately US$325 million
in the joint-venture over the next five years. By 2012, AES AgriVerde intends to
create an annual production volume of 20 million tonnes of greenhouse gas
emission reductions through the reduction of methane - a potent greenhouse gas -
emissions created by agricultural and animal farm waste.


In addition to the planned US$325 million investment in AgriVerde, AES has also
invested approximately €40 million to complete the acquisition of an approximate
ten per cent equity interest in AgCert. XL TechGroup's equity interest in AgCert
is now 24.7 per cent.


Dr John Scott, CEO of XL TechGroup, said: 'We are delighted that AgCert is
establishing this exciting partnership with one of the world's largest global
power companies. The combination of AgCert's leading technology and AES's global
network is expected to give AgriVerde significant competitive advantages. Not
only does this partnership provide a powerful validation of AgCert's proprietary
technology but it is also expected to produce strong additional revenues over
and above AgCert's original plans. This development should significantly enhance
both the size and pace of AgCert's growth prospects and value proposition.'


                                    - ends -


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


XL TechGroup media inquiries:
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 24.7% 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






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