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XL TechGroup, Inc. (XLT)


Thursday 29 June, 2006

XL TechGroup, Inc.

Technology option agreement

XL TechGroup, Inc.
29 June 2006                                                   

Press Release                                                      29 June 2006

                               XL TechGroup, Inc.

                       ('XL TechGroup' or 'the Company')

XL TechGroup in option for a renewable replacement for petroleum based products

XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing
stream of high value new companies, announces that it has entered into a
licensing option agreement with Arizona Science and Technology Enterprises ('
AZTe'), the technology commercialisation arm of Arizona State University.  This
agreement is in relation to a unique algae and a scalable process by which the
technology can cost-effectively produce renewable biofuel and other products.

This ground-breaking environmentally-friendly technology platform addresses a
number of billion dollar markets.  The algae has an estimated yield that is two
hundred times greater than traditional biofuel crops such as soybean plants.
Because of its high energy content, oil extracted from the cultivated algae has
the potential to replace petroleum in many areas such as transportation fuel,
plastics and personal care products such as soap and nutraceuticals.  The market
for diesel vehicle fuel in the US alone amounts to in excess of US$180 billion
(Source: BioDiesel Board (2005)) while the detergent market is close to US$4
billion worldwide (Source: Frost & Sullivan: Global Fatty Acids Market (2005)).

Energy produced by this algae is carbon neutral in that is has zero impact on
global carbon dioxide levels as greenhouse gasses are absorbed during its growth
phase to offset any emissions.  This technology platform enables any carbon
dioxide emission, such as from industrial flues, to be captured as valuable
algae derived oil.  A further significant characteristic of the algae is its
potential to bio-remediate human and agricultural waste water streams.  These
water sources can be used as an alternative food source for the algae which
filter and clean the natural water systems thereby preventing other devastating
algal blooms and a build up of heavy metals.

Peter Slate, CEO of AZTe, said: 'Given XL TechGroup's strong track record in
developing truly disruptive ecotech companies, we are delighted to be working
with the Company on this exciting project.  We anticipate a rapid development
phase should the commercial validation process be as positive as we expect.'

John Scott, CEO of XL TechGroup, said: 'We believe this offers enormous
valuation potential for XL TechGroup from a venture that offers a clean,
renewable energy source at a price that is competitive with fossil fuels without
the need for subsidy assistance.  Our plan is now to complete our validation of
the scalability and cost effectiveness of this disruptive technology and apply
our proven business development methodology.'

                                    - Ends -

For further information:
XL TechGroup Inc.
John Scott / Harold Gubnitsky                             Tel: +1 (321) 409 7403
[email protected]                                
Arizona Technology Enterprises
Charlie Lewis                                             Tel: +1 (480) 965 8059
[email protected]                                           

XL TechGroup 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 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.

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 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.

•    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 88% 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

About Arizona Technology Enterprises

Arizona Technology Enterprises is the technology venturing company for Arizona
State University. AzTE works with university inventors and industry to transform
scientific discoveries into products and services. AzTE transfers technologies
invented at ASU to the private sector by mining university research, prosecuting
patents, negotiating licenses, and creating new technology-based ventures.

According to the Chronicle of Higher Education, AzTE ranked in the top ten in
the USA in the following categories:

  • number of inventions disclosed per US$1 million spending on research
  • number of start-up companies formed per US$10 million spending on research
  • number of US patent applications filed per US$1 million spending on

For further information see

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

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