AFC Energy Regulatory News (AFC)

24 Apr 2007 08:01

AFC Energy Plc24 April 2007 24 April 2007 AFC Energy plc ("AFC Energy" or the "Company") Admission to AIM - First Day of Dealings The Placing: •AFC Energy plc, the low cost alkaline fuel cell company, announces the completion of its admission to AIM and that trading in its ordinary shares commenced at 8.00am today. •Dawnay, Day Corporate Broking (a division of Dawnay, Day Brokers Limited), the Company's broker, has placed 13,183,034 new ordinary shares on behalf of the Company raising approximately £3 million before expenses. •The proceeds of the issue of new ordinary shares will be used to finance the working capital requirements for the development of the Company's alkaline fuel cell technology. •Nabarro Wells & Co. Limited is the nominated adviser to AFC Energy. Placing statistics: +-------------------------------------------------+----------------+ |Number of Placing Shares | 13,183,034 | +-------------------------------------------------+----------------+ |Number of Ordinary Shares in issue following the | 87,682,854 | |Placing and on Admission | | +-------------------------------------------------+----------------+ |Estimated net proceeds of the Placing received by| £2.4 million | |the Company | | +-------------------------------------------------+----------------+ |Proportion of enlarged issued Ordinary Share | 15 per cent | |capital the subject of the Placing | | +-------------------------------------------------+----------------+ |Approximate capitalisation at the Placing Price | £20.2 million | |on Admission | | +-------------------------------------------------+----------------+ |AIM Ticker Symbol | AFC | +-------------------------------------------------+----------------+ AFC Energy: •AFC Energy intends to produce clean energy without cost disadvantage •The AFC Energy fuel cell is based on proven existing technology, as used by NASA in the Apollo space missions, and by the Russian navy. •The use of precious metals has been largely eliminated and all materials are expected to have at least a 50 year security and multiple source of supply • The Company's primary route to commercialisation is to provide fuel cells to industries that produce hydrogen in large amounts as waste or by-product, such as the chlor-alkali industry • The Company has already received a contractual purchase order from Akzo Nobel under which it expects to deliver its first fuel cells to Akzo Nobel's Bitterfeld site during the first quarter of 2008. The Directors believe that the AFC Energy fuel cell will have a two year payback for purchasers • AFC Energy has improved the processes and reduced the costs and number of components required in an alkaline fuel cell • The AFC Energy fuel cell is designed to enable rapid construction and easy routine maintenance, including individual electrode replacement Gerard Sauer, Chief Executive, said: "Following the successful listing of AFC Energy and the recent signing of thepurchase order to supply fuel cells to Akzo Nobel, we will deliver our firstlow-cost fuel cell during the first quarter of 2008. "The IPO of AFC Energy will allow us to develop the electrode and system and tohelp accelerate our strategy of looking at other opportunities to locate ourfuel cells at hydrogen sources. "The Company has a sole focus on producing commercially viable fuel cells.Through the work with our existing customer we have proven that clean energy canbe produced without cost disadvantage." For further information please visit www.afcenergy.com or contact: AFC Energy plc 01483 276 726Gerard Sauer, Chief Executive Nabarro Wells & Co. Limited 020 7710 7400Richard Swindells / Anthony Rowland Dawnay, Day Corporate Broking 020 7070 5659David Banks Madano Partnership 020 7593 4000Mark Way / Graham Moonie Information on AFC Energy plc Introduction AFC Energy is engaged in the design and development of alkaline fuel cells andimproving the processes and reducing the costs and number of components requiredfor their manufacture. The Company's proprietary technology, which has been under development for oversix years, has already achieved some important milestones in its development,including the proof of concept on the operation of its electrode. AFC Energy's initial path to market has been focussed on those industriesproducing hydrogen as a waste or excess by-product. The Company signed amemorandum of understanding with Akzo Nobel in late 2006, which the Directorsbelieve provides the basis for a long-term relationship and under which AFC isreceiving deposits in respect of fuel cells to be delivered. Pursuant to the memorandum of understanding, the Company received a contractualpurchase order from Akzo Nobel in March 2007 under which the Company willdeliver its first fuel cells to Akzo Nobel's Bitterfeld site during the firstquarter of 2008. A system expansion study towards developing a 200kW system is due to becompleted by the second quarter of 2009, in collaboration with Akzo Nobelpersonnel. AFC Energy's focus is not to re-invent alkaline fuel cell technology but toreduce significantly the cost of manufacture, and therefore the payback periodto within a normal commercial timeframe, and to increase the reliability andserviceability of alkaline fuel cells through the application of costengineering, design and technology development processes. The Directors believe that a significantly shorter payback period and aguaranteed working lifetime, are essential features to enable a fuel celltechnology to compete with the cost of conventional energy generationalternatives. Alkaline fuel cell technology is an existing and well defined technology that isalready used in military and space applications. Board of Directors Tim Yeo - Non-executive Chairman (Aged 62) Tim Yeo has been Member of Parliament for South Suffolk since 1983. Prior to1997 he served as a Minister in the Conservative Government, latterly asMinister of State for the Environment. Between 1998 and 2005 he was a member ofthe Shadow Cabinet, and since 2005 he has been Chairman of the EnvironmentalAudit Committee. He is Chairman of Univent plc, a nursing home operator, and a director of ITIEnergy Limited, which supplies gasifiers. Gerard Sauer, Ing-MVT - Chief Executive Officer (Aged 61) Having been educated and trained in both Holland and Germany, Gerard establisheda prototype engineering business in the UK in 1971, working exclusively in the motor sportarena. During the latter part of the 1980s an increasing amount of design anddevelopment work involved integrating advanced drive systems and fuel cell basedintegration work. Gerard worked increasingly on development and design work in the fields of SOFC,PEM and alkaline fuel cell system integration involving cars, vans, buses, boatsand static generators. From 2001 onwards, Gerard instigated and led Eneco's ''Own Electrode Project''to establish the creation of a real world low-cost electrode and fuel cellsystem. Howard White - Business Development Director (Aged 53) Howard founded AFC Energy in January 2006 for the purpose of purchasing thealkaline fuel cell assets of Eneco Limited. He has extensive experience in theownership and management of businesses in the manufacturing, leisure andtechnology sectors. Howard's achievements of note include taking a stake in the engineering companyChristy Hunt plc, acquiring Deritend Stamping plc and taking responsibility forgroup operations before selling to Triplex Lloyd PLC. He has also beenresponsible for the reorganization (under Chapter 11 of the US Bankruptcy Code)of Solitron Devices Inc., a New York Stock Exchange listed company. He was an executive director of Stanelco plc for several years and was latterlyManaging Director. Simon Walters, ACA - Finance Director (Aged 44) Simon qualified as a chartered accountant in 1986 and joined the corporatefinance department of Stoy Hayward. In 1990, he left to join Fuller Peiser, anational property consultancy, as Finance Partner where he stayed for two yearsbefore becoming Finance Director of the privately-held Molyneux property group,whose interests included 52 per cent. of USM-listed Molyneux Estates plc. In 1997, he became Finance Director of the operating companies of Shani, afully-listed UK clothing manufacturer with operations in the UK and EasternEurope. In 1999, Simon became Finance Director of Wood Hall Securities, aprivate equity group with funds invested in a range of private high-growthbusinesses and a significant property portfolio. Simon has also been aNon-Executive Director of Bilston & Battersea Enamels plc. Simon is currentlymanaging director of FD Solutions and since 2003 has provided finance directorservices to listed and unlisted companies in various sectors. Brian Wilson - Non-executive Director (Aged 58) Rt Hon. Brian Wilson is a Privy Councillor and former UK Energy Minister who wasa Member of Parliament from 1987 to 2005. In all, he held five Ministerial posts andlatterly acted as the Prime Minister's Special Representative on Overseas Trade. Since leaving politics, hehas maintained a strong interest in the energy sector on which he writes andbroadcasts extensively, as well as holding several non-executive positions.Brian lives in Glasgow where he is a director of Celtic Football Club. Dr Michael Mangan - Non-executive Director (Aged 65) Michael has a PhD in plasma behaviour in very high current electrical dischargesfrom the University of Liverpool. He has extensive experience of electricityapplication projects for electric road vehicles gained from work at theElectricity Council, Lucas and more latterly Chloride Silent Power (CSPL), whichhe joined in 1986 as team leader for the US DOE sponsored sodium sulphur batterydevelopment programme. Michael joined the fuel cell company Zevco (later ZeTekPower plc) in 1998 as General Manager, based in Belgium and transferred to theFuel Cell Systems subsidiary of ZeTek Power plc in 2000 as technology director,responsible for the development of operational fuel cell systems and third partytraining programmes. Following the closure of ZeTek Power plc in 2001, he continued with similar workfor Eneco. Harry Epstein - Non-executive Director (Aged 46) Harry is the VP - Innovations for Havi Global Solutions, the provider ofpackaging, promotions and supply chain management globally to some of theworld's leading brand owners in the food service industry. Harry has been responsible for leading major brands into a sustainable solution,not only for packaging but sustainable architecture and energy, and has advisedand developed proposals for creating as comprehensive a carbon neutral footprintin all areas as is feasible. Harry sits on various committees associated withenvironmentally responsible solutions. Harry has over 18 years of seniormanagement experience, most of the time spent in the telecommunications andcomputer industries. History and Background AFC Energy was incorporated in January 2006 to purchase certain assets relatingto alkaline fuel cell technology and know-how from Eneco and subsequently raised£1.4 million from private investors to fund the initial working capitalrequirements of the Company and has since raised a further £1.0 million. Since the late 1990s Eneco had engaged in the integration of advanced energysystems in vehicles, which included fuel cell applications in vehicles and boatsunder the direction of AFC Energy's now CEO, Gerard Sauer, and Chief TechnicalOfficer, Otto Carlisle. From 2000 to 2002, this work was extended to include thedesign and manufacture of the core systems for the same applications,culminating in late 2002 in a programme dedicated to the design of, and themanufacturing processes required, for the production of fuel cell electrodes. Eneco adopted a dual strategy with a main team focussed on the production of aless expensive conventional three-part electrode, while at the same time a second team ofscientists and production engineers pursued a more radical step change in costengineering that resulted in the invention of a new methodology of producingboth an electrode and a fuel cell system. Despite considerable technical success, Eneco decided to concentrate on bringinghybrid power systems to market and in 2004 and 2005 it significantly reduced itsresearch and development expenditure in relation to the second part of its dualstrategy, the electrode and fuel cell system. In September 2005, Howard Whitewas introduced to Eneco and in January 2006 concluded negotiations to purchasethe know-how related to the fuel cell cost engineering from Eneco. AFC Energy's Objectives AFC Energy's principal objective is to position itself to develop and produce analkaline fuel cell system at a significantly lower cost than any other fuel cellsystem and at a commercially acceptable price point. The development history of the Company's technology outlined above, whichincludes over six years of fuel cell design and integration work, has, in theopinion of the Directors, resulted in the development of considerableproprietary know-how in respect of which five patent applications have beensubmitted covering the electrode and other features of the system andmanufacturing processes. It is intended that a number of other patents will beprepared in due course to protect various innovative aspects that are beingdeveloped. The Company's technical strategy is to develop the electrodes into a fullhigh-volume production product. The chosen power density is set at 100mA percm2. The entire work package associated with this strategy is focussed on lowwaste and high quality in volume production, using automotive OEM design anddevelopment principles. The Directors believe that AFC Energy is well placed to achieve the principalobjective described above and the Company has already achieved a number ofcritical steps towards the goal of designing and developing an affordable andcommercialisable fuel cell technology as follows: (i) The invention and development of an electrode that is capable of beingproduced at a very low cost when compared to other fuel cell electrodes. Conventional electrodes for use in alkaline fuel cells typically cost in excessof $1,400/kW to produce. It is estimated by the Directors that AFC Energy's electrode - anode and cathode combined - will cost less than $100/kW to produce at a production rate of 1,000kW per annum. The AFC Energy electrode has been operated under half cell conditions in excessof 3,000 hours without significant degradation in performance. In addition, theCompany has operated both anode and cathode separately and in full-cellconfiguration. All of these tests have been carried out using transient andconstant load conditions and a number under working temperature conditions. Tovalidate and verify independently the work carried out in the Company'slaboratory, certain of Surrey University's facilities and personnel are employedto run parallel tests. (ii) The design of a simpler, significantly lower cost alkaline fuel cell systemwith a new concept in balance of plant design, eliminating the 'stack' and including an integrated electrode ensemble, that substantially reduces the number of components. The Directors believe that this will enable rapid construction, easy routine maintenance, including individual electrode replacement, and much reduced balance of plant. (iii) The establishment of a team of scientists and engineers in laboratory andoffice premises in Dunsfold Park, near Guildford, Surrey. A collaboration agreement has been signed with Surrey University and there are currently two students working to validate and verify the Company's results. (iv) Establishment of a milestone-based programme towards further refinement ofthe electrode and production of the first prototype 3.5kW fully functionalsystem followed by a 50kW system. (v) The Company signed a memorandum of understanding with Akzo Nobel, which theDirectors believe provides the basis for a long-term relationship and requiresthe payment of deposits in respect of fuel cells to be delivered. Pursuant tothe memorandum of understanding, the Company has received a contractual purchaseorder from Akzo Nobel under which the Company will deliver its first fuel cellsto Akzo Nobel's Bitterfeld site during the first quarter of 2008. AFC Energy has developed technologies that use non-precious metals as their corecomponent and has so far filed five patent applications to protect its IP,concerning the design of the electrode and the new low cost alkaline fuel cellsystem and is preparing further patent applications. The Company will also seekto improve the robustness of its IP claims as the patent applications progresstowards grant. The System AFC Energy's approach to the design of its complete system is to reduce costsfurther. By utilising production engineering processes in existence and developed by theteam together with the novel processes for which patents have been filed, AFCEnergy aims to produce an alkaline fuel cell system at a fraction of the cost ofother systems. Professor Keith Scott of Knowledge House of The University of Newcastle uponTyne states that ''The components of the AFC Energy cell stack are produced byknown low cost manufacturing routes: electro-less deposition, evaporation,electroplating and spraying. 'However, what can be said about the AFC Energy technology, is that with thecost savings of the AFC cell stack the system costs should be less than $100/kWand meet many of the targets for residential and light commercial markets.' In addition, the Directors believe that the ability to replace individualelectrodes at minimal cost will provide a new dimension to the life of alkalinefuel cell systems. The dramatic decrease in estimated costs is anticipated to result not only froma far less expensive replaceable electrode but also from: • a substantially reduced number of components in the system ('balance of plant') •designing the stack and system in such a way that uses materials that no longer have to cope with high temperatures or pressurised environments •operation of the electrodes in parallel using bi-polar cell arrangement rather than in series, thereby allowing individual electrodes rather than the whole stack (as in conventional systems) to be replaced •eliminating the need for a nitrogen pacification system in order to shut the system down •minimal abrading of the catalyst as a result of the dry-side electrode noted above •the unique water management system noted below •the depression-based pressure differentiation system explained below AFC Energy is targeting to produce a 3.5 kW system at a cost of below £2,000($4,000), based upon a production rate of 1,000 kW per annum. Five patents havebeen applied for in relation to the system, including: (i) Unique water management All hydrogen fuel cells produce water as a by-product of the electrochemicalreaction. This is unavoidable, but what one does with the water greatly influences thereliability and continuous operation of the system and the life and efficiency of the electrodes. Through the unique properties of AFC Energy's electrode, the water produced atthe active surface is drawn into the liquid electrolyte. By regulating the boiloff rate in the air stream, in conjunction with the water production rate intothe electrolyte, it is possible over a large range of operating conditions tohave a water neutral balance in the system. The electrolyte is kept at its peakconcentration throughout a wide operating range and the balance of plantrequirements to maintain water balance are reduced. (ii) Depression-based pressure differentiation In order to circulate the electrolyte, a pump is normally used in an alkalinefuel cell system. In the AFC Energy system this pump has been replaced with a vacuum and circulatingcombined unit. This allows the pressure differential between the compartments to be set at the required values without resorting to additional pumps and valves to achieve this. This saves not only several components in the system but also greatly reduces the energy required to create pressure differential and gas supplies to the cell units. In addition, the depression-based system uses less auxiliary energy, and reduces the possibility of leaks, hence improving safety. (iii) Replaceable electrode design One significant aspect of the new fuel cell technologies is that of stack andelectrode life expectancy. In the recent past this has meant that the cells mustbe capable of producing power for at least 20,000 hours to be a useful, costeffective appliance. AFC Energy's approach has been to invent a new systemconfiguration that combines the electrodes, stack and system into one singleassembly but allows for individual electrodes to be replaced without replacingthe entire stack. The low cost of AFC Energy's electrodes is anticipated to contribute to anintermediate solution to life expectancy problems since the replacement costs are so low that it should not materially alter the running costs of the system over a period of around two or three years. Technological Milestones to Date The following milestones have been achieved over the past three years: (i) Designed and developed a new substrate material for the use in alkaline fuel cells (ii) Radically reduced the number of parts needed to operate a fuel cell (the balance of plant) (iii) Changed the whole concept of the stack and system design into a single all-encompassing unit (iv) Tested and verified the half-cell design of the new electrode to over 3,000 hours (v) Designed a new control system for electrode optimisation (vi) Eliminated the need for a nitrogen pacification system (vii) Designed a new voltage monitoring system AFC Energy's Proposed Technological ''Milestones'' The six new milestones that the Company is aiming to achieve, and to haveindependently verified by the team at Surrey University, are as follows: (i) Small-scale single cell 500 hours operation May 2007 (ii) First scaled single cell operation August 2007 (iii) Scaled single cell 500 hours operation October 2007 (iv) First prototype system operation January 2008 (v) System operation 500 hours February 2008 (vi) Delivery of multiple systems to customer August 2008 Business Model and Relationships AFC Energy envisages that it will eventually license its technology to thirdparties worldwide after it has progressed the Akzo Nobel relationship. This maybe through licenses to produce the bare electrodes or complete alkaline fuelcell systems. Akzo Nobel agreement In late 2006 the Company concluded a memorandum of understanding with AkzoNobel. Under the terms of the agreement, Akzo Nobel will test AFC Energy'slow-cost hydrogen fuel cell technology at its Bitterfeld site in Germany togenerate clean energy from the substantial quantity of hydrogen that iscurrently produced as a by-product at chlorine production plants. Pursuant to the memorandum of understanding, the Company has received acontractual purchase order from Akzo Nobel under which the Company will deliverits first fuel cells to Akzo Nobel's Bitterfeld site during the first quarter of2008. A system expansion study towards developing a 200kW system is due to becompleted by the second quarter of 2009, in collaboration with Akzo Nobelpersonnel. The Directors believe that the amounts of available waste hydrogen in the globalchlor-alkali industry could support approximately 3,000 MW per annum ofgenerating capacity, representing a potential market of approximately £1billion. Knut Schwalenberg, General Manager Chlor-Alkali of Akzo Nobel stated: ''TheChlor-Alkali industry is energy intensive, so improving energy efficiency is atop priority to keep the processes sustainable. Huge amounts of hydrogen areproduced in the electrolysis process as by-product of chlorine and caustic lye. "The immediate conversion of this hydrogen into electricity, based on locallyinstalled fuel cells, and the use of this electricity back in the electrolysisprocess would create an ideal loop. Akzo Nobel regards the technology of AFCEnergy as promising and we are looking forward to the results of thecooperation.'' The Directors also anticipate that AFC Energy may enter into joint venturesinternationally to develop further and manufacture electrodes and systems aswell as to achieve market penetration and after sales support. The supply ofreplacement electrodes is likely to become a significant source of revenue. Other applications In addition, there are numerous other potential applications for AFC Energy'ssystems, which include: (i) Domestic and light industrial power supply A 3.5 kW system would provide sufficient electricity to supply the needs of anaverage three bedroom house. Such a domestic unit would be approximately the same size as a typical white goods appliance such as a dishwasher, tumble drier or washing machine. Larger systems, of up to 50 kW, are envisaged to supply electricity to clusters of houses, offices, industrial or retail units. (ii) Marine Alkaline fuel cells are unique in that they are the only fuel cells that cangenerate efficiently in saltwater environments. This makes them particularly well suited for use in marine applications such as auxiliary generators on yachts where quiet, clean operation would be a considerable advantage over diesel generators. (iii) Quiet generation AFC Energy envisages significant demand from consumers such as hospitals andfilm producers for quiet electricity generation. (iv) Zero emission generation In addition to the environmental benefits of the zero emission generation ofelectricity there is anticipated to be a requirement and demand from hospitals, mines and other industries for zero emission generation. (v) Remote locations Alkaline fuel cells are ideally suited to provide electricity in remotelocations with either permanent or mobile generators. Of particular interest is their application in low temperature zones because the electrolyte allows for a quick start up in low temperatures as the freezing point of KOH is well below zero. At 6.6 Molar the freezing point of KOH is estimated to be 34 degrees C below zero. In other types of fuel cell the water produced in the system could freeze, thereby stopping catalytic action at the active surface and ultimately causing electrode damage. (vi) Emergency/back-up supply Alkaline fuel cells are also ideally suited to provide emergency or back-uppower supplies for applications such as telephone exchanges and mobile phone masts. Their rapid start-up capability, ability to run for indefinite periods, lack of bulk compared to conventional battery back-up and long service life make them especially attractive. (vii) Military operations The low heat profile of alkaline fuel cells, coupled with zero emissions andquiet operation, make them particularly suitable for stealth operations. Alkaline fuel cells are best suited to applications that require constant powersupply, rather than applications such as motor vehicles which require variable supply. The Directors believe that the design and development of AFC Energy fuel cells will follow a logical path, as follows: €3.5 kW fuel cell - to form the basis for both industrial and domestic applications €50 kW fuel cell - will form the basis for mini-grid and industrial applications All aspects of the Company's commercial strategy specifically exclude potentialfinancial benefits such as any governmental grants or subsidies, carbon creditsor Renewable Obligation Certificates (ROCs). Intellectual Property The Company has made the following patent applications in respect of its novelelectrode and cost engineered fuel cell system. Ref Number Status Filed Descriptive Title GB 06 08440.4 Application 27 April 2006 Microprocessor control PCT/GB2007/050104 Application 6 March 2007 Hydrophilic electrode PCT/GB2007/050105 Application 7 March 2007 Negative pressure PCT/GB2007/050106 Application 7 March 2007 Releasable electrodes PCT/GB2007/050117 Application 9 March 2007 Master/slaves control Search reports have been received from the UK Patent Office in respect of all ofthe applications and the Company has obtained a patentability search and reviewfrom an independent patent agent, IP Solutions, in respect of all five patentapplications. Reasons for the Placing and Use of Proceeds The Company is seeking admission to AIM in order to access a broader investorbase and to provide access to equity capital markets. The proceeds of the Placing will be used to finance the working capitalrequirements for the development of the company's alkaline fuel cell technologyand to fund the Company's admission to AIM as detailed below: +-------------------------------------------+------------+|Use of proceeds |£ million |+-------------------------------------------+------------+|Electrode manufacturing development | 0.84 |+-------------------------------------------+------------+|System manufacturing development | 1.13 |+-------------------------------------------+------------+|Commercialisation | 0.10 |+-------------------------------------------+------------+|Working Capital & Corporate costs | 0.36 |+-------------------------------------------+------------+|Admission costs | 0.60 |+-------------------------------------------+------------+| Total | 3.03 |+-------------------------------------------+------------+ - Ends - Nabarro Wells & Co. Limited ("Nabarro Wells") and Dawnay, Day Corporate Broking("Dawnay, Day") are each authorised and regulated by the Financial ServicesAuthority and are each acting exclusively for the Company and no-one else inconnection with the Placing and Admission. Neither Nabarro Wells nor Dawnay, Daywill regard any other person (whether or not a recipient of this document) asits customer or be responsible to any other person for providing the protectionsafforded to their customers nor for providing advice in relation to thetransactions and arrangements detailed in this document. Nabarro Wells'responsibilities as the Company's nominated adviser under the AIM Rules are owedsolely to the London Stock Exchange and are not owed to the Company or to anyDirector or to any other person in respect of his decision to acquire shares inthe Company in reliance on any part of this document. Neither Nabarro Wells norDawnay, Day is making any representation or warranty, express or implied, as tothe contents of this document. The Company has issued an Admission Document in connection with the admission ofits ordinary shares to trading on AIM. Copies of the Admission Document areavailable free of charge to the public on any weekday during normal office hours(Saturdays, Sundays and public holidays excepted) at the offices of NabarroWells, at Saddlers House, Gutter Lane, London EC2V 6BR and at the offices ofEversheds LLP, Solicitors, 85 Queen Victoria Street, London EC4V 4JL until atleast one month from the date of this announcement. This announcement does not constitute, or form part of, the placing or any offeror invitation to sell or issue, or any solicitation of any offer to subscribefor any ordinary shares in any jurisdiction, nor shall this announcement or anypart of it, or the fact of its distribution, form the basis of, or be reliedupon in connection with, or act as an inducement to enter into, any contract orcommitment whatsoever with respect to the placing or otherwise. No reliance maybe placed for any purpose whatsoever on the information contained in thisannouncement or on its completeness. This information is provided by RNS The company news service from the London Stock Exchange