Accsys Tech Regulatory News (AXS)

15 Oct 2007 07:00

Accsys Technologies PLC15 October 2007 15th October 2007 AIM: AXS NYSE Euronext Amsterdam: AXS Accsys announces 100,000 m3 License Option Agreement in Middle East Accsys Technologies PLC ("Accsys" or "the Company") announces that its 100%owned subsidiary, Titan Wood Ltd., has signed a licence option agreement with AlRajhi Holdings W.L.L., in respect of rights to manufacture AccoyaTM in fiveMiddle East countries for a nameplate capacity of 100,000 cubic metres ofproduction of AccoyaTM wood. The terms of the license option agreement include a premium payment of €100,000and six months exclusivity for five of the six GCC (Gulf Cooperation Council)countries: Kuwait, Bahrain, Qatar, Oman and the Kingdom of Saudi Arabia (rightsfor the sixth GCC country, the UAE, are currently under contract to SkanforeLLC, as previously announced by the Company). This exclusive period will beextended on the exercise of the option. As with previous Titan Wood licenceoption agreements, terms of the licence would include licence fee payments of€200 per cubic metre of nameplate capacity (€20,000,000 in total) and €22 percubic metre of production royalties for twenty years. Willy Paterson-Brown, Executive Chairman of Accsys commented, "we areparticularly pleased to enter into a trading agreement with the Al RajhiHoldings Group, whom we welcomed as shareholders in the Company last year. Wehave learned a huge amount about the Middle East market, through thisrelationship, and realise that the potential for AccoyaTM will be exploited tothe full, with such a strong commercial partner supporting it". Yaser Alsharifi, Head of Corporate Finance at Al Rajhi Holdings Group, added, "we are delighted with the prospect of producing AccoyaTM under licence withTitan Wood in the Middle East. We are working to conclude a full licenceagreement shortly. The unparalleled durability of this product, in extremeclimatic conditions, will benefit our region, and will also help the environmentglobally. We are excited to be able to commercialize this opportunity in theKingdom of Saudi Arabia and elsewhere in the GCC region. The Al Rajhi Holdings Group currently owns approximately 5.8% of the Company'sissued ordinary share capital. ENDS For further information, please contact: Accsys Technologies PLC William Paterson-Brown, +44 (0) 20 8144 2510 Executive Chairman Collins Stewart Europe Limited Tim Mickley / Michael O'Brien +44 (0) 20 7523 8000Parkgreen Communications Justine Howarth / +44 (0) 20 7851 7480 Bex Sanders-HewettCitigate First Financial B.V. Jose Tijssen / Frank Jansen + 31 (0) 20 575 4024 Notes to Editors: Al Rajhi Group Al Rajhi Holdings W.L.L. and Al Rajhi Partners (together 'Al Rajhi') representthe business interests of Sheikh Abdulrahman Saleh Al Rajhi and his immediatefamily in Saudi Arabia. Al Rajhi has substantial interests, comprising investments in financialservices, infrastructure, telecoms, utilities, real estate; oil and gas. Keyinvestments include Bank Al Bilad, DanaGas, Saudi Telecom, and Saudi Cement.Khalid al Rajhi, CEO of Al Rajhi, is a director of each of these companies. Titan Wood Limited (www.titanwood.com) is a wholly owned subsidiary of theAccsys Technologies PLC (www.accsysplc.com) group of companies. AccsysTechnologies PLC is listed on the London Stock Exchange AiM market under thesymbol 'AXS'. Wood Acetylation is a process, which increases the amount of 'acetyl' moleculesin wood, thereby changing its physical properties. The process protects woodfrom rot by making it "inedible" to most micro-organisms and insects, without -unlike conventional treatments - making it toxic. It also greatly reduces thewood's tendency to swell and shrink, making it less prone to cracking andensuring that when painted it requires dramatically reduced maintenance. AccoyaTM wood (www.accoya.info) is produced using a patented process thateffectively converts sustainably grown softwoods and non-durable hardwoods intowhat is best described as a 'new wood species'. Distinguished by its durability,dimensional stability and, perhaps most importantly of all, its reliability (interms of consistency of both supply and quality), AccoyaTM wood is particularlysuited to exterior applications where performance and appearance are valued.Unlike most tropical and European hardwoods, its colour does not degrade whenexposed to ultraviolet light. Moreover, the AccoyaTM wood production processdoes not compromise the wood's strength or machinability. The combination of UVresistance, dimensional stability, durability and retained strength means thatAccoyaTM wood offers a wealth of new opportunities to architects, designers andspecifiers. For marine uses where weight is also important, AccoyaTM wood forthe first time provides boat builders with a wood that is strong, lightweight,durable and which retains its natural beauty for far longer. ACCOYA is a registered trademark owned by Titan Wood Limited This information is provided by RNS The company news service from the London Stock Exchange