IGAS.L Regulatory News (IGAS)

25 May 2006 07:01

UTEK Corporation25 May 2006 FOR IMMEDIATE RELEASE 25 May 2006 UTEK CORPORATION TWO TECHNOLOGY TRANSFERS COMPLETED TO UK-BASED KWIKPOWER INTERNATIONAL PLC Transfers include licences to a unique organism that produces bio-derivedtransport fuel hydrocarbons and for the production of high yields of bio-derived hydrocarbons from algal varieties LONDON, ENGLAND, BERKELEY, CA & PLANT CITY, FL - UTEK Corporation (AMEX &LSE-AIM: UTK), a specialty finance company focused on technology transfer, andKwikpower International plc., a diversified renewable energy and fuels companyoffering "Low Carbon Solutions", announced today that Kwikpower Internationalhave completed two technology transfers in stock-for-stock transactions. Bothtechnology transfers relate to bio-derived hydrocarbon fuels. First technology transfer The first technology transferred includes the exclusive licence from theUniversity of California in Berkeley to a plant patent which describes adistinctive variety of the green alga known as Botryococcus that is unique inthe quality and quantity of the liquid hydrocarbons it produces. The ancestorsof Botryococcus are thought to be responsible for many of the world's fossilfuel deposits. Kwikpower International will use these green colonies for the production ofbio-derived liquid hydrocarbons, which are potential substitutes for petroleumin the synthesis of many liquid fuels and petrochemicals. The ability to grow bio-derived gasoline and diesel components inexpensivelyoffers Kwikpower a unique opportunity to meet demands for energy security whileproviding a "Low Carbon Solution" to the world's ever increasing demand forfossil fuel derived energy. Second technology transfer The second technology transferred is an exclusive licence to a patent pendingmethod developed by Plenty Energy, Inc. for the production of bio-derivedhydrocarbon chains in novel algae. This new strain was derived from a varietyisolated by Dr. Arthur Nonomura, while at the University of California inBerkeley. This new strain grows faster than previous wild-type algae and, whencombined with methods to switch on growth and accelerate hydrocarbon production,this technology may allow bio-fuel production at costs much lower than currentlypossible. "This variety of Botryococcus has been shown to produce high levels oflong-chain hydrocarbons that could be processed and utilised as gasoline anddiesel," said Dr. Arthur Nonomura, inventor of the technology while at theUniversity of California, Berkeley and founder of Plenty Energy, Inc. He added:"We are enthusiastic about the prospect of reducing the burning of fossil fuelsand look forward to working with Kwikpower to be able to grow renewable suppliesof fuel and hope to be able to implement a commercially viable developmentprogram of the algal strain." Dr. Jim Watkins, Chief Executive Officer of Kwikpower International commented:"A major focus of Kwikpower since it was founded ten years ago has been theproduction of bio-fuels and the reduction of GHG CO2 emissions. This new algalstrain will provide Kwikpower with the ability to grow bio-derived gasoline anddiesel components at prices that could be as low as US$ 25-35 per barrel.Compared to the current crude oil prices of US$ 65-70 per barrel, this offersKwikpower a unique opportunity to produce bio-derived feedstocks at competitiveprices. We believe this new strain will not only help to meet demands for energysecurity but will provide a "Low Carbon Solution" to the world's ever increasingdemand for fossil fuel derived energy." "UTEK is pleased to consummate this technology transfer with KwikpowerInternational and we look forward to continuing our efforts to identifyadditional technology acquisition opportunities for its consideration," saidJoel Edelson, Vice President Technology Licensing for UTEK Corporation. Terms of the transactions In the first transaction, Hydrocarbon Synthesis Technologies, Inc., a companyestablished by UTEK specifically for this transaction, has been acquired byKwikpower International plc in a tax-free stock-for-stock exchange. KwikpowerInternational plc issued a £1.29 million convertible debenture to UTEKCorporation in exchange for 100% of the issued and outstanding shares ofHydrocarbon Synthesis Technologies, Inc. Hydrocarbon Synthesis Technologies,Inc. holds the exclusive licence to a plant patent which claims a distinctivestrain of the green algae, Botryococcus that is unique in the quality andquantity of the liquid hydrocarbons it produces. In the second transaction, Advanced Bioenergy Technologies, Inc., a companyestablished by UTEK specifically for this transaction, has been acquired byKwikpower International plc in a tax-free stock-for-stock exchange. KwikpowerInternational plc issued a £1.21 million convertible debenture to UTEKCorporation in exchange for 100% of the issued and outstanding shares ofAdvanced Bioenergy Technologies, Inc. Advanced BioEnergy Technologies, Inc.holds an exclusive licence to a patent pending method developed at PlentyEnergy, Inc. for the production of hydrocarbon chains in a mutant strain ofalgae. The new strain derived from an algae isolated by Dr. Arthur Nonomura,while at the University of California in Berkeley, grows faster than theoriginal, wild-type algae. The values of the consideration for both transactions will be determined basedon a valuation in accordance with UTEK's valuation policy as of the closing dateof the transaction. About the University California Berkeley Office of Intellectual Property The University of California Berkeley's Office of Intellectual Property andIndustry Research Alliances (IPIRA) was created in 2004 to provide a "one-stopshop" for industry research partners to interact with the campus. IPIRA'smission is to establish and maintain multifaceted relationships with privatecompanies, and thereby enhance the research enterprise of the Berkeley campus.These relationships include sponsored research collaborations, and intellectualproperty commercialisation. For more information about the Office ofIntellectual Property and Industry Research Alliances, please visit its websiteat www.ipira.berkeley.edu. About Plenty Energy, Inc. The focus of Plenty Energy, Inc. is on the use of microorganisms to growgasoline components. By driving the costs of producing a barrel of petroleumdown, we believe that bio-derived gasoline components can now be grown at acompetitive price. When gasoline is produced by microorganisms, it can becontinuously supplied and will consume thirty-six molecules of carbon dioxidesin order to make a single molecule of fuel. Some fossil fuel deposits originatedfrom microscopic fossils that grew gasoline for millions of years. The firstliving fossil that produced large quantities of gasoline-type oils wasdiscovered 26 years ago by Dr. Arthur Nonomura during the first gas crunch andhas been verified by scientists worldwide to contain up to half of its weight inoil. Dr. Nonomura founded Plenty Energy, Inc. based on his ability to growgasoline, aviation and diesel fuels from the original source. We believe thatPlenty Energy, Inc. owns the only commercial means of using microorganisms togrow gasoline-type hydrocarbons known to humanity. About Kwikpower International plc. Kwikpower International plc is a diversified renewable energy and fuels companyoffering "Low Carbon Solutions" through its Engineering Division (KP Wellman)and its Renewables Division, which includes its renewable energy subsidiary, KPRenewables plc (LSE-AIM: KPR). The Kwikpower group is headquartered in Gibraltar with representative offices inLondon, England, Melbourne, Australia, and Toronto, Canada, and hasmanufacturing facilities in Oldbury, Dukinfield and Portsmouth, England. It had a turnover of US$ 75 million in 2005 (on an annualised basis), and approximately 300 personnel. Kwikpower's Engineering Division (KP Wellman) has over 100 years of expertise inthe design and manufacture of boilers, furnaces, heat exchangers and gasclean-up/recycling equipment. KP Renewables plc was established by Kwikpower to be the leading independentrenewable energy company in the UK. KP Renewables plc was listed on the AIMmarket of the London Stock Exchange in July 2005 under the symbol KPR and isalso quoted on the Frankfurt, Munich and Berlin Stock Exchanges under the symbolK1P. For more information about Kwikpower International plc, please visit its websiteat www.kwikpower.com. For more information about KP Wellman, please visit itswebsite at www.wellman-thermal.com. For more information about KP Renewablesplc, please visit its website at www.kprenewables.com About UTEK Corporation UTEK(R) is a specialty finance company focused on technology transfer. UTEKenables companies of all sizes to acquire innovative technologies fromuniversities and research laboratories worldwide. UTEK facilitates theidentification and then finances the acquisition and transfer of externaltechnologies for clients in exchange for their equity securities. This uniqueprocess is called U2B(R). In addition to its U2B(R) service, UTEK offers bothlarge and small capitalisation companies the tools to search, analyse and manageuniversity intellectual properties. UTEK has operations in the United States,United Kingdom and Israel. For more information about UTEK, please visit itswebsite at www.utekcorp.com. CONTACTS: Kwikpower International plc +44 (0)208-899-6140Dr. James Watkins, CEO drjwatkins@kwikpower.comBernie Rolfe, Chief Operations bernierolfe@kwikpower.comOfficer, Biofuels UTEK CorporationUSA:Tania Bernier +1 813-754-4330 x223 Consulting for Strategic Growth 1Stan Wunderlich +1 800-625-2236 UK: Bankside +44 20-7367-8888Steve Liebmann or Simon Bloomfield Forward-Looking Statements Certain matters discussed in this press release are "forward-lookingstatements." These forward-looking statements can generally be identified assuch because the context of the statement will include words, such as UTEK orKwikpower International plc "expects," "should," "believes," "anticipates" orwords of similar import. Similarly, statements that describe UTEK's or KwikpowerInternational plc's future plans, objectives or goals are also forward-lookingstatements. Such forward-looking statements are subject to certain risks anduncertainties, including the financial performance of UTEK or KwikpowerInternational plc, as appropriate, and the valuation of UTEK's investmentportfolio, which could cause actual results to differ materially from thosecurrently anticipated. Although UTEK and Kwikpower International plc believe theexpectations reflected in any forward-looking statements are based on reasonableassumptions, they cannot give any assurance that their expectations will beattained. Shareholders, potential investors and other readers are urged toconsider these factors carefully in evaluating any forward-looking statements.Certain factors could cause results and conditions to differ materially fromthose projected in these forward-looking statements, and some of these factorsare discussed below. These factors are not exhaustive. New factors, risks anduncertainties may emerge from time to time that may affect the forward-lookingstatements made herein. These forward-looking statements are only made as of thedate of this press release and both UTEK and Kwikpower International plc do notundertake any obligation to publicly update such forward-looking statements toreflect subsequent events or circumstances. UTEK's operating results could fluctuate significantly due to a number offactors. These factors include the small number of transactions that arecompleted each quarter, the value of individual transactions, the timing of therecognition and the magnitude of unrealised gains and losses, UTEK's dependenceon the performance of companies in its portfolio, the possibility that advancesin technology could render the technologies it has transferred obsolete, theloss of technology licenses by companies in its portfolio, the degree to whichit encounters competition in its markets, the volatility of the stock market andthe volatility of the valuations of the companies it has invested in as itrelates to its realised and unrealised gains and losses, the concentration ofinvestments in a small number of companies, as well as other general economicconditions. As a result of these and other factors, current results may not beindicative of UTEK's future performance. For more information on UTEK and for amore complete discussion of the risks pertaining to an investment in UTEK,please refer to UTEK's filings with the Securities and Exchange Commission. This information is provided by RNS The company news service from the London Stock Exchange