IGAS.L Regulatory News (IGAS)

22 Jun 2006 07:01

UTEK Corporation22 June 2006 FOR IMMEDIATE RELEASE 22 June 2006 UTEK CORPORATION TECHNOLOGY TRANSFER COMPLETED TO UK-BASED KWIKPOWER INTERNATIONAL PLC Transfer of NREL technology licence for low cost production of bio-diesel feedstocks London, UK, Golden, CO & Tampa, FL - UTEK Corporation (AMEX & LSE-AIM: UTK), aspecialty finance company focused on technology transfer, and KwikpowerInternational Plc, a diversified renewable energy and fuels company offering'Carbon Recycling' solutions, have completed a technology transfer in astock-for-stock transaction. The technology transferred is the licence to oil-producing micro algae developedat the U.S. Department of Energy's National Renewable Energy Laboratory (NREL).The licence is exclusive in the European Union and is non-exclusive in theUnited States. The licensed technology may provide the enhanced production ofbio-diesel feedstocks, whereby over expression of Acetyl-Coenzyme A Carboxylasein algae leads to overproduction of triglycerides. When these triglycerides aresubjected to trans-esterification, they provide the hydrocarbon feedstock forthe production of bio-diesel fuels. This technology was developed by former NRELemployee, Paul G. Roessler, Ph.D. and his NREL team. Dr. James Watkins, Chief Executive Officer and Chairman of KwikpowerInternational said, "We believe that this NREL technology will enable us torapidly expand Kwikpower's opportunities in the bio-diesel markets in the USAand Europe. We also believe that it will allow us to reduce the overall cost offeedstock utilised in bio-diesel production. We see significant, potentialgrowth opportunities in both the USA and Europe for this technology." Dr. Watkins continued, "This is the third technology transfer this quarterbetween Kwikpower and UTEK. The first two transfers were for technology toproduce bio-diesel from a distinctive variety of the green alga known asBotryococcus. The ancestors of Botryococcus are thought to be responsible formany of the world's fossil fuel deposits. Kwikpower acquired the exclusivelicence to a novel algae strain derived from a variety isolated by Dr. ArthurNonomura, while at the University of California in Berkeley. This new straingrows faster than previous wild-type algae and, when combined with methods toswitch on growth and accelerate hydrocarbon production, may provide Kwikpowerwith the ability to grow bio-diesel components at competitive prices. Theability to grow bio-derived gasoline and diesel components cost-effectivelyoffers Kwikpower the potential opportunity to help meet the growing demand forenergy with a 'Low Carbon' solution." "With this novel process, we hope to see future farms of oil-bearing algae as asustained source for bio-diesel, comparable to the way that we cultivate ourfood," said Richard Bolin, a Technology Transfer Officer at NREL. "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 of Technology Licensing for UTEK Corporation. Terms of the transaction Advanced Biofuel Technologies, Inc., a company established by UTEK Corporationspecifically for this transaction, has been acquired by Kwikpower International,plc, in a tax-free stock-for-stock exchange. Kwikpower International plc issueda £1.19 million convertible debenture to UTEK Corporation in exchange for 100%of the issued and outstanding shares of Advanced Biofuel Technologies, Inc. Thevalue of the consideration will be determined based on a valuation in accordancewith UTEK's valuation policy as of the closing date of the transaction. 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 in London, England, Melbourne, Australia, and Toronto, Canada, and has manufacturing facilities in Oldbury, Dukinfield and Portsmouth, England. Kwikpower has 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 has been listed on the AIMmarket of the London Stock Exchange since 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 the National Renewable Energy Laboratory NREL is the U.S. Department of Energy's primary national laboratory forrenewable energy and energy efficiency research and development. NREL isoperated for DOE by Midwest Research Institute and Battelle. For moreinformation about NREL, please visit its website at www.nrel.gov. About UTEK Corporation UTEK(R) is a specialty finance company focused on technology transfer. UTEKenables companies to rapidly acquire innovative technologies from universitiesand research laboratories worldwide. UTEK facilitates the identification andthen finances the acquisition of external technologies for clients in exchangefor their equity securities. This unique process is called U2B(R). In additionto its U2B(R) service, UTEK offers both large and small capitalisation companiesthe tools to search, analyse and manage university intellectual properties. UTEKhas operations in the United States, United Kingdom and Israel. For moreinformation about UTEK, please visit its website 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 NREL +1 303-275-3028Richard Bolin richard_bolin@nrel.gov 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 "expects," "should," "believes," "anticipates" or wordsof similar import. Similarly, statements that describe UTEK's or KwikpowerInternational'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, as appropriate, and the valuation of UTEK's investment portfolio,which could cause actual results to differ materially from those currentlyanticipated. Although UTEK and Kwikpower International believe the expectationsreflected in any forward-looking statements are based on reasonable assumptions,they cannot give any assurance that their expectations will be attained.Shareholders, potential investors and other readers are urged to consider thesefactors carefully in evaluating any forward-looking statements. Certain factorscould cause results and conditions to differ materially from those projected inthese forward-looking statements, and some of these factors are discussed below.These factors are not exhaustive. New factors, risks and uncertainties mayemerge from time to time that may affect the forward-looking statements madeherein. These forward-looking statements are only made as of the date of thispress release and both UTEK and Kwikpower International do not undertake anyobligation to publicly update such forward-looking statements to reflectsubsequent 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