OPP.L Regulatory News (OPP)

16 March 2011

Origo Partners PLC

Follow-on Investment in Unipower Battery Ltd.

Origo Partners Plc ("Origo") is pleased to announce a follow-on investment of up to US$15 million in Unipower Battery Ltd ("Unipower" or the "Company") as part of a US$22 million convertible note offering by the Company.

Unipower was established last year by Huanyu Group ("Huanyu"), a privately-held Chinese battery group, and Origo, to serve the rapidly growing market for large polymer batteries used primarily in electric vehicles ("EV") and high capacity storage solutions. Unipower has performed strongly since Origo's initial equity investment of US$4.3 million in August 2010, with both installed capacity and the revenue run-rate of the business having more than doubled in the last six months.

Unipower presently focuses on the public bus sector in China, however the Company's current capacity is not sufficient to meet this year's indicative demand from their largest customer, let alone demand from other existing and prospective customers. Unipower estimates that less than 500 pure electric buses and 1,500 hybrid buses were produced in China in 2010, compared to the Chinese Government's target of introducing no less than 20,000 such buses onto Chinese roads by the end of 2012.

In response, the Company is planning an extensive expansion of capacity during the course of 2011. With the proceeds of the current offering, Unipower is expected to double current production capacity to 365,000 kWh per annum by August 2011. By the end of 2011, the Company intends to further increase capacity to approximately 550,000 kWh per annum (equivalent to approximately 2,500 pure electric buses). At that point, Unipower expects to be among China's largest providers of lithium-ion batteries for the domestic EV market and rank on par with its listed international peers, such as Ener1 (NASDAQ:HEV) and A123 (NASDAQ:AONE) in terms of estimated volumes of shipped kWh.*

Origo was joined in the offering by affiliates of Huanyu Group, which invested US$4 million, funds managed by China Equity International Holdings Ltd ("China Equity") and other existing shareholders who committed a further US$3 million. Under the terms of the transaction, the proceeds of the offering will be disbursed over 10 weeks. Accruing a rolled-up interest of 6 per cent per annum, the notes are convertible into equity, in part or in full, under various scenarios, including at a 20 percent discount to the price of next equity-financing round. Origo intends to subscribe for around US$7.5 million of the offering on its own account and assign the balance (US$7.5 million) to a separate clean tech fund that Origo is in the process of forming.

Commenting on the announcement, Chris Rynning, Chief Executive of Origo, said:

"We are delighted with the progress that Unipower has made since our first investment last year. We see a tremendous opportunity in this rapidly developing sector where short and long-term demand is underpinned by strong support for electric vehicles from the Chinese Government. Unipower is well positioned to capture this opportunity given its established customer base, proven product offering and strong management team. "

For further information about Origo please visit www.origoplc.com or contact:

Notes to editors:

* Based on company reports and third party analyst coverage.

Origo Partners:

Origo is an AIM-listed private equity investor and strategic consultancy business which provides its shareholders with exposure to China-linked investment opportunities.

Origo has a significant portfolio of investments in a range of industrial sectors, including metals and mining, agriculture, renewable energy/clean tech and technology, telecom and media.

Origo invests directly in high growth Chinese companies as well as in companies based around the world with significant exposure to Chinese export markets.

Huanyu Group:

 Established in 1982, Huanyu Group is based in Xinxiang, Henan, in central China. Huanyu Group provides a range of batteries and storage solutions, comprising nickel hydrogen, Nickel cadmium, and lithium batteries, including high-end lithium-ion batteries and related materials. The company's products are used in various applications including power storage, tools, e-motorbikes and electrical vehicles.

The Chinese car market:

 China overtook the U.S. in 2009 as the world's largest automotive market, with 13.6 million unit sold that year. On the back of rising consumer demand, the Chinese government has taken various steps aimed at promoting the country's automotive industry, including enacting policies aimed specifically at stimulating the nascent market for electrical vehicles.

In January 2009, the Chinese National Development and Reform Commission ("NDRC") issued a new energy car plan and set the target that half of all cars on the roads in China should be hybrid or electrical vehicles by 2020. Under the plan, China is targeting to production of 500,000 electric and hybrid cars per annum in 2011. Chinese automotive producers have been eligible for various subsidies to reduce the cost of electrical and hybrid vehicles since last year, including: US$61,000 (RMB 420,000) for hybrid passenger buses, US$ 73,000 (RMB 500,000) for electrical buses, and up to US$8,800 (RMB 60,000) for passenger cars and light commercial vehicles.