VLS.L Regulatory News (VLS)

27th May 2010

OXFORD CATALYSTS GROUP PLC

("Oxford Catalysts" or "the Group")

FT Demonstration Start-up Underway in Güssing

Oxford Catalysts Group PLC, the leading technology innovator for clean synthetic fuels, is pleased to announce that following successful mechanical completion and pre-commissioning, start-up of its Fischer-Tropsch ("FT") demonstration is currently underway.

The demonstration facility is located in the town of Güssing, Austria, arguably the prime location globally for demonstrating bio-conversion technologies such as Biomass-to-Liquid ("BTL"). Güssing is unique in having a commercial scale biomass gasifier, operational since 2005, that supplies the entire energy needs of the local town. The demonstration is being operated in conjunction with SGC Energia, SGPS, S.A. ("SGCE"), who is responsible for the overall project management and demonstration plant activities, as well as the full costs. SGCE is the Group's preferred partner in the synthetic fuels market for applications involving solid feedstock such as biomass.

The FT demonstration is being brought online according to a phased start-up program. Firstly, the gas conditioning unit (supplied by SGCE) and the Group's FT demonstration unit have been fully installed and pre-commissioned. Secondly, product gas from the Güssing gasifier is being purified by the gas conditioning unit. Once the latter is commissioned, the next phase will be a coupled operation of the gas conditioning unit and a small microchannel FT device to confirm stability, followed by the final phase of integrated operation of the gas conditioning and FT demonstration units. This final stage, expected to begin in the summer, will include an evaluation of a wide range of operating conditions and an extended steady-state run of at least three months.

SGCE has already secured the host site and initiated engineering activities for its first commercial facility. Following successful demonstration at Güssing and completion of the technical milestones, SGCE intends to place its first commercial order with the Group, currently expected at the end of 2010 or early 2011.

Roy Lipski, CEO of Oxford Catalysts Group said:

"This is an exciting time for Oxford Catalysts Group as we approach validation of our technology in the field, paving the way for commercial roll out with our partner SGCE."

Vianney Vales, CEO, SGCE said:

"SGCE is pleased with the progress made together at Güssing. We've got every confidence in the Group's technology. Our primary objective for the demonstration is to define process conditions for our first commercial plant. Upon completion of the technical milestones, we intend to place a commercial order with the Group, hopefully around the end of the year."

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Notes to Editors

Oxford Catalysts designs and develops technology for the production of clean synthetic fuels from both conventional fossil fuels and renewable sources such as biowaste. The Group is primarily focused on the emerging market for distributed smaller scale production of synthetic fuels via Fischer-Tropsch ("FT") synthesis − a market that has the potential of producing as much as 25 million barrels of fuel a day.

The FT reaction is used when converting natural gas, coal or bio-mass into clean high-performance liquid synthetic fuels, processes known as GTL, CTL and BTL respectively. The Group is the recognised world leader in the design and development of high-activity catalysts and associated novel chemical reactors for the small scale production of synthetic fuels. (The Group's reactor technology − known as microchannel process technology − is marketed under the brand name of Velocys).

Oxford Catalysts Group PLC is listed on the AIM market of the London Stock Exchange (LSE: OCG). The Group has some 90 employees with facilities near Oxford, UK and Columbus, Ohio, USA.

www.oxfordcatalysts.com

www.velocys.com

About SGCE

SGC Energia, SGPS, S.A. ("SGCE") is a Portuguese incorporated holding company that acts as the investment arm of João Pereira Coutinho, a well known Portuguese entrepreneur, in the renewable energy sector. Mr Coutinho, through his holdings, is involved in the production of conventional biofuels and the development of next generation bio and synthetic fuel technologies, as well as the supply of complex integrated solutions for the production of alternative energy. Mr Coutinho's activities in the sector include the operation of a 125,000 ton/yr biodiesel production facility, the establishing of over 30,000 ha of biomass energy crops in Africa, and, with partners, the development and demonstration of gasification, syngas cleanup, and syngas-to-liquids technologies. His staff participate in the engineering and operation of facilities, as well as the business aspects of projects. SGCE is owned by João Pereira Coutinho and his SGC Group. SGC Group is active in 13 countries and has an annual turnover of over €1 billion.

About Güssing

Güssing, in South Burgenland, Austria, is a pioneering "eco-town" of around 10,000 people. It is a completely self-sufficient town in terms of energy, producing its entire heat, power and fuel requirement from local renewable materials, such as wood, sourced from within a 5 km radius. Since 2005, a power station based on gasification of wood chips has operated in the town, with an output of 4.5 MW heat and 2 MW electricity, for domestic and industrial consumers. The biomass gasifier at this facility will also be used to supply synthesis gas for conversion to fuels via the Group's Fischer-Tropsch ("FT") demonstration unit.

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