VLS.L Regulatory News (VLS)

16th August 2010

OXFORD CATALYSTS GROUP PLC

("Oxford Catalysts" or "the Group")

Güssing FT Demonstration Update

Oxford Catalysts Group PLC, the leading technology innovator for clean synthetic fuels, is pleased to announce that its Fischer-Tropsch ("FT") pilot unit is achieving good performance in phase one of the demonstration at Güssing.

The Group's preferred partner SGC Energia, SGPS, S.A. ("SGCE") is 'very pleased' with the results obtained, and on this basis has confirmed that the Group remains on track to secure a commercial order upon completion of the technical milestones.

The FT demonstration, which is being managed by SGCE, has been fully operational for a month, with the Group's FT unit working at its full capacity of more than 900 commercial-length microchannels, and with the Güssing gasifier, the gas conditioning unit and Group's FT unit all operating smoothly together. Significant achievements include:

·; Near isothermal reactor temperature profile;

·; Pressure drop as expected;

·; High quality synthetic fuel is being produced (alpha value >0.9);

·; Robust responsiveness to shutdowns and start-ups.

Operations are demonstrating the very significant process intensification potential of the Group's FT technology, as the unit is already producing over 0.75 Kg of FT liquids per litre of catalyst per hour − some 4 to 8 times greater productivity than conventional systems. Performance will improve further after the steam superheating section of the plant is debottlenecked at the next scheduled shutdown. Going forward, the demonstration will be operated over a wide range of conditions, as well as for an extended steady-state run of some three months.

Roy Lipski, CEO of Oxford Catalysts Group said:

"Successful testing of our FT demonstration is an important step closer to validation of our technology in the field, paving the way for commercial roll out with our partner SGCE."

Vianney Vales, CEO, SGCE said:

"As the managing company in charge of the Güssing demonstration, SGCE is very pleased with the initial performance. We remain on track to place a commercial order upon completion of the technical milestones, initiating worldwide commercialisation of the Group's FT technology."

- Ends -

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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 the Group's preferred partner in the synthetic fuels market for applications involving solid feedstock such as biomass. The Group's FT demonstration at Güssing is being operated in conjunction with SGCE, who is responsible for the overall project management and demonstration plant activities, as well as the full costs.

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.

SGCE has already secured the host site and initiated engineering activities for its first commercial synthetic fuels facility. Following successful demonstration at Güssing and completion of the technical milestones, SGCE intends to place its first commercial order with the Group.

About Güssing

Güssing, in South Burgenland, Austria, is arguably the prime location globally for demonstrating bio-conversion technologies such as Biomass-to-Liquid ("BTL"). It is a pioneering "eco-town" of around 10,000 people that is completely self-sufficient 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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