Xeros Tech Regulatory News (XSG)

20 October 2014

Xeros Technology Group plc

("Xeros" or the "Group")

FURTHER INCENTIVE PROGRAMMES FROM US UTILITY COMPANIES

Columbia Gas and National Grid join Liberty in rewarding customers who cut their energy and water consumption through the use of Xeros technology

Xeros Technology Group plc (AIM: XSG), the innovative developer of a patented polymer bead cleaning system with multiple identified commercial applications, today announces that two further utility companies in the US, Columbia Gas and National Grid, have launched energy incentive programmes available to customers who commit to reducing their energy and water consumption through the use of a Xeros Commercial Laundry System. These follow the announcement in May this year that Liberty Utilities had made the first payment under its own Xeros programme.

As evidence of the commitment to the programmes, Columbia Gas of Massachusetts, a subsidiary of NiSource Inc, has paid incentives totalling $33,000 to date to buy Xeros systems. Likewise, National Grid, an international utility company headquartered in the UK with broad distribution across the US East Coast has provided incentives totalling $24,000 to date. These particular incentives represent reductions of up to 50% of the installed cost of a Xeros machine although they vary based on the customer's business and how each utility company calculates them.

RISE Engineering, an independent utility consultant, was commissioned by these utility companies to perform a technical study on the Xeros System. This study included extensive metering of energy and water usage for the Xeros Commercial Laundry System to determine utility savings and calculate incentives. In each case, incentives offered are approved and verified by RISE and the respective utility company.

In May of this year Liberty Utilities made its first incentive payment of $28,000 for a Xeros installation in the northeast of the US.

Bill Westwater, CEO of Xeros, commented:

"We now have three big US utility companies rewarding Xeros customers for investing in our technology and we expect further utility companies to announce similar incentive programmes to achieve our ultimate goal of national coverage. Customers get Xeros' superior cleaning and efficiencies for less; utility companies are proactively addressing the very real problems of energy consumption and water scarcity in the US; and, of course, we can drive early adoption harder and wider in our key geography and market.

This is all part of our growing momentum in the commercial laundry market, particularly in the US, and I look forward to providing shareholders with further updates in due course."

For further information, please contact:

Further information on the Group can be found on the Company's website: www.xeroscleaning.com

About Xeros

Xeros has developed a patented polymer bead cleaning system with multiple identified potential commercial applications. The Group has targeted the commercial laundry market and has begun the roll-out of 25kg capacity washing machines which exclusively use Xeros' patented polymer bead cleaning system. In trials with customers, this system has been shown to achieve superior cleaning performance as well as material reductions in water, energy and chemical usages compared to conventional commercial laundry methods. The Xeros proprietary polymer bead cleaning system also reduces the carbon footprint of the entire laundry process. In addition to the commercial laundry market, the Group's polymer bead technology has a range of potential applications in other industries including domestic laundry, leather processing, garment finishing and metal cleaning. The Group is currently in various stages of development and preparation for commercialisation of other identified applications, the most advanced of which is domestic laundry.

In May 2014, the Group at the Edison Awards 2014 in San Francisco won Bronze in the Energy/Sustainability category for its virtually waterless commercial laundry system and, on the same evening, the Group was named University Spin-Out of the Year at the New Energy & Cleantech Awards 2014 in London.