Biofuels Update

12 January 2010

Pursuit Dynamics PLC (AIM: PDX)

("PDX" or the "Company')

Biofuels update

PDX is pleased to announce today an update on the overall performance of its Ethanol Reactor System ("ERS") designed specifically for the corn ethanol market.

Results at PDX's installation at Pacific Ethanol's Columbia Plant near Boardman Oregon, USA, continue to confirm the stability, quality and viability of the ERS system, with no errors or stoppages and with all sub-systems working to design specification. The analysis of the results allows us to confirm the previously forecast cost savings and yield improvements. Phase one of the ERS's commercial roll out is therefore progressing to plan and the Company expects the plant at Boardman to be in full production by February 2011. The second and third installations at MABE and Marquis are on schedule to go into their operational verification shortly, with the remaining four plants expected to enter operational verification over the course of the year.

The experience of running the ERS at Boardman has enabled PDX to identify and offer a new intermediate solution to biofuels customers called Cycle Time. PDX's offerings now consist of:

·; Optimization mode enabling customers to produce the same volume of ethanol at much lower costs by enhancing the yield and lowering the overall production costs;

·; Cycle Time mode enabling customers to run more cycles per year, thereby enhancing the total volume of ethanol produced; and

·; Performance mode enabling customers to process more corn per cycle and therefore increase the volume of ethanol produced.

These three solutions are sequential with PDX expecting many of its customers to start with the Optimization solution, before moving to Cycle Time and then Performance, as individual plant modifications allow. PDX's ability to offer this additional mode of operation to the biofuels market enables it to increase the range of plant conditions within which major economic improvements can be delivered to customers.

PDX estimates that unit revenue for the Optimization solution will be in the region of US $2 cents per gallon and the Company estimates that for the Cycle Time solution it will be in the region of US $4 cents per gallon. The estimated revenue for the Performance solution is expected to be higher than for the other two solutions. These unit revenues are expected to vary slightly from plant to plant depending upon plant-specific factors and will be captured in definitive agreements following individual plant operational verifications.

Commenting on the announcement, Roel Pieper, CEO of PDX, said:

"The strong performance to date of our Ethanol Reactor System and our ability to offer a third commercial solution to the market allows us to raise our expectations of the number of biofuel plants that will sign up this year. We enter 2011 with continued vigour and confidence in our market-leading solutions and look forward to announcing positive and exciting commercial developments as they materialise".

Andrew Quinn, Chairman of PDX, commented:

"PDX continues to take great strides towards providing a suite of technical solutions that will make a material contribution to the profitability of the global biofuels industry, which is facing intense cost pressures. Roel and his hard-working team deserve full credit for this success. Today's announcement demonstrates the Board's confidence that the Company will show strong growth in the current financial year."

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Notes to Editors

About PDX

- PDX (AIM: PDX) owns and commercialises the PDX Atomiser and Reactor technologies that enable significant reductions in energy usage, process acceleration and result enhancement for a wide range of industrial processes and applications.

- The PDX business model is currently organised into six Lines of Business - Biofuels; Brewing, Food and Beverages; Public Health and Decontamination; Industrial Licensing; Water and New Ventures.

- PDX is headquartered in Huntingdon (UK) with an office in London (UK), Schaffhausen (Switzerland) and Connecticut (USA).

- Further information is available at the Company's website: www.pdx.biz 

- Publication quality photographs are available from FD.