Contract termination

29 Jan 2009 11:09



29 January 2009

Alecto Energy plc 

("Alecto Energy" or the "Company")

Termination of CSIRO Agreements

The Company announces that it has agreed to terminate the various agreements entered into between the Alecto Energy Group and CSIRO in relation to the commercialisation of CSIRO's hydrogen micro fuel cell technology ("PEM Technology").

As reported in the Company's interim results for the 6 months ended 30 June 2008, the ability to attract the required funding to continue to develop the PEM Technology had become extremely difficult. In light of current market conditions the Board has therefore made the decision to preserve the remaining cash in the Company and to continue to pursue alternative investment opportunities.

The termination of the CSIRO Agreements does not result in any accounting adjustments to the Company's net asset position as the investment in Oreion Energy Australia Pty Ltd and all costs relating to the PEM Technology were fully impaired as at 30 June 2008. As at 29 January 2009 the Company has cash at bank of £270,445 before taking into account the final contribution to CSIRO's R&D costs of A$140,244 (£65,567).

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