Portfolio Updates

ACAL ENERGY LIMITED RECEIVES FURTHER FUNDING

3 May 2005

ACAL Energy Limited, an emerging technology company, has attracted further significant investment from the RisingStars Growth Fund, managed by Enterprise Ventures Limited, to develop a prototype for its patented fuel cell technology.

Fuel cells are environmentally friendly energy technologies that have the potential to provide power sources to replace anything from batteries for computers and mobile phones, to the engines in cars and power generators in homes. However, significant hurdles for commercialisation exist including the need to massively reduce the costs and increase the electrochemical efficiency of the fuel cell system.

ACAL Energy is addressing the key to commercialising fuel cells. ACAL's system comes from radically re-thinking the approach to these technical challenges and has the potential to reduce costs in fuel cells for micro and transport applications by removing the need for any expensive catalysts on the cathode electrode and by substantially increasing the power density achieved over the current performance. Cell's powered by ACAL technology would therefore enable cheaper and smaller cell systems to be developed; a critical step in providing more viable options for both applications

Founded in August 2004 by Dr Andrew Creeth and Amanda Lyne, ACAL Energy Limited is now focusing on developing its prototype which will enable them to demonstrate the value of the system and so drive this original technology through to commercial application.

Dr Andrew Creeth said, "Demonstration of the full potential of our technology is essential for us to create value from our invention, and this funding is critical for us to ensure that we deliver the results needed to grow our business."

Mark Wyatt, EV Investment Manager for the RisingStars Growth Fund said, "ACAL has an innovative approach, applying technology developments from outside the industry to enable previously unexploitable approaches to be taken forward. This provides the company with a solid basis from which to develop, and we are pleased to be supporting ACAL in the early stages of its growth".

The RisingStars Growth Fund, managed by Enterprise Ventures Limited, provides early stage risk finance to high growth technology companies, at the seed or start-up phase, and will also invest at the 'proof of concept' stage. Companies must demonstrate excellent commercial prospects, and are likely to receive the funding in stages against development milestones, In addition to finance, the Fund offers considerable support and guidance in assisting companies with their strategic, technical, and market development.

For further information on the RisingStars Growth Fund, please contact the Investment team at EV on 01772 270570 or via email at risingstars@enterprise-ventures.co.uk