ALLGREEN ENERGY TO LAUNCH 10 BIOMASS BASED RENEWABLE ENERGY PROJECTS IN INDIA Ties up with GE Energy, IISc for technology;

Ties up with ITC for biomass procurement

Bangalore: AllGreen Energy India Pvt Ltd, a 100% subsidiary of AllGreen Energy Pte Ltd, Singapore will launch 10 biomass based renewable energy projects in the country in the coming 2 -3 years, out of which the first 3 will be in Karnataka, Tamil Nadu and Madhya Pradesh. AllGreen Energy plans to break ground on the first three projects in the last quarter of 2009. Announcing this at a press conference here today, the companys Chairman & CEO, Mr Kamlesh Tejwani said, Each biomass power plant will produce 6.5 MW and the total output of all the plants in the first 2-3 years will be 65 MW. The power plants are to be set up in close proximity to the biomass resource as well as to the state grid through which the electricity generated will be sold. Mr Tejwani added, AllGreen Energys business model is to set up projects on Build, Own, Operate basis. However, in order to achieve these goals, AllGreen believes it is critical to align best in class companies across the biomass energy value chain to work alongside it, as success breeds success. We feel proud and honoured to be able to announce that GE Energy and ITC Ltd., have become our strategic partners in realizing our vision. These partnerships are also a testimony to the potential this business has and the foresight and desire these companies have in helping to build an environmentally sustainable, socially inclusive, and economically viable business such as AllGreen Energys. The goal is: A cleaner, brighter future, he said. Earlier, during the signing up of the MOU between AllGreen & GE Energy, Mr. Kishore Jayaraman CEO of GE Energy for India, Bangladesh and Sri Lanka region said GE sees India as an exciting growth opportunity in the renewable energy segment. With Indias increasing demand for power, exploring alternative energy resources such as biomass is critical to meeting this demand. By working with AllGreen to bring GEs Jenbacher technology to the region, we hope to encourage others to consider developing renewable energy projects in India. We are impressed with AllGreens approach of developing a business model of integrating biomass supply chain operations with power generation. (Please see Exhibit - 1 for more details on the partnership) For biomass procurement, AllGreen Energy has entered into an MOU with ITCs Agri Business Division. The MoU with ITCs Agri Business Division envisages the development

of power plants by AllGreen Energy in areas where ITC has a strong foothold in supply chain activities through its e-Choupal network, plantation development and related activities.

According to the Power Ministry, electricity generated from renewable sources in India currently stands at about 13,200 MW out of a total electricity generation of 147,400 MW. Of this, the electricity generation using biomass resources stands at 650 MW against a potential of 16,000 MW. This gives a fair idea of the untapped potential in the biomass sector, noted Mr Tejwani. The key to unlocking the market is to have a workable and integrated biomass strategy.

AllGreen Energy is adopting the resource efficient Biomass Integrated Gasification Combined Cycle (BIGCC) Technology. The BIGCC technology will include Biomass Gasification technology developed and patented by the Indian Institute of Science integrated with the world renowned gas engines from GE Jenbacher customized for wood gas application. (See exhibits 2 for details) Unlike a Rankine cycle power plant, where biomass is burnt in a boiler and the steam generated is used to turn a steam turbine generator for power generation, the BIGCC converts solid biomass by controlled pyrolysis into a combustible gas, which forms the fuel for a gas engine to generate electricity in the Open Cycle., explained M r . D i n e s h J K a g a t h i , C O O at AllGreen Energy. Under this technology, the conversion of biomass to electricity is higher compared to conventional processes. The use of customised engines from GE will enable exhaust heat capture for conversion to steam to drive a steam turbine generator in a bottoming cycle. BIGCC technology produces 30% more electricity than traditional combustion processes, and the chilled water by vapour absorption from the process can be used for a Cold Storage Facility, added Dinesh. While in thermal power plants the by-product is ash, Biomass Gasification produces charcoal which can be activated to make activated carbon which is used for purification purposes in industries such as water treatment and pharmaceuticals. Another notable feature is the quantum of water consumed in the power plant. BIGCC technology consumes only a fraction of the water consumed by conventional combustion projects. This is because the biomass gasification process itself generates water as a byproduct whereas combustion processes consume water to dissipate the unused energy.

Besides its superior technology, AllGreen Energy will also adopt a holistic approach in handling the entire biomass chain, starting from biomass production to sourcing. This will

range from professional harvesting facilities for the farmers, through to, post harvesting services such as drying, and shell-breaking as in copra production in return for the rights over the biomass generated, explains Dinesh J. Kagathi, COO, AllGreen Energy. A symbiotic relationship is cultivated with primary producers, which is a win-win strategy for all the stake holders. A part of the electricity generated will be supplied to the local area from where the biomass is sourced, thus improving the lives and economies of the local communities where AllGreen Energys plants will be built. As previously mentioned, for biomass procurement, AllGreen Energy has entered into an MOU with ITCs Agri Business Division. ITCs e-Choupal has played a transformational role in empowering millions of farmers in rural India. This innovative digital and physical infrastructure, pioneered by ITC, has created an effective two-way channel to and from dispersed rural communities, thereby enhancing productivity, improving connectivity and raising farm-based income. AllGreen Energy also believes that ITC's expertise in social and farm forestry, nurtured through intensive R&D programmes, will help in developing robust biomass plantations for power generation. Earlier, while signing the MOU with AllGreen, S Sivakumar, Divisional Chief Executive, ITC Agri Business Division said, This partnership will leverage ITCs close association with rural communities and holds the promise of enhancing farm productivity through better availability of power, generated through clean renewable biomass energy resources. Being a socially conscious corporate, AllGreen Energy proposes to set aside a percentage of profits to develop the local community and local economy in which we will operate added Mr. Anil Lala, Director-Corporate Development, AllGreen Energy. This will be set up through a separate Foundation, which will also seek local and international donors to assist it with these CSR projects.

Apart from the above commercial benefits, the technology offers several environmental benefits too. Firstly, the technology is carbon neutral since only the carbon absorbed during photosynthesis is released back to atmosphere. Secondly, due to the efficient thermochemical conversion in the biomass gasification process, there are no particulate emissions into the atmosphere. (See exhibit 3 for details)

AllGreen Energy will be investing about Rs. 550 Cr to build these 10 facilities over the next 2 3 years. Although the levelised cost of electricity generated by these facilities will be about Rs. 3.50/kWh; AllGreen expects to sell its electricity as a Merchant Power Plant utilizing the open access provision of Indian Electiricity Act and realize revenues upwards of Rs. 4.50/kWh.

AllGreen Energy India Pvt. Ltd., is organised for the purpose of developing, owning and operating a portfolio of renewable energy assets in India that utilise resources in a sustainable and environmentally friendly manner, creating wealth in a socially inclusive way and thereby making a positive impact on the lives of the people it touches. AllGreens management brings to the table more than 100 man years of experience in renewable energy, capital markets and entrepreneurship. More information can be found at: www.allgreenenergy.net

Mr. Anil Lala Director, AllGreen Energy India Pvt. Ltd., Theme House, 15, Krishna Nagar Industrial Area, Off Hosur Main Road, Bangalore 560 029 Phone: +91-80-42929292 Fax: +91-80-41309714 Email: alala@allgreenenergy.net Ms. Mythili G. Nirvan, PrachaR Media Solutions Pvt Ltd, No. 405, A3, Yamuna Bloc, 4th Floor, National Games Complex, Koramangala, Bangalore 560 047 Phone: +91-80-25704207 Fax: +91-80-4146 7169 Email: mythili@prachar.co.in

Bangalore, India - AllGreen Energy (AllGreen), has entered into a Strategic Project Development Agreement with GE Energy to develop biomass power plants in India, which AllGreen will build, own and operate. AllGreens business strategy is to combine leading technologies with a holistic biomass to energy supply chain that would ensure biomass security at competitive prices for the power plants. Accordingly, the biomass power projects will be based on highly efficient Biomass Integrated Gasification Combined Cycle (BIGCC) technology which can produce 30% more electricity as compared to a standard combustion based biomass power plant for the same quantity of biomass. The projects will incorporate the proven and patented Biomass Gasification Technology developed by Indian Institute of Science in combination with GE Energys Jenbacher gas engine technology. Since the late 1970s, GEs Jenbacher gas engine division, based in Jenbach, Austria, has been a leader in developing technology to utilize specialty gases. Among the broad variety of special gas applications, GE has also customized its gas engines for on site power generation with producer gas from biomass gasifiers. By utilizing renewable resources in combination with gas engine technology the operator benefits from significantly higher efficiency levels. Additionally, the application of biomass power supports waste disposal in a cost-effective fashion, while reducing greenhouse gas emissions. AllGreen will set up 6.5 MW Integrated Green Energy Facilities using biomass resources at multiple locations throughout India. Apart from electricity, the facilities will be producing activated carbon as a bi-product and will include a cold storage facility that would be operated using the waste heat from gas engines. GE sees India as an exciting growth opportunity in the renewable energy segment. With Indias increasing demand for power, exploring alternative energy resources such as biomass is critical to meeting this demand. By working with AllGreen to bring GEs Jenbacher technology to the region, we hope to encourage others to consider developing renewable energy projects in India. said Kishore Jayaraman, CEO of GE Energy for India, Bangladesh and Sri Lanka region. We are impressed with AllGreens approach of developing a business model of integrating biomass supply chain operations with power generation. In keeping with our philosophy of aligning ourselves with the leading companies, AllGreen is delighted to work with GE and its Jenbacher gas engine products said Mr. Kamlesh Tejwani,

AllGreen Energy (AllGreen), will be adopting the proven and patented Biomass Gasification process from Indian Institute of Science (IISc) for its Biomass based power projects In India. AllGreens business strategy is to combine the best of class technologies with a holistic biomass to energy supply chain that would ensure biomass security at competitive prices for the power plants. Accordingly, the biomass power projects will be based on the highly efficient Biomass Integrated Gasification Combined Cycle (BIGCC) technology which can produce 30% more electricity as compared to a standard combustion based biomass power plant for the same quantity of biomass. AllGreen plans to integrate Biomass gasifiers with gas engines from GE Jenbacher. IIScs biomass gasification technology is based on the open top down draft concept and has been proven to provide the cleanest producer gas. GE Jenbacher has successfully operated their gas engines with Biomass gasifiers from IISc and offers technical and commercial guarantees when their engines are used with biomass gasifiers based on IISc technology. AllGreen will set up 6.5 MW Integrated Green Energy Facilities using biomass resources at multiple locations throughout India. Apart from electricity, the facilities will be producing activated carbon as a bi-product and will include a cold storage facility that would be operated using the waste heat from gas engine jackets. We are excited about the AllGreens business strategy which combines biomass gasification technology developed by IISc with gas engines from GE Jenbacher. This combination brings about efficient resource utilisation as well as reliability of operations at the least cost said Dr. S. Dasappa of Combustion Gasification and Propulsion Laboratory, IISc which developed the Biomass Gasification technology.

AllGreen Energy India Pvt. Ltd., is organised for the purpose of developing, owning and operating a portfolio of renewable energy assets in India that utilise resources in a sustainable and environmentally friendly manner, creating wealth in a socially inclusive way and thereby making a positive impact on the lives of the people it touches. AllGreens management brings to the table more than 100 man years of experience in renewable energy, capital markets and entrepreneurship. More information can be found at: www.allgreenenergy.net

Indian Institute of Science (IISc) is a premier research institute of India founded a century ago. It carries out research and also provides higher education in almost all spheres of science & technology. Apart from carrying out research in cutting edge technologies, the institute also has undertaken several pioneering initiatives to develop and disseminate technologies that affects the common man. Combustion, Gasification and Propulsion Laboratory (CGPL) is one of the laboratories of IISc under the aegis of the department of Aerospace Engineering of the Institute. Apart from its core work of rocket propulsion, CGPL has been active in the development of various energy related technologies such as biomass gasification, removal of hydrogen sulfide from biogas (ISET Process), Precipitated silica from rice husk ash (IPSIT Process), Efficient biomass stoves, techniques for charcoal production and activated carbon production over the past 25 years. Several of these technologies have been patented and licensed to different manufacturers. CGPL has also been striving to address the energy requirements of biomass-based industries and offer turnkey solutions through its licensees.

EXHIBIT 3 TO PRESS RELEASE

Our Renewable Energy Projects have a number of internal synergies among the various components each reinforcing the other in resource consumption and energy usage. Our Biomass Integrated Gasification Combined Cycle (BIGCC) Power Plant uses the low cost, patented and proven process, perfected by Indian Institute of Science, Bangalore, that has been used in over 50 plants in India and abroad. All the causes of inefficient burning are adequately addressed by the gasification process. Properly sized biomass is dried to less than 10% moisture using waste heat and subjected to thermo-chemical cracking in a controlled atmosphere, and all the volatiles are trapped in the reactor. The long chain compounds in the biomass are completely broken down to Producer gas. This gas is then cleaned using cyclones, chilled water scrubbers and fabric filters and then subjected to combustion in highly efficient gas engine generators from GE Jenbacher customised to use wood gas in the Open Cycle. Besides producing a very clean combustible gas, it also generates 5% by weight of charcoal, which can be further processed into activated carbon. an important industrial chemical with extensive use in water treatment, edible oil refining and pharmaceuticals. The exhaust contains absolutely no soot and particles and is clean enough to be directly used without further processing in a waste heat boiler to generate steam for the Bottoming Cycle steam turbine to generate additional 10% energy at zero fuel cost. The conversion efficiency of the BIGCC from biomass to electricity is 35%, compared to 25% for the alternative Biomass Combustion Power Plants. The heat in the engine jacket is used to generate chilled water, used for both gas scrubbing and for running a Cold Storage. Even the exhaust from the Waste Heat Boiler is used to dry incoming wet biomass. With lower specific fuel consumption of 25% than the alternatives, complete utilisation of exhaust heat to generate power and chilling capacity, lower water consumption than in Rankine cycle plants, much cleaner exhaust gas with no particulates and much lower NOx and CO than the other processes, the overall environmental footprint of the BIGCC plant in resource and energy use is much smaller.