Acta and Ecoisland sign Letter of Intent

Acta S.p.A.

("Acta" or "the Company")

Acta and Ecoisland sign Letter of Intent for Isle of Wight domestic hydrogen partnership

Acta S.p.A. (AIM: ACTA), the clean energy products company, has signed a Letter of Intent with Ecoisland Partnership CIC, a Community Interest Company whose aim is to make the Isle of Wight the first sustainable region in Britain. Acta will offer a domestic renewable energy storage solution for Ecoisland, ensuring that renewable energy can be stored and used exactly when it is needed.

The Company believes that the recent confirmation by the Department of Energy and Climate Change ("DECC") that one fifth of the UK's aging power stations are due to close over the coming years, prompting an increase in the cost of power supply and a looming "energy gap", is a timely reminder of the importance of a diverse energy mix, including renewable energy generation and storage.

Ecoisland intends to make the Isle of Wight self sufficient with regards to energy, water, food and fuel by 2020, and an important part of this is ensuring that the island has an effective energy storage infrastructure that can make the best use of the energy being produced.

Acta will be the domestic hydrogen partner for Ecoisland. Initially, Acta and Ecoisland will run a domestic renewable energy storage trial project for one house on the Isle of Wight. Should this prove successful, Acta and Ecoisland intend to work together to promote, finance and supply domestic renewable energy storage solutions for installation in potentially half of the 65,000 homes on the island, as well as in homes on the partner islands of the Ecoisland Accord, including Jersey, Fiji and the Seychelles. The parties expect that the trial will commence by the end of April 2013 and will run for approximately three months.

How the technology works:

Acta will work with Dantherm Power, a company focused on the development and production of commercially viable solutions using fuel cell and hydrogen technologies and part of the Ballard Group.

The system integrates a 5kW fuel cell system from Dantherm Power with an Acta EL500 electrolyser. This system is powered by renewable off-grid power and when installed will generate hydrogen directly from the solar panels on the home. The hydrogen will be stored in cylinders and then put through a fuel cell when energy is needed (for example, to power the night-time energy requirements of the house).

Additionally, it is expected that the island's smart grid infrastructure will be able to transmit the stored energy to each part of the island where and when it is needed. Decentralised hydrogen storage in homes will therefore allow the island to maximise its renewable resources and will be essential for reaching the island's ambitions of being energy-independent by 2020.

A successful trial at Ecoisland could also demonstrate to homeowners more widely in the UK and internationally that clean power storage technologies are a good, cost efficient, safe and reliable alternative to more traditional energy sources, in addition to being much better for the environment. This comes at a time when governmental and investor appetite for fuel cell and related hydrogen generation products is also increasing.

Paolo Bert, Chief Executive of Acta commented: "It is tremendously exciting for Acta to be working with Dantherm Power to help Ecoisland make the Isle of Wight energy self-sufficient. We are moving into a period of increasing energy prices owing to the tightening supply of traditional fossil fuels, and this project will allow clean, renewable energy to be stored so it is used economically, conveniently and safely, and to do so on a local basis that minimises energy transmission losses. Even if the sun is not shining, our clean energy storage solution will enable the solar energy previously generated to be used at any given time, when and where it is most needed."

Jesper Themsen, CEO of Dantherm Power commented:

"Dantherm Power is proud of being chosen as the partner supplying reliable backup power units in a sustainable eco-system backing up primary sources like solar pv. This project will prove that the experience harvested in traditional backup power business can be transformed into a fully renewable eco-system."

David Green of Ecoisland commented: "We are pleased to welcome Acta as a partner to the Ecoisland project. The cost-effective storage of renewable energy on a local basis is the "holy grail" of the renewable energy industry and we hope that this project will allow us to move closer towards this goal for the Isle of Wight and for wider benefit of society."

- ENDS-

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About Acta S.p.A.

Acta S.p.A. is a developer and manufacturer of a range of clean energy products. Its product line includes market-leading compact hydrogen generators (electrolysers) which produce pure, dry and compressed hydrogen in a way that is easy-to-use and completely safe, and the Company is committed to integrating its award-winning electrolysers with renewable energy sources.

Acta's cost-competitive electrolysers are based on its proprietary, inexpensive environmental catalyst and hydrogen conversion technologies. These products help overcome the barriers to the adoption of fuel cells, most notably the lack of a local hydrogen infrastructure. They are also applicable in non-fuel cell hydrogen and oxygen applications, including oxy-hydrogen gas welding systems, where the Company is generating significant commercial interest.

Acta's low-cost hydrogen generators represent a unique breakthrough in electrolyser technology. They can operate using mains power or intermittent renewable energy, and produce clean, dry hydrogen already at pressure for use in fuel cell and other applications. This unique combination of features avoids the system complexity and energy cost of further cleaning, drying and compression of the hydrogen, resulting in a simple, compact, low-cost and highly efficient system that is ideally suited for energy conversion and storage applications. In such applications, which include battery replacement and renewable energy storage, low cost and high efficiency are critical to commercial viability, while hydrogen compression is essential for the energy density of the system. No other water electrolyser currently on the market offers this combination of benefits.

Acta is focusing on delivering its products to markets with high volume demand for high-value environmental solutions (transport, back-up power, energy and leisure). It is accelerating the commercialisation of its products via partnerships with original equipment manufacturers (OEMs), distributors, and agents in these sectors, and intends to drive down production costs at high volume via contract manufacturing.

Acta S.p.A. is based near Pisa, Italy, and was admitted to trading on AIM in October 2005.

www.actagroup.it

About Ecoisland

The Ecoisland Partnership CIC is a Community Interest Company whose aim is to make the Isle of Wight the first sustainable region in Britain. Run by members of the Community and in the interests of the Community, Ecoisland has a detailed vision of how the Island can achieve sustainability in terms of energy, water, food and fuel over the coming years.

www.eco-island.org

About Dantherm Power

Dantherm Power is a young, dynamic and pioneering company. Since 2003 we have focused on the development and production of commercially viable solutions using fuel cell and hydrogen technologies.

Our primary customers are international IT and telecom network suppliers, who rely on backup power units to provide uninterruptible power supply (UPS). Other customers include relief organisations and military units who need a reliable mobile power supply when operating in the field.

Dantherm Power is involved in both Danish and international research initiatives within hydrogen and fuel cell technologies. This kind of close cooperation secures Dantherm Power a role as first mover whenever the use of these technologies proves commercially viable in a new area. An example: Within heat and power supply for domestic buildings and small scale industries, we expect to be ready for full market introduction of a Micro Combined Heat and Power unit in 2013.

www.dantherm-power.com