CFU to receive $3.9 million from legal case

Monday 16 August 2010

CERAMIC FUEL CELLS TO RECEIVE $3.9 MILLION FROM LEGAL CASE

Ceramic Fuel Cells Limited [AIM/ASX: CFU], a leading developer of high efficiency and low emission electricity generation units for homes and other buildings, will receive approximately $3.9 million from a legal case against its former investment advisor.

In late 2009 Ceramic Fuel Cells began legal action in the Federal Court in Melbourne against its former investment and treasury advisor, Oakvale Capital Limited, relating to losses suffered by Ceramic Fuel Cells on financial investments. The litigation was funded by ASX-listed litigation funder IMF Australia Limited. IMF is paying the costs of the litigation, including the Company's legal costs, in return for an agreed share of any judgment or settlement sum.

Ceramic Fuel Cells and IMF have agreed to settle the case against Oakvale Capital Limited, with Oakvale's insurer to pay the agreed settlement sum by 27 August 2010. After legal costs and IMF's agreed share of the settlement sum, Ceramic Fuel Cells will receive approximately $3.9 million including GST.

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About Ceramic Fuel Cells Limited

Ceramic Fuel Cells Limited is a world leader in developing fuel cell technology to provide highly efficient and low-emission electricity from widely available natural gas. Ceramic Fuel Cells is developing fully integrated power and heating products with leading energy companies in France, the United Kingdom and Germany. The company has also sold BlueGen gas-to-electricity units to major utilities and other foundation customers in Germany, the United Kingdom, Switzerland, The Netherlands, Japan, the United States and Australia.

Ceramic Fuel Cells employs 100 staff in Australia and Europe and is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

www.cfcl.com.au