Contract Termination and Regulatory Update

Acta S.p.A.

("Acta" or "the Company")

Notice of Contract Termination

and Impact of Italian PV Regulatory Review

Acta S.p.A. (AIM:ACTA), the clean energy products company, has been engaged in a framework agreement since June 2010 with SPF Energy (the "Framework Agreement") to sell photovoltaic project authorisations and EPC services for project installations.

In December 2010, Acta announced the €0.9 million conditional sale of project consents to SPF Energy under the terms of the Framework Agreement and that it was in negotiation to sell EPC services into these projects.

Following the changes recently announced to the Conto Energia feed-in tariff, the regulatory uncertainty has resulted in the temporary suspension of financing to the Italian photovoltaic sector for new projects while the market awaits clarification of future tariff mechanisms. As a result of this, Acta has today received notification from SPF of termination of the conditional sale completed in December 2011 and resultant EPC contract, as a result of which Acta will no longer be able to recognise the revenue and profit value of the consent sale in 2010, as previously anticipated.

In addition, due to local government uncertainty over the application of the new decree, the Company has experienced delays in the release of project consents that were approved during 2010 and sold for €2.45 million in December 2010. Unless the release of these consents is confirmed before the finalisation of the 2010 accounts, the Company will not be able to recognise the revenue and profit value of these consent sales in 2010, resulting in the full year results for the period ended 31 December 2010 being materially below market expectations.

Should the above sales not be completed and recognised in 2010, once the details of the new feed-in tariff have been confirmed and project financing to the sector is re-established the Company expects to be able to sell any consents returned to the Company during 2011.

The effect of the current regulatory uncertainty means that at this stage the likely impact on Acta's 2011 photovoltaic actives, in terms of PV consent and EPC sales, is uncertain, however, in the light of recent difficulties in the global oil and nuclear sectors, considerable political pressure remains evident in Italy for the re-establishment of stability to the photovoltaic sector, and the Government has indicated that further announcements to clarify the new tariff scheme will be made shortly. Once clarification has been obtained the Company will provide a further update as soon as is practical, however the Board remains confident of the overall outlook for the Italian PV sector.

- ENDS-

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