Ethanol Reformer Agreement for Diesel Enrichment

Acta S.p.A.

("Acta" or "the Company")

Ethanol Reformer Agreement for Diesel Enrichment

Acta S.p.A. (AIM:ACTA), the clean energy products company, is delighted to announce that it has signed a joint development agreement ("Agreement") for the production of an ethanol reforming diesel enrichment product. Acta's product is initially intended for the substantial Brazilian truck fleet market.

The Agreement has been signed between the Company and Nelson Piquet, the three-times world champion Formula 1 driver; LAAR Consultoria e Assessoria Ltda, a Brazilian engineering consultancy company; and Torben Grael, five-times Olympic sailing medal winner and one of the world's most successful sailing champions. Nelson Piquet is a majority shareholder together with Qualcomm Inc., of Autotrac S.A., a substantial Brazilian truck fleet services company providing satellite tracking and communication systems for truck fleets, giving Acta significant access to this market.

Under the terms of the Agreement, Acta will provide the ethanol reformer, catalyst and process control electronics, while the other venture partners will develop the fuel and gas management system, electronic interface and installation engineering for the onboard truck system. The completed system will reform ethanol to produce high quantities of hydrogen, which will then be fed into the engine of large capacity diesel trucks to obtain a reduction in fuel consumption and particulate emissions.

The Company believes that this product is particularly well suited to the Brazilian market, where ethanol is already established as a widely distributed and low cost automotive fuel. Generating the hydrogen for diesel enrichment from ethanol, rather than through onboard water electrolysis achieves two important objectives: firstly, it increases the net saving of diesel, which is in relatively short supply in Brazil, and secondly it generates the hydrogen for the application from bioethanol, which is an inexpensive, locally produced renewable fuel.

Brazil has the largest diesel truck market in South America, with a fleet of approximately two million vehicles, and internal sales of 170,000 trucks during 2010 (Source: ANTT, ANFAVEA). To date, Acta has demonstrated the working prototype of its compact and light-weight ethanol reformer and the partners hope to complete the full system prototype by the middle of 2011. Following completion of this prototype the partners intend to form a production company joint venture for the local production and distribution of the system to the large and fast-growing Brazilian market.

Following the launch of system to the truck market, the partners intend to develop a marine version for use in nautical diesel engines.

Paolo Bert, Chief Executive commented: "While demonstrating Acta's diesel enrichment technology to our Brazilian partners using onboard water electrolysis it became evident that ethanol was a more suitable hydrogen source than water for the Brazilian market. We are pleased to have successfully produced a prototype of this new application of our hydrogen generation technology, and to form this important partnership to develop and produce the system for the Brazilian diesel market. We believe that the prominence and commercial reach of our partners will greatly help us to accelerate the market adoption of the final product."

Nelson Piquet added: "We see an outstanding commercial and environmental opportunity for this application in Brazil and beyond, and we are pleased to be entering this partnership to pursue it together with Acta."

- 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. The Company is also extensively involved in the Italian solar photovoltaic market through its photovoltaic business, ActaSol, and is committed to integrating its award-winning electrolysers with renewable energy sources. The Company is currently in the process of delivering a significant photovoltaic installation contract to SPF Energy through its joint venture company, SolGen, and is developing a substantial pipeline of project consents.

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. Acta has exploited these technologies to develop onboard automotive hydrogen generation systems for diesel enrichment, reducing diesel consumption and pollution emissions.

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, UPS, 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 is marketing its electrolyser product range to early adopters through its energy products division, Acta Energy. This division's objective is to ensure, through facilitating the widespread adoption of commercial and domestic fuel cell products, that Acta's hydrogen generator becomes a familiar industrial and domestic appliance.

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

www.actagroup.it www.actaenergy.it