Preliminary Results

Acta S.p.A.

("Acta" or the "Company")

Preliminary Results for the year ended 31 December 2011

Acta S.p.A, the clean energy products company, today announces its Preliminary Results for the twelve months ended 31 December 2011.

2011 Commercial Highlights

2011 Financial Results

Highlights since Period End

Robert Drummond, Chairman, said today:

"2011 was a year of significant development for Acta, in which the Company gained considerable traction in the marketplace for its hydrogen generation products, as evidenced by the commercial agreements signed prior to and post year end. These agreements covered applications in the areas of fuel cell back-up power systems, domestic renewable energy storage, light electric vehicles, laboratory applications and flame welding systems, demonstrating the wide commercial appeal of our technology.

Post year end we successfully completed a fundraising of £2.03 million which puts the Company on a stable financial footing for the future, and we have negotiated a satisfactory exit from our previous photovoltaic sector activities. These two important achievements leave the Company wholly focused on its core hydrogen product range and well positioned for the future.

Looking ahead, we will be driving our revenue growth over the forthcoming years on the basis of the commercial partnership agreements signed to date and similar agreements expected to be signed with system integrators and fuel cell and electrolyser manufacturers. Due to Acta's significant cost leadership we are currently seeing a strong upswing in demand for our products from the fuel cell sector, particularly in those applications where fuel cells have achieved commercial viability, and we are excited to be entering this key adoption phase for our products."

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Chairman's Statement

I am pleased to present the Preliminary Results for the year ended 31 December 2011 and to provide this statement on Acta's commercial progress.

Overview

In 2011, Acta achieved significant progress in the development and commercialisation of its core hydrogen generation products and technologies. We completed and announced the development of a number of new products, including larger electrolyser stack sizes and new hydrogen generation applications. These developments have been followed by product sales and commercial development and supply agreements, demonstrating the immediate commercial appeal of our highly cost-effective hydrogen generation products.

During the final quarter of 2011 and continuing into 2012 we have announced commercial agreements with partners in the following sectors: fuel cell back-up power systems, domestic renewable energy storage, light electric vehicles, laboratory gas applications and flame welding systems. Although our product offering is the same across all these sectors, the wide range of applications already being addressed demonstrates the broad commercial potential of our highly innovative core technology.

This important progress in our core business was facilitated by our exit from the photovoltaic sector during the second half of 2011, completed after the year end. This strategy has allowed the Company to focus entirely on the commercial engagement of its hydrogen product range where Acta sees the most opportunity for continued growth and this focus will be maintained going forwards. After the year end Acta also successfully completed a fundraising of £2.03 million which puts the Company on a stable financial footing for the next stage of its growth.

Financial Results

Following our decision to dispose of our photovoltaic activities, the financial results of Solgen S.c.r.l., our joint venture company, have been deconsolidated from the Group's financial results for the year, resulting in a reduction in Group revenue and operating costs compared to 2010.

Acta's financial results have nonetheless benefitted from its activities in the photovoltaic sector during 2011, as they did in 2010, and in particular the Company's operating cash flow during the second half of the year was financed by the receipt of working capital previously invested in the photovoltaic activities.

Revenues fell to €3.9 million (2010: €7.9 million), while operating losses were reduced by 52% from €3.8 million to €1.8 million. This improvement in operating performance resulted from the increase in high-margin photovoltaic project consent sales, which rose from €1.2 million in 2010 to €3.0 million in 2011, while photovoltaic installation revenues fell in the year from €6.5 million including Solgen in 2010 to €0.8 million excluding Solgen in 2011. In addition a 51% reduction in total operating costs was achieved in the year, from €11.7 million in 2010 to €5.8 million in 2011, arising from the deconsolidation of Solgen, a reduction in photovoltaic installation service costs, and a 47% reduction in operating overheads, implemented in the second half of the year.

For the purposes of comparison with 2010, excluding the impact of the deconsolidation of Solgen from the group financial statements, revenue in 2011 would have seen an increase of 2% to €8.1 million (2010: 7.9 million), while operating costs would have fallen by 13% to €10.2 million (2010: €11.7 million), and operating losses would have fallen by 45% to €2.1 million (2010: €3.8 million).

The reduced cost base in operating overheads achieved by the end of 2011 has been realised through focussing the Company's expenditure on its key commercial and production activities for the hydrogen product range, together with reductions in senior level remuneration and external professional fees. Personnel costs fell by 12% against 2010, with a strong reduction between the first and second half of 2011. The Company intends to maintain this lower cost base in the current year in order to maximise the funds available for working capital during the current commercial adoption phase.

Grant receipts of €915,000 were received during the year (2010: €81,000), of which €342,000 was grant income. Cash balances at the year end were €545,000 excluding Solgen, compared to €4.4 million at the end of 2010 including Solgen. Operating cash outflow was €0.5 million compared to €3.1 million in 2010, while net cash outflow was €3.9 million, compared to €1.9 million net cash outflow in 2010 (excluding the capital increase completed in 2010). This increase in net cash outflow relative to last year arises primarily in relation to the sale of photovoltaic project consents recognised in 2011, for which the cash was received in 2010. For comparison with 2010, operating cash outflow including Solgen would have been €1.1 million (2010: €3.1 million outflow) and cash balances at year end would have been €753,000 (2010: €4.4 million).

Moving Forward

The start of 2012 has been particularly encouraging, with the successful completion of a £2.03 million fundraising and the signing of a ten-year licensing and distribution agreement with our strategic commercial partner Heliocentris Energy Solutions AG, who also participated in the fundraising. We believe that these events represent a strong validation of the technology and commercial prospects of the Company.

During this year and next we will be driving our revenue growth on the basis of the commercial partnership agreements that have been signed over the last six months, together with expected new partnership agreements with system integrators, fuel cell and electrolyser manufacturers in our key markets.

We will continue to focus on those markets and applications where fuel cells have achieved commercial viability and are making steady progress relative to incumbent technologies such as batteries and diesel generators. We believe that our technology is a key enabler for the fuel cell sector, and has exciting commercial potential also in other commercial and industrial gas applications.

I would like to thank our shareholders for their continued support as we progress through this key commercial adoption phase.

Chief Executive's Statement

Introduction

During 2011 we made substantial commercial progress in our core hydrogen product range. We have delivered new product launches and commercial agreements across various applications, markets and regions, and we see the opportunity for significant revenue growth in these markets in the coming twelve months.

Product Review

In the Company's Interim Results statement announced in June 2011 we reported that Acta was experiencing strong commercial interest in its electrolyser products as a recharging system for fuel cell products in back-up power and back-to-base applications, where individual units had been shipped for evaluation and prototyping in the US, Europe and Asia.

I am pleased to report that this commercial engagement strategy has continued to make good progress, resulting in a number of commercial partnership agreements announced towards the end of the year and a growing value of product shipments and commercial proposals in these applications.

During 2011 and in early 2012 we have completed the development of new products within our hydrogen generator product range, including a 200 litres per hour electrolyser, and electrolyser stacks in the sizes of 60, 100, 200, 500 and 1,000 litres per hour where our products and technology are well protected by patents and by internal know-how. Prototype units of these products have been sold to our customers, with whom we are working to integrate the stacks into their own end-user products.

We have also developed an exciting application for our electrolyser technology in the area of gas welding, and have sold initial prototypes to our commercial partner CBIL, a specialised, medium-sized French producer of gas-based welding and related equipment for the industrial, professional and military markets with whom we have signed a commercial partnership and distribution agreement. This application uses both the hydrogen and the oxygen produced by our electrolyser stack to create a safe, controllable, low cost gas supply for welding applications. In addition to our fuel cell market opportunities we are pursuing the gas welding market and other commercial and industrial applications of our hydrogen generation technology.

Commercial Review

Through these successful commercial developments we have established a foothold in various markets around the world, including Taiwan, Australia, USA, Germany, Middle East, France, Portugal and Italy. We believe that we will continue to see rapid progress in these commercial relationships and increased traction for our revolutionary hydrogen generation technology throughout this year and next, as we expand into new territories and applications and move into full production.

Our most significant commercial achievements during 2011 and early 2012 have been as follows:

We believe that the exceptionally low cost and engineering simplicity of our products deliver significant added value to our partners and to their end user applications, allowing our products to be sold on the basis of cost savings and service benefits, rather than for the environmental benefits that they also deliver. We believe that the rollout of trial projects, test installations, initial production orders and volume purchase agreements over the next twelve months will demonstrate the size of the market opportunity that our products are addressing.

Photovoltaic Review

Our activities in the photovoltaic sector contributed to our financial results for the year, and provided the Company with working capital while we focused on the technical and commercial development of our core business. The uncertainty created by legislative changes in the Italian PV sector was resolved during the year, allowing the reinstatement of revenues for project authorisation sales previously suspended and the retention of the previously received cash payments. However, the changes brought about by the new legislation weakened the strategic fit of this activity within our business, and since the middle of 2011 we have reduced our PV interests without further investment. Since the year end we have also agreed terms, subject to completion, for the disposal of our remaining PV interests to our joint venture partner Fedi Impianti S.r.l.

Grant Activities

Acta received €915,000 in grant funding during 2011, of which €342,000 has been recognized as income and registered as a reduction in capitalized product development costs and €450,000 was received as advance payment in relation to a new grant funded project, LIFE+2010, approved in October 2011 and scheduled to begin in mid 2012.

Highlights since Period End

On 7 March 2012 we announced the successful completion of an equity fundraising which raised £2.03 million (excluding expenses) to finance the working capital requirements of the Company's current expansion. A combination of new and existing institutional shareholders participated in this capital increase, indicating confidence in Acta's technology and commercial prospects.

We were particularly pleased to include an investment of €250,000 from our strategic partner Heliocentris in the fundraising, as this represents a significant endorsement of Acta's technology from a well-placed commercial partner. The commercial agreement signed with Heliocentris on 27 February 2012 will enable Acta to address those markets and applications where Heliocentris has established sales channels, and particularly in the Middle East and Africa for back-up power systems, in Germany for energy independent homes, and worldwide for laboratory gas applications.

Finally, following the Letter of Intent signed with Horizon in early 2012 Acta has begun the development of new products for the high volume market for small hydrogen generators for consumer fuel cell products.

We believe that the scope and content of these recent agreements demonstrates the adaptability and highly cost competitive nature of Acta's revolutionary technology.

Outlook

Overall, 2011 and the period since the year end has seen significant progress in the development and positioning of Acta as a market leading electrolyser developer and producer. Our products have been tested and reviewed by a large number of potential partners and customers across multiple applications, and have received substantial endorsement in the form of partnership agreements, product sales, orders and enquiries. We will continue to develop our existing partnerships together with new commercial relationships in progress, and we will update our shareholders on these developments in due course.

We look forward to 2012 and beyond with great excitement as we move into the commercial adoption of our technology within the global market for cleantech products.

Consolidated Statement of Comprehensive Income

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to preliminary financial results

1. Earnings per Share

The calculation of basic earnings per share is based upon the net loss attributable to the ordinary shareholders of €2,228,250 (2010: €3,925,485) and weighted average number of shares in issue of 47,378,938 (2010: 42,285,960).

2. In view of its accumulated losses and in accordance with Italian law, the Company is not in a position to make payment of a final dividend (2010: £nil).

3. These financial statements are presented in Euros as that is the currency of the primary economic environment in which the Company operates.

4. The annual financial statements are due to be signed by the auditors not less than 15 days before the AGM in accordance with Italian law.

5. Copies of the Company's Annual Report and Accounts will be available from the Company at Via di Lavoria 56/G, 56040 Crespina (PI), Italy. Alternatively this statement and the Annual Report and Accounts will be available to download from the investor relations section on the Company's website at www.actagroup.it.