Re. Oxygen-Hydrogen Gas Welding System

Acta S.p.A.

("Acta" or "the Company")

Launch of Professional Model of

Oxygen-Hydrogen Gas Welding System

Acta S.p.A. (AIM: ACTA), the clean energy products company, announces the launch of the PUREFlame 600, a larger model of the PureFlame 300 gas welding system announced on 21 November 2011. The PUREFlame 600 is a high performance and low cost oxygen-hydrogen generator for flame torch welding, soldering and brazing. It delivers a high temperature, clean, carbon free and stable flame and has been developed for the professional welding market.

The new product delivers 400 litres of hydrogen and 200 litres of oxygen per hour, and is based on a new lower cost and lower weight stack design and power system. Following completion and testing of the new system, Acta has successfully demonstrated the prototype to CBIL, its French welding system manufacturing partner. Under the terms of the commercialisation agreement with CBIL, Acta will supply the new stack and electronic control board to CBIL, which will be responsible for production of the product's balance of plant and certification.

Acta's electrolyser stack produces hydrogen and oxygen separately on either side of a membrane, and therefore provides an ideal gas flow for welding torches by keeping the gasses separated until the point of ignition and use, thereby greatly improving user safety. The system is compact, portable and much safer and easier to transport by car or van than high pressure gas bottles which are currently used for comparable welding systems.

The system offers substantial advantages over existing gas welding systems by removing the cost and inconvenience of expensive and bulky gas supply bottles while retaining the safety of separate gas supply lines. Acta's strategy is to supply the oxygen-hydrogen generator stack to manufacturers of gas welding systems and on 12 December 2011 the Company announced a development and commercial supply agreement with CBIL for the development and supply of portable welding equipment for the professional, tool hire and DIY markets.

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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.

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