ACTA.L Regulatory News (ACTA)

Acta S.p.A.

("Acta" or "the Company")

Hydrogen fuel enrichmentIndependent validation of test results

Acta, the clean energy products company, announced at the time of the Company's preliminary results on 25 March 2010 that its "onboard" hydrogen fuel enrichment system for diesel trucks and cars was undergoing an independent testing programme. The Company is pleased to announce that the results from this programme were extremely positive. Under strict bench test conditions using a new 7.2-litre diesel engine Volvo truck, the system achieved a significant reduction in fuel consumption, equivalent to an average 17% net fuel saving, by use of Acta's fuel enrichment system.

The Company has developed its hydrogen enrichment system for diesel fuel, based upon its unique water electrolyser technology. Fuel enrichment with hydrogen promotes the cleaner and more efficient burning of diesel fuel, resulting in higher power output, lower fuel consumption, and lower particulate emissions.

The tests took place in Verona at Car Diesel S.p.A., one of the largest independent test centres for fuel consumption and engine performance in Northern Italy. A new Volvo earth mover truck, fitted with a 7.2-litre capacity, 280HP engine (D7E280), compliant with Euro 5 emission standards, was tested at 80% of its power with hydrogen gas injected to enrich the fuel, and the fuel consumption was compared to the same test conditions without hydrogen injection. The Company estimates that the reduction achieved in consumption represents a net fuel saving of over €6,000 per annum for an average long-distance HGV, which would represent a payback period of only six months, based upon Acta's anticipated commercial pricing for this system. These results are an important technical validation of the data obtained by the Company in its own laboratory, in a previous independent engine performance test, and in road tests.

Current systems for hydrogen fuel enrichment are generally based on liquid alkaline electrolyser technology, which the Company believes to produce lower-grade hydrogen contaminated with water and potassium hydroxide, contaminants that are potentially damaging to the engine). Acta's system is free of such contaminants, producing clean, dry hydrogen at higher purity and higher system efficiency. Furthermore, the water for refilling the system is the same as that used for car batteries and can be purchased at any petrol station. The Board believes that this advanced technology system is more compact, safer, simpler, and lower cost than current hydrogen fuel enrichment systems, which, for the first time, will make such a system technically and commercially viable in motor vehicle applications.

Paolo Bert, Chief Executive, commented: "The excellent test results and the evident commercial potential of our hydrogen fuel enrichment system is extremely encouraging. We believe that our system will allow diesel vehicle operators to save money, reduce fuel consumption and lower their emissions. We expect to complete product development, including the electronic control system, over the next six months, with commercial launch to the after-sales market by the end of 2010. We anticipate significant demand for the product, once launched, selling into a market that we estimate to be worth in the region of €8 billion, while promoting significant environmental and economic benefits."

- ENDS-

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Notes to Editors

Acta S.p.A. is a developer and provider of a broad range of renewable energy and related products. Its product line includes a range of compact hydrogen generators as well as various portable, mobile and backup fuel cell devices that can make use of locally generated hydrogen in UPS, marine, automotive, electric cycling, scooter, camping and domestic applications. The Company's broader interests include a range of environmental catalysts and solar power projects.

Acta's cost-competitive products 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 industrial and consumer 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 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. was admitted to trading on AIM in October 2005. It is based near Pisa, Italy, from where it manages a growing overseas distributor network targeting a global fuel cell market estimated to be worth US$26 billion by 2020.