Europlasma: New Letter of Intent Signed for Financing CHO-Power(R) units

BORDEAUX, France, April 8, 2010 /PRNewswire-FirstCall/ -- Europlasma, the French Group specialized in clean technologies and renewable energy production, is announcing that a letter of intent has been signed with a private equity fund specializing in renewable energies for the financing and development of plasma technology-based biomass gasification units. The agreement signed in September 2009 with Aleltho Energy LLP has been suspended as a result of differences between the parties.

Europlasma and its new partner, a 350 million euro private equity fund specializing in renewable energies (the "partner") have signed a letter of intent for financing plasma technology-based biomass gasification units for a combined capacity of 54 MW over three years, then a further 146 MW over two years, representing a potential total of 200 MW over five years in the Electricity from Waste (EfW) sector.

Europlasma and its partner are bound by an exclusive three-year agreement. Following the initial three years of this partnership, the partner will have a right of first refusal for financing the EfW unit projects for a further two-year period. The letter of intent also provides for Europlasma to exclusively supply (EPC: Engineering, Procurement & Contracting) the units financed within the framework of this partnership.

The Morcenx CHO-Power unit represents the first joint development. The letter of intent signed by both partners covers its financing, through an ad hoc structure (CHO-Morcenx SAS), owned 77.55% by the partner and 22.45% by Europlasma. Under the letter of intent, the partner will contribute EUR22.8 million to CHO-Morcenx SAS, with an initial EUR10 million tranche to be paid at the end of April 2010. Europlasma will contribute EUR3 million in equity. A performance incentive mechanism will enable Europlasma to raise its stake in CHO Morcenx SAS up to 45%. The operation and maintenance contract (O&M) will, as initially planned, be entrusted to Inertam for a 15-year period.

Since the technological, process and environmental due diligences carried out by SLR Consulting at the end of 2009 are still valid, the negotiation process was accelerated. The terms of the agreement between Europlasma and the partner, subject to a positive outcome on the diligences concerning the Morcenx unit's commercial contracts, will enable building work to commence in May 2010. Lastly, this operation does not involve any transfer of intellectual property or any dilution of the company's shareholding structure.

About Europlasma

Founded in 1992, Europlasma is a French Group specialized in clean technologies and renewable energy production. The Europlasma Group is made up of four main units and 260 employees who are all firmly committed to sustainable development and experts in waste processing and reclamation.

    - Europlasma develops, produces and markets waste processing
      and energy production solutions based on its proprietary plasma
      torch technology.

    - Inertam is the global specialist for the destruction and
      reclamation of asbestos and hazardous waste.

    - CHO Power is a waste gasification power producer (EfW -
      Electricity from Waste).

    - Europe Environnement is the European market leader for
      ventilation and air depollution systems for industry.

    http://www.europlasma.com

    Alternext - NYSE Euronext Paris - Ticker: ALEUP - ISIN: FR0000044810

    Press and investor contacts:
    Europlasma
    Cédric Bérard, Chief Legal and Financial Officer,
    [email protected]
    Tel: +33-5-56-49-70-00

    Calyptus
    Marie Ein / Alexis Breton,
    [email protected]
    Tel: +33-1-53-65-68-68

SOURCE Europlasma