Voller Energy Group PLC a leader in portable fuel cell systems and one of the first companies in the world with deliverable technology announces its interim results for the six months ended 31 December, 2007.

Operational Highlights

Commercial version of the Emerald Fuel Cell to be supplied in accordance with the plan
Manufacturing facility established at Basingstoke
Technical collaboration established with the University of Cambridge to develop Diesel, Bio-diesel, Kerosene and JP-8 Fuel Reformer
Grant secured from the Department for Business, Enterprise and Regulatory  Reform

Financial Highlights

Cash balance of £3.330 million
Net asset value 16p per share
Operating loss of £1.401 million in line with budget 

Business Highlights

Deloitte Corporate Finance appointed to assist with a strategic review of  the Company's options to maximise shareholder value
All 2007 milestones were achieved
Emerald prototypes demonstrated successfully
Further orders received for the Emerald unit for the leisure market, supplementing those received for construction

Additional distributors appointed

Commenting on the results, Stephen Voller, Chief Executive Officer, said:  "Voller's progress over the last six months has been very encouraging.  We are one of the first fuel cell companies worldwide to have products ready for commercialisation and we remain on track for the delivery of our first commercial units as planned.  For the Voller team this represents the culmination of all the effort that has been expended over the last three years.

Voller continues to look at opportunities and applications for the Emerald  system and remain excited by the prospects for 2008."

Chairman’s Statement:

I am pleased to report on the activities of Voller for the six months to 31 December 2007. Combating climate change is now being addressed as a serious issue by governments all over the world. Targets for cutting carbon emissions and the necessary plan of action required to achieve this are being prepared. Within this global framework the UK has one of the most ambitious targets with government aiming to reduce, by 2050, the UK's carbon emissions to at least 60% below the 1990 level.

To achieve this target we will all need to make fundamental changes in the type of energy we use and how we use it. This will have a major impact on how we work, how we live, and how we travel. The 'hydrogen economy' may be an answer but significant challenges remain, viz: hydrogen has a lower fuel density than fossil fuels, creating practical usage and storage problems and the cost and logistics of building an appropriate infrastructure for storage and transportation remains an issue.

There is no one single solution to the challenge of reducing carbon emissions, but renewable and low carbon energy sources have a significant role to play in meeting that challenge. The utilisation of existing fuels, such as commonly available hydrocarbons - for example propane, butane, liquefied petroleum gas (LPG) and diesel - in a more efficient manner will result in lower emissions.

Voller's strategy has been to develop a commercial Auxiliary Power Unit (APU) based on fuel cell technology which uses as its base fuel commonly available hydrocarbons. This will assist in the transition from today's high carbon economy - high emissions, low efficiency - to the zero emission carbon economy of the future. 

Operational Review

I am delighted to report that the progress achieved since the publication of the year end results on 14 September 2007 has been very encouraging. During 2007 the three prototype units of the Emerald 1Kw APU system were demonstrated successfully in each of our target markets, namely construction and the leisure market, both for yachts and recreational vehicles. At the time of the preliminary results the receipt of a maiden order from GenQuip for twenty Emerald units was announced.  Since then, orders for a further six units have been received for the product from the leisure market both for yachting and recreational vehicles.

I am particularly pleased to report that Voller's  Beneteau Oceanis 411 yacht, equipped with an Emerald unit, participated in the ARC (Atlantic Rally for Cruisers) in November and December of 2007, a voyage from Gran Canaria to St Lucia. The unit performed well despite experiencing greater stresses than anticipated during the voyage, and provided auxiliary power which contributed to the comfort and convenience of the crew during the crossing.

In September 2007 shareholders were advised of the appointment of Unipart Leisure and Marine as the official UK distributor for Voller Energy's Emerald fuel cell system. In November 2007 it was announced that Disvent Ingenieros SA, based in Barcelona, had been appointed as the Company's distributor in the construction and leisure markets for Spain, the Balearic and Canary Islands.

Voller continues to look at opportunities to expand its Emerald product line in the future to offer customers both higher powered Emerald fuel cell units and a choice of fuels.  In September 2007 it was announced that the Company had entered into an agreement with the University of Cambridge to develop diesel, bio-diesel, kerosene and JP-8 reforming technology. Also during the period the strategic relationship with Ballard was extended and an agreement concluded with them for the supply of their mark 1030 fuel cell stack, which Ballard developed for the Combined Heat & Power (CHP) market in Japan.

Through these relationships the Company sees an opportunity to develop products which could have an application in a number of other alternative markets, such as Uninterrupted Power Supply, Surveillance Monitoring, Road Transport and longer term, Micro CHP. Micro CHP is the application of co-generation, which is the simultaneous generation of electricity and useful heat on a small scale, which would have an application in a residential home or the premises of a small business. This could not only extend the commercial opportunities available to the Company but assist in the reduction of carbon emissions.

In October 2007 a manufacturing unit was established at Basingstoke in order to prepare for the delivery of the first commercial units in 2008. I am pleased to tell you that delivery of these units remains on schedule and will commence as planned.

In November 2007 Voller was awarded a £146,000 grant from the Department for Business, Enterprise and Regulatory Reform (BERR) to develop an environmentally friendly welfare cabin for the construction sector.

Financial review

Operating costs were in line with expectations.  The increase over the comparable period of the previous year reflects the additional development spend on the completion of the prototype Emerald units and the creation of a manufacturing facility in Basingstoke.

Capital expenditure in the period was £49,000 and was incurred primarily on establishing the manufacturing capability.

Available cash at the end of the period amounts to £3.330 million and was in line with the forecast.

Stock markets all around the world are in turmoil as a result of concerns raised by lending into the 'sub prime' market and the level of consumer debt. These concerns have had the impact of reducing valuations of many companies, even those with well established products and a strong history of trading. At the end of the period under review the net asset value per share of the Company was 16p which is considerably in excess of the market price per share.  However, Voller continues to move towards the production of a commercial product and has demonstrated to the market place the technical effectiveness of the development programme.

Outlook

The year ahead offers a number of significant challenges in both development and manufacture together with the exciting prospect of being one of the first fuel cell companies in the world to deliver commercial product to the market place. 

It is clear that in order to continue the excellent progress achieved to date and to develop the product range to meet the challenges of the future, significant additional funding will be required. To this end we have been working with our NOMAD Seymour Pierce to encourage investment from the traditional institutional investor base and as announced today have appointed

Deloitte Corporate Finance to assist in conducting a strategic review of the business. This strategic review will explore a number of options, which may include, but not be limited to, strategic alliances, mergers, refinancing or a sale of the business.

The future is a very exciting one, one which offers us the opportunity of playing an important and innovative part in the attack on global warming. The progress that has been achieved in bringing fuel cell products to the market would not have been achieved without the hard work and dedication of all of the Company's employees, but particularly those in the development team. I would like to thank all concerned for their efforts. 

John Brown - Chairman

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Voller Energy has released further technical data from the engineering trials carried out on their prototype Emerald fuel cell during the 2007 annual transatlantic yacht race, the ARC Rally.

An accelerometer (measuring acceleration in G units) was carried onboard Voller Energy’s Emerald yacht over the 3,000 nautical mile passage from Lisbon via Gran Canaria to St Lucia in order to collect a range of data for analysis in the UK-based Voller Energy laboratory.

Data across a range of very extreme conditions from storm force winds to becalmed periods was measured every 30 seconds; monitoring angle of heal, pitching bow to aft of the boat and vertical upward and downward movement.

Raw data from when the fuel cell switched itself on was plotted against the g force of the boat. The findings show that the boat and Emerald fuel cell prototype withstood a maximum g force of 7 G while at sea. The forces exerted on the fuel cell were as a series of short sharp shocks, attributed to the high winds experienced in the 2007 ARC Rally.

Mark Tilley, Marine Specialist at Voller Energy and ARC Rally Skipper, said: “The prototype fuel cell withstood some very testing offshore conditions shown by the analysis of our data. The Voller Energy team are happy with the engineering trials of the fuel cell and respect the benefits which the fuel cell provided during the trip offering increased power availability. The prototype has exceeded our expectations in an offshore environment.”

During the St Lucia stopover Voller Energy tested out air conditioning units under tropical conditions and proved that smaller units than those traditionally fitted to 40 foot yachts can adequately cool the interior. Leading boat builders are already moving towards use of smaller, more efficient air-conditioning systems at an average 9000 Btu for a yacht of 40 feet. The Emerald fuel cell system can efficiently cope with the power supply demand for a 9000 Btu air-conditioning system.

Voller Energy is very confident in continuing their development into the greener power solution in the marine industry.

Voller Energy, a green technology company focused on alternative energy supply, with the aim of a lower carbon economy has collaborated with the world renowned yacht designer Ken Freivokh.  The 55 foot concept cruising yacht design drawings are a global first for a yacht designed to be completely powered by fuel cell technology.

Voller Energy’s Emerald Fuel Cell System is predicted to revolutionise power supply and design in the marine industry by providing clean, safe and reliable electric power. Without the need to house a sizeable generator or engine, the compact cell and constant supply of electricity opens up the design of a yacht.  Below decks there is increased design scope for living areas and a greater potential to incorporate electrically reliant components on deck for comfort cruising.

Ken Freivokh, an international sailor himself, is the founding designer of Ken Freivokh Design, the exclusive designer for many of the world’s prestigious brands such as Sunseeker and Nautor’s Swan.  More recently Ken has undertaken ‘one off’ projects such as the Maltese Falcon and Leopard 3.  Ken Freivokh is very much at the forefront of yacht design and supports the expansion of fuel cell technology into the yachting world, ‘a future yacht in five years time will be aimed at designing the whole yacht round a cell and accommodating a fuel cell will be standard issue in the marine design industry’, Ken Freivokh.

Environmentally fuel cells are very important, on a global level the Emerald fuel cell system is commercially the first to run off LPG, Propane or Calor Gas.  Compared to a traditional diesel generator the Emerald will cut toxic emissions by an estimated sixty times.  Added benefits include reduced maintenance, low noise and vibrations, with a significant reduction in overall weight.

Stephen Voller, CEO Voller Energy commented, ‘it is the potential reliability and ease of maintenance of the fuel cell which are its main attributes to the boating world, due to the nature of this leisure pursuit during passages you can be a long way from a service yard and need to trust and rely on your chosen electrical supply’.

Voller Energy will be featuring the clean and stylish, next generation 55ft cruising yacht on their stand 01.444 at METS this year.

VOLLER ENERGY GROUP PLC

Voller Collaborates with the University of Cambridge to Develop a Diesel, Bio-diesel, Kerosene and JP-8 Fuel Reformer

Voller Energy Group PLC, the leading developer of fuel cells systems, is pleased to announce that it is collaborating with the University of Cambridge, UK, to develop a diesel, bio-diesel, kerosene or JP-8 fuel reformer.

As part of its continuing development of reformer technologies Voller is pleased to announce that it has funded a research program which will be carried out in collaboration with the University of Cambridge to develop technologies capable of reforming (processing) hydrocarbon fuels. As a result of this collaboration Voller will have the rights to commercially exploit this technology. Dr Epaminondas Mastorakos of the University’s Department of Engineering will be the academic lead for the project.

Dr. Mastorakos and his colleagues have previously developed a process for the super adiabatic combustion of hydrocarbon fuels which enables fuels such as methane and propane to be converted to hydrogen and carbon oxides. The research program will adapt this process for incorporation into fuel cell systems developed by Voller and will also extend the range of fuels which can be processed to include complex hydrocarbons such as kerosene, diesel or JP-8.

This activity complements Voller’s other activities in fuel reforming which include the development of steam reforming and pyrolysis systems.

Voller has already released technology based on a 1kW steam reforming system that uses commercially available standard Calor Gas, liquefied petroleum gas (LPG) or propane. This system was successfully demonstrated in a mobile Groundhog 360 welfare cabin, manufactured by GenQuip PLC. In addition this system has been installed in a Beneteau 411 sailing cruiser.

Stephen Voller, Chief Executive of Voller Energy commented: "We want to offer our customers a choice of fuel cell products in the future based on a variety of widely available fuels. We believe that a portfolio of reforming technologies is important so we can offer LPG and diesel fuel capabilities.”

Voller Energy Group Plc (LSE:VLR)

Registered in England number 5140949 at Rawdon House, Bond Close
Basingstoke, Hampshire, RG24 8PZ, UK

Phone: +44 (0) 1256 813900 
Fax: +44 (0) 1256 813901
Web: www.voller.com

We make fuel cells work                  Please think before you print!  Thank you

Voller Energy Group PLC, the leading developer of fuel cell systems, is pleased to announce that TUV SUD has certified the Voller fuel cell auxiliary power unit ("APU"). Voller's APU is a 1kW class system operating from standard propane, liquefied petroleum gas (LPG) or Calor Gas. The system is designed for sailing yachts, recreational vehicles RV's, motor-homes and construction site welfare cabins.

Fuel-cell technology offers key advantages over conventional generators in many fields of application where self-contained power supply is indispensable. Fuel cells run more quietly, cause less vibration, consume less fuel, emit fewer pollutants and need to be serviced less often.

Stephen Voller, CEO of Voller Energy commented: "We are delighted that Voller's APU is the first fuel cell in the world to receive the TUV SUD certificate, which confirms that our system is safe". The advantages of fuel cell technology mean that we see virtually unlimited applications for our auxiliary power units, from the maritime sector or recreational vehicles such as caravans and mobile homes to construction site cabins. 

Tom Elliger, TUV SUD Industrie Service GmbH said, "This combination of a fuel cell running on LPG and its application on board a sailing cruiser must be a first worldwide." 

Further information is available on the Internet at www.voller.com and www.tuev-sued.de

VOLLER ENERGY GROUP PLC
Voller Energy to show fuel cell in Groundhog Cabin at Site Equipment Demonstration
May 22, 2007

Voller Energy Group PLC, the leading developer of fuel cells systems, is pleased to announce that the first installation of their 1kW class environmentally friendly generator in a construction site cabin is to be shown at the Site Equipment Demonstration (SED) show on 22-24 May at the Rockingham Race Track Kettering, UK.

The installation is in a mobile Groundhog 360 welfare cabin, which is manufactured in Wales by GenQuip PLC. This cabin can be towed to site and provides hand washing facilities, a kitchen area, a drying room and a rest area. The cabin is secure and Health & Safety Executive compliant. There are an estimated 20,000 welfare cabins in use in the UK.

Normally, the cabins are fitted with a diesel generator. However, this cabin has been fitted with a Voller Energy fuel cell system. As the fuel cell has few moving parts, there is none of the noise or vibration associated with conventional generators.

Emissions from the fuel cell are much lower than with a conventional generator. Quick and easy to install, the fuel cell system can be fitted to the existing wiring in the cabin. The system operates from Calor Gas, liquefied petroleum gas (LPG) or propane.

Voller’s fuel cell generator is safe and economical, and works in conjunction with batteries that are installed in the cabin. Power is provided from the battery bank and via an inverter power is supplied to the cabin. The fuel cell automatically monitors the battery voltage, so that when the battery voltage falls, it automatically switches itself on and recharges the batteries. Once the batteries are fully charged, the fuel cell switches itself off to conserve fuel.

In future products, hot water for the cabin will also be provided from the heat from the fuel cell.

Stephen Voller, Chief Executive of Voller Energy commented: "Our fuel cell generator will completely change the way that welfare cabins are used. As there is little noise and vibration from the system, people inside the cabin will be largely unaware that the fuel cell is operating. This will make working on sites much more pleasant.”

Josh Llewellyn, Chairman of GenQuip commented: “At GenQuip we pride ourselves on our innovation, and we are delighted to show the world’s first fuel cell system installed in a welfare cabin. We look forward to offering our customers an environmentally friendly alternative.”