The Directors are pleased to announce that the Rights Issue was oversubscribed. We would like to express gratitude to everyone who supported the offer allowing us to return to Munich to complete the engine testing. The Directors have decided to allocate shares to all shareholders who subscribed to the rights issue.

The testing in Munich is crucial to moving towards mass production of our engine product. The testing in Munich was primarily for working towards several mass production contracts in China. Over the last six months we have received further interest from a company in Germany who wish to manufacture compound engines for power generation. This company has requested 5 prototype engines from us, and we have arranged meetings with them to discuss details of this request upon our return to Germany.

We have also received strong interest from a large development and manufacturing company in Brazil. This company wants to develop and manufacture ethanol fuelled engines for Brazil, and are currently seeking federal funds from their government for the project.