Biogas Nord AG / Miscellaneous

13.12.2007

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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>>> Founding of further subsidiaries
>>> The recently amended German law on renewable energy (EEG) points in the
right direction where biogas is concerned
>>> An EBIT (earnings before interest and taxes) figure of at least 2.5% of
turnover is planned for 2008
*
Bielefeld (Germany), December 13th 2007. The company BIOGAS NORD AG of
Bielefeld (Germany) is currently being transformed from a supplier of plant
systems for the agricultural sector into an international biogas concern.
The company has already fulfilled high expectations this year, by gaining a
foothold in various European countries and preparing the ground for the
setup of a number of additional foreign subsidiaries. France, Spain and the
UK now have their own branches and initial contracts have been received
from Romania, Hungary, Italy, Poland, the Netherlands and India. Events
programmed for the coming year include the founding of further subsidiaries
in Italy, the United States and Canada, along with the setup of a joint
venture in India. The proportion of turnover accounted for by activity
outside Germany is set to rise to at least 30% by as early as next year,
with the corresponding positive effect on results.

The enormous amount of effort expended will however not be reflected at
this stage in the company's accounts for 2007. 'We are currently working on
the assumption that we will not quite reach the objective of being back in
the black', says company founder and Chairman of the Board, Gerrit Holz.
The company is expecting to be in the red by an amount in the low (single
figure) millions, with overall performance results just below those of the
previous year. The turnover forecast of almost EUR40 million can no longer be
achieved, as numerous projects, both at home and abroad have been delayed,
which means that they will no longer be reflected in the turnover figures
for 2007. These include two orders from India, which have had to be put
back to next year on account of still-unpaid public subsidies. There are
also projects in Italy, Romania, Spain, the UK and Poland which likewise
will not get under way until next year.

Mr Holz continues: 'A major project in Germany's Thuringia region has also
suffered delays due to the presence of newly-discovered historic ground
pollution, which must first be dealt with.' The slowness in the domestic
market, caused by sharp increases in the price of substrates and a hiatus
while awaiting the result of discussions concerning amendments to the
German law on renewable energy (EEG), has had little effect on BIOGAS NORD
however. Just two confirmed projects (both in the German state of Hesse)
have had to be put back to next year, as the clients prefer to await
publication of the amended EEG law.

'The amended German renewable energy law (EEG), which is currently at the
cabinet-discussion stage, points the biogas sector in the right direction,
even if it is not entirely satisfactory', Mr Holz adds, 'one important item
from our point of view is the question of access to the gas network. The
German parliament is in any case soon to vote on the suggested amendments,
with particular reference to the provisions affecting the payment rules for
electricity obtained from biogas.'

With ongoing expansion under way abroad and a set of planned initiatives in
hand, BIOGAS NORD regards the new year in an optimistic light. The German
market is not to be neglected however, particularly given the fact that
BIOGAS NORD is currently expecting orders for major projects from domestic
energy suppliers and institutional investors. The company currently has an
order book worth over EUR40 million, with further orders expected to be
confirmed or reach their final negotiating stage by the end of the year.
'We are expecting both a sharp increase in turnover and considerably better
results in the coming year', says Mr Holz. The company's earnings before
interest and taxes (EBIT) are set to rise to at least 2.5% of turnover in
2008.

BIOGAS NORD AG, Michael Hauck, Werningshof 2-4, D-33719 Bielefeld, Tel.
+49(0)521 - 9633 - 230, Fax +49(0)521 - 9633 - 200, www.biogas-nord.com,
hauck@biogas-nord.de
***
german communications dbk ag, Jörg Bretschneider, Alsterufer 34, 20354
Hamburg, Tel. +49 (0)40 - 46 88 33 0, Fax +49 (0)40 - 47 81 80,
presse@german-communications.com, www.german-communications.com


13.12.2007 Financial News transmitted by DGAP

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