First Annual General Meeting of EnviTec Biogas

Shareholders endorse management’s strategy

Lohne, 11 July 2008 – At the first ordinary AGM of EnviTec Biogas AG [ISIN: DE000A0MVLS8], the shareholders clearly endorsed the strategy of the Executive Board. All items on the agenda were approved by a vast majority of over 99.9 percent, including the authorisation to repurchase own shares in an amount of up to ten percent of the share capital. At this stage, this is a general authorisation. The acts of the Management Board and the Supervisory Board were formally approved by over 99.9 percent of the shareholders.

CEO Olaf von Lehmden seized the opportunity to address some misconceptions about biogas. One of them is the ongoing “food or fuel discussion” about the alleged competition between land used for the cultivation of food and land used for the production of biogas. The CEO explained the differences between biodiesel, bioethanol and biogas as well as the advantages of biogas such as the higher energy yield. Also, biogas can be generated from a wide variety of resources, not only grain and maize but also millet, potatoes and simple grass. Moreover, waste from the food industry as well as from the production of biodiesel and bioethanol may be used.

In strategic terms, the company will continue its international growth and the expansion of its domestic and international own plant operations. The first successful step towards own plant operation outside Germany was made in June of this year, when EnviTec Biogas signed a contract for the construction of a 625 kW plant in the Dutch town of Bergharen. The plant, which is currently under construction, will be operated in cooperation with a local farmer. “At the time of the IPO, we announced that we would make inroads into new markets. This is what we have done. We are today active in more than 14 European countries as well as in India and China. This early and successful internationalisation has helped us in the first half of 2008 and will remain an integral element of our planning,” said Olaf von Lehmden. The Executive Board sees huge growth potential also in the expansion of the own plant operations, which generate high margins. At the end of June, 22 modules with a rated electrical output of 10.9 MW were in operation or under construction. Another 20 MW are in the approval phase and are scheduled to enter construction stage before the end of the year.

Kunibert Ruhe, CTO of EnviTec Biogas, provided an insight into the company’s research and development activities. Besides the company’s plans to make the processing of fermentation residues and the gasification of solids standard features, he provided information on the Technology Centre in Lohne, which will focus on further research and development of biogas. In addition to a biogas plant that will refine biogas to natural gas standards and feed it into the natural gas grid, a training centre with a research lab and a biogas filling station are being built on the site. The refinement of biogas to natural gas standards plays an important role in the company’s R&D activities but also in its growth strategy. “Biogas can replace conventional natural gas, which is another major advantage over all other alternative forms of energy. It will therefore play a key role in Germany’s future energy supply, as this is the only way to reduce our dependence on energy supplies from abroad,” Kunibert Ruhe explained. The current project in Güstrow shows that EnviTec Biogas masters this technology, as the company has won a contract for the construction of the world’s largest plant for the refinement of biogas to natural gas standards.

Following the Bundesrat’s decision to amend the German Renewable Energy Act (EEG), the company published its projections for the full financial year. CFO Jörg Fischer provided a look back on 2007 and an outlook on 2008 and 2009. “Now that a clear legal framework is in place in the German biogas market, we expect a strong boost, in which we will participate accordingly.” While the beginning of the year was as difficult as had been expected, the company projects sales of EUR 105 to 115 million and EBIT of between EUR 5 and 8 million for the full financial year. “The positive performance in the second half of the year will continue in 2009, leading to strong sales and earnings growth.” The positive forecast is based on the company’s order backlog, which amounted to EUR 190.8 million as of 30 June 2008, including EUR 55.5 million in foreign orders. Fischer once again highlighted the company’s financial strength, which will enable it to continue its national and international expansion. As of 31 March 2008, EnviTec Biogas had liquid funds totalling EUR 111.6 million.

“The Annual General Meeting has endorsed our strategy of seizing appropriate opportunities in Germany and abroad with a view to pushing ahead our organic growth. Internationality has been and will remain one of our key strengths,” said Olaf von Lehmden.

EnviTec Biogas AG covers the entire value chain for the production of biogas - including the planning and turnkey construction of biogas plants as well as their commissioning. The company provides the biological and technical service and also offers the full plant and operating management. In addition, the company also operates its own biogas plants. In Penkun, in the German state of Mecklenburg-Western Pomerania, EnviTec constructed the world's largest biogas park with an electrical connected load of 20 megawatts. Today, the company is represented in more than 14 countries throughout Europe and as well in China and India. In 2007 EnviTec generated revenues of EUR 132 million and EBIT of EUR 18 million. The EnviTec Group has about 280 employees. Since July 2007 EnviTec is listed on the Prime Standard segment of the Frankfurt Stock Exchange.

Investor Relations:
Joanna Rode
EnviTec Biogas AG
Tel: +49 44 42 80 65-118
E-Mail: ir@envitec-biogas.de

Press contact:
Fabian Lorenz, Grit Pauli
HOSCHKE & CONSORTEN Public Relations GmbH
Tel: +49 40 36 90 50-56 /-31
E-Mail: f.lorenz@hoschke.de, g.pauli@hoschke.de

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