AGO AG Energie + Anlagen expanding to Italy

+++ Establishment of AGO energia Turin (Italy)

+++ Construction and operation of biomass combined heat and power stations with electricity generation, heat generation and refrigeration in Italy

+++ Annual sales of EUR 3.0 million to EUR 4.0 million per system expected from operation

Kulmbach, 21 November 2007: AGO AG Energie + Anlagen (security identification number: A0LR41; ISIN: DE000A0LR415) announces the formation of AGO energia, Turin, following a resolution of the Supervisory Board. The operational objective of the new company in Italy is the construction and operation of biomass cogeneration plants. The main focus is on tapping into the market for trigeneration, which has great potential in Italy as a result of the energy mix.

55% of the shares in the Italian project company will be held by AGO AG Energie + Anlagen. Investors Roberto Sacco and Paolo Gioia will be 45% joint shareholders of AGO energia Turin. Roberto Sacco will take on the management of AGO energia. AGO AG Energie + Anlagen is to provide the expertise for production of absorption refrigerators as well as the turnkey construction. Sales will be carried out via a cooperation with Pro Ambiente srl. Plaus (Bozen). Pro Ambiente is a planner of biomass cogeneration plants/ biomass heating stations, and has a long-established, broad-based sales structure in Italy.

The new Italian company, based in Turin, plans to implement energy projects with an investment volume of EUR 6.0 million to EUR 10.0 million per year. Annual sales of EUR 3.0 million to EUR 4.0 million per biomass cogeneration plants/ biomass heating stations are expected from operation of the systems.

The Italian market offers long-term potential for AGO AG Energie + Anlagen, chiefly because of the current amendment of the Italian feed-in tariff for electricity generated from biomass. At up to 29.5 cents per kWh fed into the public mains power supply, this is well above the current tariff level in Germany. In Italy, AGO stands out chiefly through the use of cold from heat that arises in electricity generation and has not yet been used.

“As specialists in innovative and efficient energy supply systems, we have been monitoring the Italian market for biomass cogeneration plants/ biomass heating stations for some time. With Italy’s statutory target of increasing the proportion of renewable energy from the current level of 7% to 22% by 2012, we have set the course for our future corporate growth by establishing AGO energia, Turin. We hope to announce our first energy project in Italy as early as the first half of 2008”, says Helmut Peetz, COO of AGO AG Energie + Anlagen.

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from left:
Helmut Peetz, COO AGO AG Energie + Anlagen
Roberto Sacco, Managing Director AGO energia
Hans Ulrich Gruber, CFO AGO AG Energie + Anlagen

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About AGO AG Energie + Anlagen

AGO AG Energie + Anlagen, with its registered office in Kulmbach, was founded in 1980 and is specialized in the area of innovative and efficient energy supply facilities for industrial customers and municipalities. Main focus of AGO AG Energie + Anlagen is laid on the following business divisions: plant development and implementation, as well as service and consulting. The core competence of the company mainly commits to thermal power stations, to heating, cooling and ventilation technology plant construction, biomass cogeneration plants and trigeneration. Site studies and development, consulting in energy efficiency, resource and fossil fuel management as well as emission trade management – these factors complete the business model. AGO symbolizes efficiency, security and technological competence of your energy supply facilities.