AGO AG stepping up international expansion in Africa

• New sales cooperation with local partner
• Mid-term annual revenues of € 5 million anticipated
• Risks due to distribution costs reduced with a tried and tested market access strategy

Kulmbach, 8 April 2010: AGO AG Energie + Anlagen (WKN: A0LR41, ISIN: DE000A0LR415) is increasing its international expansion efforts on the African continent. In order to gain access to new markets, it has now signed a cooperation agreement with Dematech (PTY) Ltd., Constantia, South Africa.

A benefit of the sales cooperation with Dematech is that AGO AG has considerably reduced risks related to distribution costs in Africa, especially as Dematech has been successfully conducting business there for several decades. At the beginning of 2008, AGO AG had already collaborated with Dematech after gaining a turnkey contract from Heineken brewery for an energy centre worth € 3.8 million. Based on their previous successful and mutually trusting project collaboration both companies agreed to the new long-term sales cooperation. AGO AG’s operational objectives in Africa include the planning and construction of industrial energy supply facilities. We anticipate generating annual revenues of € 5 million in the mid-term.

“Entering into a sales cooperation with a local partner let us rely on a market access that has already proven its worth,” explains Hans Ulrich Gruber, CEO of AGO AG Energie + Anlagen. “We are concentrating our efforts in Africa on developing the market for energy efficiency projects and for the medium-sized industry, because local electricity prices suffer from lasting and significant increases, which in turn lead to a rising demand for German know-how,” he points out.

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.