AIC Trading Update
03.10.08

3. PLURION – BATTERY TECHNOLOGY   

AIC is now able to bring additional technologies from its other programs to Plurion.  Initially, these include the new high performance foil electrode announced above and the development of a new Methane Sulfonic Acid (MSA) based electrolyte.  Both of these potentially represent significant technological advances for Plurion.

The new foil electrode utilizes a proprietary conductive glass coating, which AIC has developed with the help of its strategic partners.  This new conductive glass coating not only possesses exceptional conductivity but is resistant to corrosion and compatible with a range of catalysts.  Although this foil electrode is in the development stage, an early “proof of concept” version is already operating successfully at full size in a pre-production electrolyser at Plurion’s Glenrothes facility.  The proof of concept version has thus demonstrated the compatibility of foil electrodes with Plurion’s existing electrolyser designs and chemistries.

The new proprietary MSA based electrolyte provides the long term potential to achieve substantially higher energy storage densities with lower overall complexity than is possible with other flow battery chemistries.  Importantly, this new electrolyte requires only one electrolyte circuit and eliminates the need for membranes and catalysts. 

Mike Woodroffe, Chairman of Plurion, commented:

“In order to exploit sources of intermittent renewable energy the electricity industry desperately needs to be able to store electricity. Once commercialized, our technology is expected to provide an economically viable means for doing so.  These additional technologies significantly expand Plurion’s potential product portfolio and will help Plurion to develop the highest performing and most reliable family of high capacity storage technologies.  "

Stephen Clarke, CEO of AIC added:

“The ability to share technological advances across our projects and ventures is central to AIC’s value model.  By bringing technologies to Plurion from other projects, we are increasing the potential to reduce Plurion’s product development cycle and accelerate commerciality.”

4. RedOx – BIOFUELS

RedOx biofuels is pleased to announce the completion of an independent review of its ethanol feed stock synthesis by Lifecycle Associates of California.  This review has confirmed the viability and cost effectiveness of RedOx’s proprietary technology for the production of ethanol from sewage waste and rice straw.  A synopsis of the report is available here or If you would like access the full report, please email enquiries at Redox Biofuels.

With initial characterization of its ethanol feedstocks completed, negotiations are underway for demonstration sites with rice straw and sewage waste feedstocks.  Work has also begun on the synthesis of higher value fuels, bio-degradable plastics and water treatment chemicals from waste.

Kim Ogaard Nielsen, CEO of RedOx, noted:

“RedOx has successfully demonstrated and validated the feasibility of producing ethanol commercially from two of the world’s most intractable waste materials, using its proprietary technology.  As we begin the synthesis of higher value fuels and polymers from waste material feedstocks we are proving the value of RedOx’s value proposition.”

In separate developments, Applied Intellectual Capital (“AIC”) (AIM: AINC) and Aspen Clean Energy are jointly announcing the termination of the proposed merger of Aspen with RedOx Biofuels.  Despite the best efforts of all concerned, it was found to be impossible to deal effectively with a restrictive covenant that Aspen is subject to.  This decision does not materially impact RedOx’s business.

Costs, which are not estimated to be significant, will be borne by the parties incurring them as per the terms of the MOU.

Stephen Clarke, CEO of AIC, noted:

“While legal advice was that Aspen’s restrictive covenant was unenforceable under EU law, this still represented a potential financial risk to RedOx and could have exposed Aspen’s shareholders to unreasonable liability.”

Keith Smith, Chairman of Aspen, commented:

“While the Board of Aspen was enthusiastic about RedOx’s technology, we had to conclude that the proposed merger presented an unacceptable risk of breach for certain of Aspen’s shareholders.”

continued

| 1 | 2 | 3 |