14 NOVEMBER 2007

APPLIED INTELLECTUAL CAPITAL
(“AIC” or “the company”)

PRELIMINARY RESULTS FOR YEAR ENDED 31 JULY 2007
|Full pdf version available here.

| Download full annual report pdf.

| Download notice of annual meeting of shareholders pdf.

| Download AIC's previously released Admission Document (published January 2007).pdf

AIC funds, develops, patents and commercializes electrochemical and advanced separations technologies in clean energy, electricity storage, water treatment, metals recovery and other emerging markets.

HIGHLIGHTS

• US$35.5 million raised through successful listing on AIM

• Significant investment in new staff, equipment and facilities:
  60 percent increase in technical staff
  70 percent increase in additional laboratory, engineering and rapid-prototyping space
  
  
• Significant progress made in commercialising metals extraction technology: agreement reached with Weatherly International plc to recover metal from mine tailings in Namibia

• Successful testing of Metal Mediated Redox process to produce synthetic biofuels from low-cost organic feedstocks

• Acceleration of thin-film battery technology for use in motorsport, hybrid vehicles and other applications

• Strong balance sheet provides platform to accelerate further project development

• Cash at 31 July of US$22.8 million

• Proposed Transaction (“RedOx”) as a wholly owned subsidiary to commercialise the Metal Mediated Redox process

• Agreement reached in principle for RedOx to be acquired by an AIM-listed cash shell with US$7m of cash and liquid assets on its balance sheet, a transaction which will constitute a Reverse Takeover under the AIM Rules

Stephen Clarke, Chief Executive of AIC, commented:

“This is the year when AIC’s founders turned their vision into reality.  We always knew it was possible to build a business that could convert strong intellectual capital into meaningful commercial applications, based on our unique expertise in electrochemistry.

“Through our achievements this year, we have demonstrated the model, more swiftly and efficiently than traditional routes of IP commercialisation.  We believe we have only scratched the surface of the value that can be extracted from our technology.  We are all looking forward to the coming year with confidence and enthusiasm.”

For further information, please contact:

Applied Intellectual Capital:
Dr. Stephen Clarke
Tel. +1 925 639 9399

Pelham Public Relations:
Archie Berens
Tel. +44 (0)207 743 6679

Nabarro Wells:
Marc Cramsie / John Wilkes
Tel. +44 (0)207 710 7400