AIC Joins AIM
1.26.07

APPLIED INTELLECTUAL CAPITAL
("AIC" or "the Group")

£20 MILLION OF NEW FUNDS RAISED
MARKET CAPITALISATION OF £40.2 MILLION

AIC is an investor in and developer of electrochemical technologies. Its
objective is to commercialise intellectual property and create value either by
generating licensing income or by establishing businesses and selling shares in
those businesses in order to realise a capital gain.

AIC focuses on the development and commercialisation of electrochemical
solutions to water purification, mine waste treatment, energy storage, renewable
energy, and sustainable resources.

AIC is pleased to announce that it has raised £18.3 million of new funds (net of
expenses) via a placing of 21million new ordinary shares with a range of
institutional investors. Admission has been sought for a total of 42,268,528
ordinary shares to be admitted to trading on AIM. Dealings are expected to
commence at 8.00am today. AIC's market capitalisation at the placing price is
£40.2 million. No existing shares are being sold.

The net proceeds of the Placing will be used to further the development of AIC's
more advanced business streams and other projects, on capital expenditure in the
USA and UK , on working capital, and to repay promissory notes.

AIC's Nominated Adviser is Nabarro Wells and the Broker is Mirabaud Securities.

The Placing statistics are set out below:

Placing Price 95 p

Number of Common Shares in issue before the Placing and Admission 21 million

Number of Placing Shares 21 million

Number of Common Shares issued in respect of promissory notes 268,528

Number of Common Shares in issue following the Placing and Admission 42,268,528

Gross proceeds of the Placing available to the Company £20.0 million

Estimated net proceeds of the Placing available to the Company £18.3 million
(after deducting the expenses of the Admission and Placing)

Proportion of the enlarged issued Common Share capital being placed 50%

Market capitalisation at the Placing Price on Admission £40.2 million

On Admission, the following shareholders (other than Directors) will own shares
representing more than 3 per cent of the share Capital on Admission:

Name No. of Ordinary % of share
Shares held upon Capital held upon
Admission Admission
Credit Suisse Client Nominees (UK) Limited 3,158,000 7.47%
NW Browne Nominees Limited 1,895,000 4.48%
Harrier Holdings Limited 1,598,500 3.78%
Nutraco Nominees Limited 3,189,240 7.55%
Credit Suisse Securities Europe Limited 3,158,000 7.47%

Dr. Stephen Clarke, Chief Executive of AIC, commented:

"We have technologies in our portfolio which have already attracted the
attention of a range of industrial users and are confident that we can
accelerate technology commercialisation. We are very pleased that investors
have chosen to share our vision of applying science towards enhancing
efficiency, saving energy and reducing waste whilst simultaneously growing
shareholder value."

FOR FURTHER INFORMATION PLEASE CONTACT

Applied Intellectual Capital
Dr. Stephen Clarke Tel. +1 510 463 0211

Mirabaud Securities Limited
Tel. +44 (0)20 7321 2508
Peter Krens

Nabarro Wells & Co. Limited
Tel. +44 (0)20 7710 7400
Marc Cramsie
John Wilkes

Pelham Public Relations
Charles Vivian Tel. +44 (0)20 7743 6672 / +44 (0)7977 297903
Archie Berens Tel. +44 (0)20 7743 6679 / +44 (0)7802 442486

FURTHER INFORMATION ON APPLIED INTELLECTUAL CAPITAL

The information below is extracted from AIC's Admission Document, copies of
which are available from Nabarro Wells & Co. Limited.

Introduction

AIC was founded in 1999 as an incubator and investor in electrochemical
technology. Its objective is to commercialise intellectual property and create
value by generating licensing income, as well as by establishing businesses and
selling shares in those businesses in order to realise a capital gain.

AIC finances the development of electrochemical technologies and focuses on the
development and commercialisation of electrochemical solutions to water
purification, mine waste treatment, energy storage, renewable energy, and
sustainable resources. The processes it uses are advanced separations,
Reduction-Oxidation (RedOx) systems, advanced electrodes and membranes.

The Directors believe that AIC's electrochemical technologies and commercial
successes to date have made it an attractive alternative to conventional venture
capital funding of applied sciences, in part because AIC's model, in the view of
the Directors, is less capital intensive than classic venture capital
structures. The Directors also believe AIC can achieve a comparatively faster
incubation timetable and an earlier revenue stream by providing a proof of
concept at an early stage in the development process.

Strategy

The Group's strategy has been, and will continue to be, focussed on the building
of a portfolio of businesses based on established electrochemical processes
protected by a robust IP position, from which it will eventually seek to exit by
way of a trade sale, or through an initial public offering with subsequent share
sale. In appropriate cases, the Group will pursue an IP licensing strategy.

Once each project reaches the stage where the Directors believe it would benefit
from a larger dedicated management team to strengthen its development, it is
their intention to develop this into a business stream and identify and
gradually recruit appropriately-qualified team members.

Concurrently with the development and commercialisation process, AIC endeavours
to protect the IP position for each technology or project through the filing of
appropriate patent applications, many of which are filed in the USA, Europe and
elsewhere. The Group has a demonstrable track record in the successful patenting
of electrochemical processes.

Group Structure

The Group is comprised of AIC and its two US subsidiaries, being AIC Labs, in
which it holds a 100% interest, and Plurion Systems Inc ("PSI"), in which it
holds a 75% interest. In addition, PSI holds a 100% interest in Plurion Limited
("Plurion"), a Scottish company. Plurion is currently funded predominantly
through agreements with ITI, which effectively controls Plurion. Plurion owns
the exclusive rights to a type of Flow battery (or RedOx battery) developed by
AIC based on cerium, zinc and Methane Sulfonic Acid (''MSA''). This technology
is currently being developed for commercialisation.

Management

Members of the Board and certain senior executives have extensive operational
experience in commercialising electrochemical technologies both in the UK and
USA.

As at the date of this document, there are eight directors of AIC, including
four non-executive Directors all of whom are considered by the Board to be
independent.

Sir Andrew Likierman, the non-executive chairman of AIC, is also a non-executive
director of both the Bank of England and Barclays Bank Plc. He is also a
professor of management practice in accounting at London Business School.

Stephen Clarke, the Chief Executive Officer of AIC, has extensive experience in
the development, funding and commercialisation of engineering and applied
science based technologies. He worked in the design, engineering and advanced
manufacturing of aerospace gas turbines at Rolls Royce. He led a joint British
Telecom and Aston University team which developed and implemented one of the
world's first graphical user interface-based enterprise management software
systems for which he was awarded a PhD in computer simulation and business
policy design. He also spent several years in management consulting, first with
BDO Binder Hamlyn and then with Gemini Consulting.

Robert Clarke, the Chief Technical Officer of AIC, is a committed electrochemist
and electrochemical engineer. His expertise is in processes, materials and
device innovations. Robert's early career encompassed substantive periods in
organic chemical synthesis, advanced batteries and fuel cells, advanced clean
fuels and water purification and re-use. Robert has acted as a consultant for
such international companies as EPRI, HydroQuebec, Hughes Aircraft, Lockheed,
DOE, ICI and Exxon. He is a Fellow of the Royal Society of Chemistry, a member
of the American Chemical Society, a member of the Electrochemical Society and a
member of the International Society of Electrochemistry.

Darron Brackenbury, the Chief Operating Officer has managed AIC's product
engineering, rapid prototyping and early sales functions. Darron helped
establish AIC's licensing and technology transfer functions, and he leads AIC's
mining process group. Darron has extensive experience in technology transfer.

James Weir, a non-executive director, was a co-founder of Duke Street Capital,
and has a 20 year career in the venture capital and private equity business.

Anthony Amor, a non-executive director, has extensive experience in advising
early stage and expanding companies, in particular in the areas of strategic
planning, business development and financing, and has served as a director of a
number of public, privately held and professional organisations. In 2003, he
was appointed CEO of ITI Energy Limited, also serving as a director of the
parent organisation, ITI Scotland Limited. He stepped down from these positions
at the end of 2005, but continues to serve as a senior advisor to ITI Energy
Limited and as an ITI-appointed director of Plurion Limited.

David Thompson, a non-executive director, has extensive experience in resource
development, engineering solutions and business development. He is a member of
the Professional Engineers, Geologists and Geophysicists of Alberta. He worked
as an engineer for Schlumberger and Nova Corporation. He was then appointed CEO
of Port Albert Wind Farms, a renewable energy business, in 2002, which was
profitably sold to EPCOR in 2005.

Current Trading and Prospects

In the year ended 31 July 2006, the Group generated revenues of US$5.1 million,
including US$4.4 million from Plurion Limited (a company owned by AIC but
controlled by ITI), and generated a net profit on ordinary activities before
taxation of approximately US$0.9 million. As at 31 July 2006, the Group had cash
reserves of approximately US$0.8 million.

Apart from EverClear (mine waste recovery), XANA-N (removing nitrate from
drinking water) and SIRS (removing arsenic from drinking water) all of the
remaining technologies, projects and business streams of the Group are at the
pre-revenue stage. AIC intends to continue to support the business streams
through to the final stage of exit for AIC. AIC may allow other investors to be
introduced and to invest directly into future incorporated business streams
should appropriate terms be agreed, thus reducing AIC's percentage shareholding
during any funding process. The Directors anticipate that AIC will not be
required to provide substantial further funding into its projects and business
streams. However, should further funding be required, the Directors believe that
they should be able to attract third party equity or debt funding within an
appropriate timescale.

Placing and Use of Proceeds

Mirabaud has conditionally placed with investors, as agent for the Company, the
Placing Shares which represent, in aggregate, approximately 50% of the issued
share capital of the Company on Admission. At the Placing Price, the Company
will be valued at approximately £40.2 million upon Admission. The Placing
proceeds receivable by the Company amount to approximately £20.0 million before
expenses. The net proceeds of the Placing receivable by the Company amount to
approximately £18.3 million or approximately US$35.5 million (after the expenses
of the Placing). The Board is proposing to utilise the net proceeds of the
Placing in order to further the development of the more advanced business
streams (US$10.0 million), other projects (US$15.0 million), capital expenditure
in the USA and UK (US$5.0 million), working capital (US$5.0 million), and to
repay US$0.5 million of promissory notes.

Advisers

AIC's Nominated Adviser is Nabarro Wells and the Broker is Mirabaud Securities.

Placing Statistics

The Placing statistics are as follows:

Placing Price 95 p

Number of Common Shares in issue before the Placing and Admission 21 million

Number of Placing Shares 21 million

Number of Common Shares issued in respect of promissory notes 268,528

Number of Common Shares in issue following the Placing and Admission 42,268,528

Gross proceeds of the Placing available to the Company £20.0 million

Estimated net proceeds of the Placing available to the Company £18.3 million
(after deducting the expenses of the Admission and Placing)

Proportion of the enlarged issued Common Share capital being placed 50%

Market capitalisation at the Placing Price on Admission £40.2 million

Directors' and Significant Shareholdings

On Admission, the Directors' shareholdings in the Company will be as follows:

Director Position No. of Ordinary % of share
Shares held Capital held upon
upon Admission Admission

Andrew Likierman Non-Executive Chairman 53,000 0.13%
Stephen Clarke Chief Executive Officer 7,000,000 16.6%
Robert Clarke Chief Technical Officer 7,000,000 16.6%
Darron Brackenbury Chief Operating Officer 7,000,000 16.6%
Robert Stoffregen Chief Financial Officer - -
James Weir Non-Executive Director 52,000 0.12%
Anthony Amor Non-Executive Director 37,500 0.09%
David Thompson Non-Executive Director 42,000 0.10%

This information is provided by RNS
The company news service from the London Stock Exchange.