Establishment of Cycleenergy Logistics

Vienna, April 8, 2008

Cycleenergy Beteiligungs- und Management AG established Cycleenergy Logistics GmbH on April 8, 2008. Cycleenergy Logistics will act as a 100% subsidiary of Cycleenergy Beteiligungs- und Management AG and will manage the entire  group’s raw material purchasing. To optimize raw material quality and pricing Cycleenergy Logistics will concentrate on three core strategies:

• Ensuring continuous supply of materials to the operating plants with Just-in-Time delivery.
• Consolidating raw-material volumes within one company thereby optimizing working capital.
• Providing reliable short payment terms to biomass suppliers, thereby achieving better long term pricing conditions than competitors who pay suppliers on much longer payment terms.
  

Cycleenergy Logistics will manage more than 90.000 AMM (dry tons) in 2008 and plans to expand these quantities to more than 200.000 AMM by 2010.

The company will be managed by Mr. Roman Fink and Mr. Stephan Schuster.