Disenco Enters into a Joint Venture with Canada's Hunter Group

December 1, 2008 8:30 AM EST

SHEFFIELD, United Kingdom--(BUSINESS WIRE)-- Disenco Energy plc (Toronto TSX Venture Exchange "DIS.V"), a UK-based provider of highly-efficient micro-combined heat and power (m-CHP) appliances, today announces that it has entered into an agreement with a Canadian investment group called the Hunter Group covering the manufacture and commercialisation of its energy-saving appliances in North American markets.

The Hunter Group sought to invest in Disenco Energy because of the massive revenue streams that its world leading microgeneration combined heat and power (m-CHP) appliance could generate in North American markets. Called the HomePowerPlant (HPP), the patented appliance transforms energy consumers in the home and office into energy producers and cuts their carbon footprint by up to a remarkable 66% per annum. No other alternative energy product has such a deep impact on the environment.

Disenco's unique enabling m-CHP technology built into the HPP as an integral part allows all of the green electricity generated in the home or office to be measured and metered prior to use or exported into the national grid. It also allows for other additional clean power generation products and solutions to piggy back on Disenco's installed unit.

Under the terms of the Agreement, the Hunter Group will invest CDN $9 million in Disenco for common shares of Disenco at share prices to be agreed to own 50% of a new company to be created by the two companies called Disenco North America ("DNA"). The new company will commercialise Disenco's HomePowerPlant (HPP) product to residential and business owners uniquely in North America. The $9 million will be paid in 3 tranches.

Upon execution of the Agreement, the Hunter Group will raise CDN $4,000,000 for common shares of Disenco at $0.18 per share in compliance with the rules and regulations of the TSX Venture Exchange. CDN $350,000 of the CDN $4,000,000 is to be paid to Disenco within seven days, CDN $2,650,000 within 21 days, and the remaining CDN $1,000,000 within 42 days.

Upon Disenco having initial units ready to enter into field trials with one or more of its distribution partners, utilities Endesa or Centrica/British Gas (estimated to occur not later than July 15th 2009), the Hunter Group shall raise a further CDN $3 million for investment into Disenco for units consisting of one common share of Disenco and one common share purchase warrant of Disenco.

Upon Disenco having extended field trials underway with one or more of Endesa, Centrica/British Gas or the National Grid (estimated to occur not later than September 15th 2009), the Hunter Group shall raise a further CDN $2 Million for units of Disenco, each unit consisting of one common share of Disenco and one common share purchase warrant of Disenco.

Each common share purchase warrant shall entitle the holder to purchase one additional common share of Disenco for two years from the date of issuance. The units shall be offered at the price per share and the share purchase warrants shall be exercisable at a price mutually agreed between the companies and in accordance with the rules and regulations of the TSX.

In consideration of the services to be provided by the Hunter Group, the Hunter Group shall be entitled to a 50% ownership interest in DNA. If less than CDN$9 million is raised by the Hunter Group, its ownership interest in DNA shall be calculated on the basis of 50 percent of the total amount raised divided by $9 million.

The Hunter Group shall raise funds for DNA of not less than C$500,000 and Mr. Doug Hunter (see below) is appointed CEO of the new business unit, Disenco North America.

Tony Caplin, chairman of Disenco Energy plc, comments: "This Agreement with the Hunter Group provides Disenco Energy with a solid financial and executive platform to deploy its pioneering green energy technology and products into the lucrative North American markets. We congratulate Doug Hunter on his appointment and look forward to benefiting from his industry expertise and market knowledge."

Disenco also announces today the resignation of Mr. John Gunn from the Company's board of directors. The board wishes to express its thanks to Mr. Gunn for his contributions to the Company's development.

About Doug Hunter

Doug Hunter is a highly experienced business leader and developer in the energy markets. His extensive career includes a tenure as Vice President Operations of Pragma Engineering and Pragma Drilling Equipment Ltd., where he successfully transitioned the company from a non-profitable start-up in 2002 to an engineering, manufacturing and service company of close to 90 people with revenues of CDN $60 million by Q4 2006. The company was purchased by Nabors Industries, Inc. in May, 2006 and renamed Canrig Drilling Technology Canada Ltd.

About Disenco Energy plc

Disenco is a home energy green power source alternative company focused on distributing a low-cost, highly efficient, green-alternative to heat and hot water production. Its unique HomePowerPlant (HPP) appliance will enable homeowners and small businesses to dramatically reduce their annual energy bills by approximately 35% per annum, while shrinking its household annual emissions (carbon footprint) by up to 66%. The Company's flagship product, the Disenco HPP - a micro combined heat and power appliance (m-CHP) - will give consumers the chance to produce all their heating and hot water needs from a single source point, with all surplus energy produced automatically re-sold to their respective city's power grid; thus, generating a home energy cost payback. For further information regarding the Company, please visit www.disenco.com.

Safe Harbor Forward-Looking Statements

Statements contained in this release that are not strictly historical are "forward-looking statements." Such forward-looking statements are sometimes identified by words such as "intends," "anticipates," "believes," "expects" and "hopes." The forward-looking statements are made based on information available as of the date hereof, and the Company assumes no obligation to update such forward-looking statements. Editors and investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause the Company's actual results to differ materially from those in these forward-looking statements. Such risks and uncertainties include but are not limited to demand for the Company's products and services, our ability to continue to develop markets, general economic conditions, our ability to secure additional financing for the Company and other factors that may be more fully described in reports to shareholders and periodic filings with the governing bodies of Canada.

Disclaimer

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

    Source: Disenco Energy plc

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