Diamond Wood extends its exclusivity with a license option

25 August 2008

Accsys expands capacity in China as Diamond Wood extends its exclusivity with a license option for an additional 250,000m3

Accsys Technologies PLC (“Accsys” or “the Company”) announces that Titan Wood Limited (“Titan Wood”), its 100% owned subsidiary, has signed a license option agreement with Diamond Wood China Limited. (“Diamond Wood”), in respect of the rights to manufacture Accoya® wood in the People’s Republic of China for an additional nameplate Accoya® wood production capacity of 250,000 cubic metres. Diamond Wood previously signed a License Agreement for 500,000m3 in November 2007.

The terms of the agreement include the rights for Diamond Wood to expand their production volumes to 750,000m3, an increase of 50%, and thereby extend their exclusivity in China until 2018. Financial terms mirror those of the original agreements between the two companies. Greg Lee, CEO of Diamond Wood, said, “Our market analysis and customer feedback shows that there is considerable potential for Accoya® wood in China and we have had our sights set on higher capacity volumes and extending exclusivity for some time now. We are therefore delighted to have signed this further agreement and to have secured these terms.”

Finlay Morrison, CEO of Titan Wood, added, “This is a significant step forward for Accsys in this region as this agreement gives Diamond Wood the opportunity to further consolidate their strong early adopter advantage.”

Released By

Titan Wood Limited