RGY Reenergy

RNS Number:1124R
ReEnergy Group PLC
31 March 2008


                               REENERGY GROUP PLC
                         ("ReEnergy" or "the Company")

                     Trading Update and Financial Position


The Board announces that it is currently in discussions with regards to a
potential fund raising to meet its short term working capital requirements.

On 19 December 2007, the Company provided an update on its discussions with
Worcestershire County Council on the details of its proposed 100,000 tonne per
annum capacity autoclaving merchant plant at the Hartlebury site, (the
"Hartlebury Project").  ReEnergy, through its wholly-owned subsidiary, Estech
Europe Limited ("Estech"), is continuing to progress discussions in respect of
the Hartlebury Project with Mercia Waste Management Ltd and Worcestershire
County Council.

The Company is pleased to announce that Estech has signed a consortium agreement
and preferred bidder letter with VT Group plc and Wakefield MBC for the
provision of a 150,000 tonne per annum autoclaving facility. Estech is also in
advanced discussions on a possible third autoclaving plant.

The Company is also pleased to announce that Estech has renegotiated its licence
with Estech USA LLC, bringing with it additional improved technology and
providing an enhanced waste processing solution.

On closing of the various contracts being negotiated, the Directors are
confident that positive cash flows in to the Group will be generated within the
current financial year.

To enable the Company to further these negotiations and continue to trade beyond
April 2008, the Directors are actively pursuing a number of channels to raise
additional short-term working capital.  These options include a fund raising of
circa �1 million which is currently being discussed with a major existing
shareholder and other external funders. Whilst there can be no certainty of
funding, the Company is in receipt of informal approaches and expressions of
interest from several parties which the Directors will be considering in their
review of all the funding options available to the Company.

As part of its overhead reduction programme, ReEnergy has closed and ceased
operations of its water desalination business, ReEnergy Desalination Inc., which
was located in the United States.

A further announcement will be made as appropriate.


For further information, please contact:

ReEnergy Group plc          +44 (0)20 7432 0340
Roger Hewitt

Strand Partners Limited     +44 (0)20 7409 3494
Simon Raggett

Cardew Group                +44 (0)20 7930 0777
Anthony Cardew



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

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