Heads of Terms agreed

RNS Number:0446U
ReEnergy Group PLC
09 May 2008


                               ReEnergy Group plc
                          ("ReEnergy" or "the Group")

                             Heads of Terms agreed


Further to the update announced on 1 May 2008, ReEnergy announces that it has
entered into non-binding heads of agreement regarding the possible disposal of
its wholly-owned subsidiary, Estech Europe Limited ("Estech") to a company
listed on the Official List of the London Stock Exchange ("Acquirer").

Estech is the Group's only operating subsidiary, and is a developer of
autoclaving technology. In the year to 31 December 2006, Estech reported
unaudited revenue of nil and net loss before tax of #3.9 million.

The key terms of the heads of agreement are, inter alia, as follows:

 - total consideration of up to #1.9 million, payable in cash, subject to
   completion of due diligence;
 - prior to the signing of a sale and purchase agreement in relation to Estech, 
   the Acquirer will fund the Group's daily cash burn of #5,800, up to a maximum 
   of #180,000. Such payments will be deducted from the consideration price on 
   completion of the transaction;
 - a binding sale and purchase agreement, which will be subject to ReEnergy 
   shareholder approval, is targeted to be signed on or before 15 May 2008; and
 - the Acquirer is granted exclusivity regarding the acquisition of Estech for a 
   period of 31 days from 8 May 2008.

The disposal of Estech will require shareholder approval, and a circular will be
dispatched to shareholders as soon as practicable following the signing of the
sale and purchase agreement. As Estech comprises the Group's only operating
subsidiary, the circular will include information regarding the future of the
Group, which is expected to be either the adoption of a revised investing
strategy or an outline proposal to return cash to shareholders and wind up the
affairs of ReEnergy.

A further announcement will be made as appropriate.


Further enquiries:

Roger Hewitt, Non-Executive Chairman                     020 7432 0340
ReEnergy Group plc

Simon Raggett, Chief Executive                           020 7409 3494
Strand Partners Limited





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