2G establishes first Biogas CHP Cogeneration System Factory in the US creating 125 Clean Energy Jobs

This new U.S. production facility in St. Augustine, Florida, will start to produce its advanced biogas CHP (combined heat & power) clean energy conversion systems for all North & South American markets.

Orange Park, FL March 30th 2012 - 2G CENERGY Power Systems Technologies Inc., a 2G Energy AG Group Company announced today that it received more US based orders during the past few months than during the entire fiscal years of 2010 and 2011 combined. Based on that significant development 2G decided to establish a U.S. production facility in St. Augustine, Florida, where it will start to produce its advanced biogas CHP (combined heat & power) clean energy conversion systems for all North & South American markets. The decision is considered to be a major component of the company's overall U.S. strategy to enforce its customer service commitment, further increasing its competitiveness, and rapidly growing its American customer base.

"The U.S. biogas market is an important part of our group strategy and we are now very vigorously accessing that market," said Michael Turwitt, President & CEO of 2G-CENERGY. "The 2G Group will be extremely active here, and this new U.S. manufacturing plant represents a milestone in 2G's history. Our growing number of U.S. orders justifies this multi-million dollar investment. We are already very successfully selling our modular biogas CHP systems all over the U.S., and this new production site will play a key role. Advanced and all-in-one CHP modules are an important prerequisite for the implementation of new biogas projects. We noticed a clear shift in the market from outdated technologies created in the 1970's and 80's towards modern commercially available and proven systems. These new standards have a positive impact on new biogas projects and therefore many U.S. developers are now aiming to bring more of those projects online, which are much more comparable to the thousands of biogas facilities proven to be very reliable and adequate from a technological and commercial point of view," he added.

2G-CENERGY in return saw an increase in sales, and was selected as the supplier of choice for a multitude of new projects between 250kW and 3MW. The 2G Group effectively transformed the gained momentum from highly satisfied customers after 2300 installed biogas CHP systems, into new sales to private and public organizations in the United States. Most of these projects are at dairy and livestock farms, municipal waste management facilities, as well as waste water treatment plants and organic waste disposal sites in Wisconsin, Ohio, Michigan, Illinois, Indiana, New York, Pennsylvania, Vermont, Maine, New Jersey, Washington, Oregon, California, and the Carolinas.

"This new manufacturing plant is a significant step forward in achieving our goals for the U.S. biogas market and a clear sign of the 2G Group's commitment to all North & South American customers. Today's decision is a fundamental part of our new strategic direction in the U.S.," said Christian Grotholt, President & CEO of 2G Energy AG in Germany. "St. Augustine, FL is an excellent fit for 2G, having an exceptional quality of life and a long manufacturing tradition. This is a significant investment which positions 2G to maintain its leadership role, and I am thrilled to announce that St. Augustine will be the home of 2G Manufacturing Inc., Grotholt added.

The company purchased a 60,000 square feet facility in the St. Augustine Interstate Commercial Park, located at the I-95/CR-20812 intersection, as well as the adjacent lot for future expansion. The 10-acre site is perfectly located. With the new plant, 2G will bring about 125 new jobs to the area, and will add a significant number of career opportunities in related sectors. This decision will also raise the overall 2G Group production capacity in anticipation of solid growth and increased demand for advanced thermo-dynamical, output-optimized biogas cogeneration CHP (combined heat and power) modules, with a high degree of electrical and thermal energy efficiency. The production capacity for this new facility will be gradually increased.

"The level of new high tech biogas projects being developed in the U.S. shows that the technology is ready to catch up with other industrialized markets in Europe where biogas already plays an important role. In late 2009 we started to introduce a well proven biogas CHP technology that was new for the US target audience. Our systems not only provide higher efficiency, but are overall much more economical for the plant owner. Educating potential customers on the advantages continues to be an important factor", said Turwitt. "We noticed that many more biogas project developers see our technology as game changing, helping to increase the overall project viability and economic factors", he added.

"In the past there was the perception that biogas CHP systems had to be custom built, using a basic gas generator set, and that individualistic, often makeshift solutions are they key to economic feasibility. Exactly the contrary was achieved by ending up with low efficiency designs that quickly failed, and resulted in very high maintenance cost," said Ludger Holtkamp, COO of 2G Energy AG. "Today many more project developers understand that the key to success is to build biogas plants that are of modular design, consisting of highly reliable components and equipment that has been proven thousands of times in highly successful biogas plant installations," he added.

"2G's expansion will greatly benefit Florida as well as St. Augustine, and we welcome this enhancement to both the local and state economy," said Florida Secretary of Commerce Gray Swoope, who serves as president & CEO of Enterprise Florida Inc., the state's principal economic development organization. "We're delighted that Florida will be a larger business base for the 2G Group. The company's choice to broaden its operations here is a response to our supportive climate for business growth and innovation."

In late 2009 the 2G Group outlined a new strategic direction for the U.S. based on four pillars: product, brand positioning, added benefits for customers, nationwide product support, and local production. As the company moved forward to assess the potential for U.S. production, 2G considered many other site options but earlier this year narrowed its search to the St. Johns County, Florida.

"St. Johns County is proud to welcome the 2G Group of Companies," said Melissa Glasgow Director of Economic Development St. Johns County. "The company will add 100-125 professional jobs to the local economy and will complement the growing number of businesses in the County. This is quite an achievement for the 2G Group, and we are very excited about the selection of St. Johns County for such a significant project," said Glasgow.

"The St. Augustine site was selected amongst dozens of locations considered due to its proximity to major ports, a strong regional base of potential suppliers, a positive and pro-active business climate and a good pool of potential employees with manufacturing experience," Michael Turwitt added.

Besides being more efficient, 2G biogas cogeneration systems are designed and manufactured "connection ready". All plants are fully factory tested and come as complete modules. This allows for extremely fast and cost-effective installation, increases product reliability, and assures trouble-free operations. These smart and advanced turn-key technologies have not yet been manufactured in America.

About 2G CENERGY Power Systems Technologies Inc.
Headquartered in Orange Park, FL, 2G CENERGY Power Systems Technologies Inc. is a US Corporation owned by 2G Energy AG (former 2G Bio-Energietechnik AG) Germany, and its US senior management team. 2G is a long-established company publically traded at the Frankfurt Stock Exchange. 2G Energy AG is one of Germany's leading manufacturers of combined heat and power (CHP) systems, with more than 2300 cogeneration plants installed. The company's CHP power plants guarantee extreme high energy efficiency, extracted and generated from biogas, landfill gas, sewage gas, coal mine gas, natural gas, syngas and other specialty gaseous fuels. 2G CENERGY provides technologically advanced and clean systems to generate electricity and heat, while reducing CO2 emissions and greenhouse gases. All plants are designed and manufactured "connection-ready".

More information at: http://www.2g-cenergy.com Contact: Michael J. Turwitt, President & CEO, e-mail: mturwitt@2g-cenergy.com Tel: +1-904-579-3217

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