AXS Accsys Technologies Plc

RNS Number:1418D
Accsys Technologies PLC
03 September 2007


3rd September 2007   AIM: AXS


        Accsys announces 500,000 m3 License Option Agreement for China.


Accsys Technologies PLC ("Accsys" or "the Company") announces that its 100%
owned subsidiary, Titan Wood Ltd., has signed a licence option agreement with
Skanfore China S.A. ("Skanfore China"), a subsidiary of Skanfore S.A.("Skanfore
"), in respect of rights to manufacture AccoyaTM in the People's Republic of
China for a nameplate capacity of 500,000 cubic metres of production of
AccoyaTM wood.



The terms of the license option agreement provide twelve months during which
Skanfore China enjoy exclusive rights to enter into a technology license with
Titan Wood Limited for the licensing of AccoyaTM production capacity within the
People's Republic of China.  Upon exercising the option, Skanfore China has one
month to sign a Technology License for the nameplate capacity.  If Skanfore
China fails to exercise its option under the agreement or does so in respect of
a smaller capacity, it loses the territorial exclusivity granted under the
agreement.  Skanfore China is paying a premium of Euro500,000 (Euro1 per cubic metre
of nameplate capacity) in consideration of the one year exclusivity, which sum
will be deductible from the list price of Euro200 per cubic metre of nameplate
capacity payable under any Technology License entered into within the period of
the license option agreement.



Willy Paterson-Brown, Executive Chairman, of Accsys commented, "Accsys is
delighted by the rapid success of the agency arrangement entered into with
Skanfore in June.  Whilst much hard work remains to be done before the parties
will be ready to sign a Technology License, this early commitment bodes well for
a substantial licensing of capacity over future years.  Whilst the potential
appetite for AccoyaTM within China is enormous, Accsys is very conscious that it
is imperative that its intellectual property be fully respected in all its
markets and this relationship gives us confidence regarding this issue".



David Popejoy, Managing Director of Skanfore said: "The China market offers
exceptional potential.  China currently consumes huge volumes of tropical
hardwood and despite vigorous economic growth, imported volumes of tropical
hardwood are already beginning to fall as availability reduces.  Skanfore China
offers strategic benefits to the Chinese economy - as the use of AccoyaTM will
mainly be in substitution of environmentally insensitive tropical hardwood,
softwoods treated with toxic chemicals or uPVC and aluminium - in both cases
helping reduce the reliance on more energy intensive raw materials.  Skanfore's
discussions with potential partners have rapidly led to conclude we must secure
maximum rights as a matter of urgency, hence we have now committed our entire
agency rights through our Chinese subsidiary and are in discussion with Titan
Wood to extend our commercial relationship with them."



The Company officially opened the world's first commercial production facility
manufacturing commercial volumes of AccoyaTM wood at its subsidiary in The
Netherlands in May.







ENDS



For further information, please contact:






Accsys Technologies PLC                  William Paterson-Brown,               +44 (0) 20 8144 2510
                                         Executive Chairman



Collins Stewart Europe Limited           Tim Mickley / Michael O'Brien         +44 (0) 20 7523 8000
Parkgreen Communications                 Justine Howarth                       +44 (0) 20 7851 7480






Notes to Editors



Skanfore LLC (www.skanfore.com) is a privately owned, diversified trading
company, based in Abu Dhabi, UAE, with interests in mining, engineering,
construction, finance and environmental projects. Skanfore China is a subsidiary
of Skanfore S.A. a BVI company.



Titan Wood Limited (www.titanwood.com) is a wholly owned subsidiary of the
Accsys Technologies PLC (www.accsysplc.com) group of companies. Accsys
Technologies PLC is listed on the London Stock Exchange AiM market under the
symbol 'AXS'.



Wood Acetylation is a process, which increases the amount of 'acetyl' molecules
in wood, thereby changing its physical properties. The process protects wood
from rot by making it "inedible" to most micro-organisms and insects, without -
unlike conventional treatments - making it toxic. It also greatly reduces the
wood's tendency to swell and shrink, making it less prone to cracking and
ensuring that when painted it requires dramatically reduced maintenance.



AccoyaTM wood (www.accoya.info) is produced using a patented process that
effectively converts sustainably grown softwoods and non-durable hardwoods into
what is best described as a 'new wood species'. Distinguished by its durability,
dimensional stability and, perhaps most importantly of all, its reliability (in
terms of consistency of both supply and quality), AccoyaTM wood is particularly
suited to exterior applications where performance and appearance are valued.
Unlike most tropical and European hardwoods, its colour does not degrade when
exposed to ultraviolet light. Moreover, the AccoyaTM wood production process
does not compromise the wood's strength or machinability. The combination of UV
resistance, dimensional stability, durability and retained strength means that
AccoyaTM wood offers a wealth of new opportunities to architects, designers and
specifiers. For marine uses where weight is also important, AccoyaTM wood for
the first time provides boat builders with a wood that is strong, lightweight,
durable and which retains its natural beauty for far longer.



ACCOYA is a registered trademark owned by Titan Wood Limited


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