Velcan Holdings

M&A Activity • Sep 28, 2010

Press release

Vientiane, 28th September 2010

SIGNING OF FIRST HYDRO POWER PRE CONCESSION IN LAOS

On Friday, 24th September 2010, Velcan Energy has signed its first hydro power project in Laos. The company and its local partner Electrical Construction and Installation (ECI) have signed a Memorandum of Understanding (MoU) with the Government of Laos for the development of the Nam Phouan project.

This MOU gives the Velcan Energy-ECI consortium the exclusive right to investigate the hydropower potential of a site situated in the Hom district, in the Vientiane province on the Nam Phouan River.

The approximate geographical coordinates of the project are N18.820 E103.365. The current studies have shown a potential of 25 MW.

The technical studies will last approximately 18 months. If they confirm that the site is technically feasible and economically interesting, the consortium has the exclusive right to ask the Government of Laos to be granted the full concession on the Nam Phouan project.

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Summary Information on Velcan Energy

• Velcan Energy is a Nyse Euronext listed Independent Clean Power Producer which builds and operates medium sized renewable energy power plants in India and Brazil
• The Company's strategy is to become a market leader in up to 200 MW renewable energy power stations in India, Brazil and Laos with a particular focus on the hydroelectric sector. Conditions are favourable for this type of plants because:

• o These countries suffer from serious under capacity in electricity production, particularly India where an estimated 650 million people do not have regular access to electricity

• o Under capacity has led to both Indian and Brazilian national governments liberalizing the state controlled electricity market and allowing increased private and foreign competition

• o Laos has a strategic position in South-East Asia, and can export to high powerdemand growing countries such as Thailand, Vietnam, Cambodia and China.
• o These countries have huge untapped hydroelectric potential; India with an estimated 100,000 MW, Brazil with an estimated 190,000 MW and Laos with an estimated 28 000 MW.
• As of September 2010, Velcan Energy
• o Has commissioned its first hydro power plant in Brazil (15 MW).
• o Owns the rights to more than 660 MW of concessions and projects in India, Brazil and Lao (Group share).
• o Has an agreement with the Lao Government to develop 300 MW in Laos.
• Velcan Energy's technical team is composed of industry veterans and is one of the most experienced in the world in the construction and operation of hydroelectric and thermal power plants.
• Velcan Energy is headquartered in Paris, and employs over 100 people, divided between its six administrative offices (Bangalore, Bhubaneswar, Dubai, New Delhi, Paris, and Saõ Paulo), its existing power plants and project sites.

Disclaimer

This press release contains prospective information about the potential of the projects in progress and/or of the projects of which the development has begun. These information constitute objectives attached to projects and shall, in any case, not be construed as direct or indirect net income forecast of the concerned year. Reader's attention is also drawn on the fact that the performance of these objectives depends on future circumstances and that it could be affected and/or delayed by risks, known or unknown, uncertainties, and various factors of any nature, notably related to economic, commercial or regulatory conjuncture, which occurrence could be likely to have a negative impact on future activity and performances of the Group.

This announcement does not constitute a public offering (offre au public) nor an invitation to the public or to any qualified investor in connection with any offering. This announcement is not an offer of securities in the United States or in any other jurisdiction/country.