Velcan Holdings

Regulatory Filings • Dec 20, 2010

Press release

New Delhi, 20th December 2010

VELCAN ENERGY: SUCCESSFUL SALE OF SATYAMAHARSHI POWER PLANT

The Velcan Energy group announces that it has sold its last biomass powered 7.5 MW Satyamaharshi Power plant situated in Andhra Pradesh, India. According to the sale agreement the exact amount of the transaction has to be kept confidential. The transaction will have a positive impact on the 2010 accounts.

Antoine Decitre, Co Managing Director of the group says "Velcan Energy is now a pure hydropower concession player, dedicated to emerging markets. Given all the projects and the prospection underway in our new markets, it is good that the company focuses on a single line of business. Our Indian biomass plants have helped us understand the Indian power market and establish our presence in the country. They were fundamental to obtain our Indian hydropower concessions. It is thanks to them that we now have our 500 MW Yarjep River concession. As of today we are still the only foreign company with such a deal in India."

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Summary Information on Velcan Energy

• Velcan Energy develops and operates hydro power concessions in emerging markets.
• The Company's strategy is to become a market leader in up to 200 MW hydro power concessions in among others India, Brazil and Laos. 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 20 000 MW.

• As of December 2010, Velcan Energy
• o Has commissioned its first hydro power plant in Brazil (15 MW)
• o Owns the rights to more than 575 MW of concessions and projects in India and Brazil (Group share).
• o Has an agreement to develop 300 MW in Laos
• o Is actively prospecting three additional emerging markets.
• 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 plants.
• Velcan Energy is headquartered in Paris, and employs over 80 people, divided between its administrative offices (New Delhi, Paris, and Saõ Paulo) and concession 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.