Custom Power Solutions

Axeon Power News

26 th April 2006

Axeon signs heads of terms to supply Britain's new Zero Emission Van

Axeon Holdings plc announced today that its subsidiary Axeon Power has signed heads of terms to become the exclusive supplier of battery management systems and battery cassettes for Modec's new city delivery van.

Initially Axeon will supply battery cassettes using Sodium Nickel Chloride cells and is also developing a Lithium Ion ('Li-ion') alternative for introduction next year.

Both battery chemistries provide more than three times the energy density of traditional lead acid batteries, enabling the Modec vehicles to carry 2 tonnes for up to 100 miles at speeds of up to 50mph.

In addition to the supply of batteries Axeon is developing charging stations for the vehicle.

Modec is a new company, founded in October 2004 when Jamie Borwick arranged the purchase of the 'eMercury' project from LTI, part of Manganese Bronze Holdings plc. The range being developed by Modec will include a chassis cab, van and pickup, with a bus following on next year. The new vehicles will deliver class leading performance and economy combined with zero tailpipe emissions and extremely quiet operation.

Production is expected to start by the final quarter of 2006, with a projected 50 batteries to be supplied by the end of the year. Production is targeted to reach up to 800 vehicles in the first year.

Hamish Grant, Axeon CEO commented, "I am delighted that we have been able to win this landmark contract. The market for large capacity batteries is accelerating, given the emissions constraints many automotive manufacturers are now facing. The emergence and adoption of advanced lithium batteries is likely to have a major impact on the auto industry for both pure electric vehicles and hybrid vehicles. Axeon is at the forefront of this technology as demonstrated by today's announcement."

For Further Information Contact

Hamish Grant, Chief Executive
David Campbell, Financial Director
Axeon Holdings plc, Davidson House, Science & Technology Park, Aberdeen,
AB22 8GT Scotland UK
t: +44 (0)1224 338383

Ken Cronin
Gavin Anderson
0207 554 1400

16 th February 2006

Axeon Holdings acquires MPower Solutions Ltd

Companies join forces to develop environment friendly power packs for electric vehicles

Axeon Holdings has today entered into an agreement to acquire MPower Solutions Ltd. This move brings together two of the UK's most innovative technology companies delivering solutions to the automotive market for electric vehicles (EV) and hybrid electric vehicles (HEV) that dramatically reduce harmful emissions.

The acquisition combines the expertise from both companies, Axeon's Vindax semiconductor technology with MPower's battery know-how, to produce a battery management system suitable for current EV and HEV Lithium-Ion (Li-Ion) battery packs and next generation fuel cell Li-Ion batteries. The companies have already jointly developed a prototype battery management system for high-capacity Li-Ion battery packs.

The combination of these technologies is particularly interesting to automotive manufacturers which are facing rising regulatory and social pressure to reduce vehicle emissions that harm the environment. Electric and hybrid vehicles reduce the levels of harmful CO₂ emissions caused by automotives and therefore make a significant contribution to reducing the effects of global warming.

Effective today MPower Solutions Ltd will be renamed Axeon Power Ltd.

It is Axeon's intention that MPower's low power battery pack business continues without change of location or management and that Axeon Power will continue to meet the needs of portable power requirements of Original Equipment Manufactures (OEMs) in sectors such as professional high power radios, satellite communications and portable instrumentation.

Axeon Holdings plc Chief Executive Officer

Davidson House Hamish Grant

Science & Technology Park T: 01 224 338383

Aberdeen

AB22 8GT

Axeon Power Ltd Managing Director

Nobel Court John Blinkhorne

Wester Gourdie T: 01382 400040

Dundee

DD2 4UH

-ENDS-

15 May 2005

New Investment in High Power Batteries

MPower Solutions, the Dundee based custom battery design and manufacturing company, today announced a major new investment of £1.2 million to develop a new generation of higher power batteries, based on Lithium-ion (Li-ion) technology, for use in electric and hybrid vehicles.

The investment, provided by Scotland 's ITI Energy, will be used to develop the battery management and safety systems needed to support Li-ion cell technologies. £200,000 of this investment is earmarked for Axeon, an Aberdeen based technology company, who will provide the software needed to characterise the electrochemical reactions taking place in the energy cells.

MPower will provide the electronics and systems integration and will prove out the technology in test vehicles. Additional support will be provided by St Andrews University .

MPower currently supplies in excess of 500,000 batteries per month, many of these being Li-ion chemistry, for mobile phones and other portable electronic devices.

Managing Director, Mr John Blinkhorne said "This project marks a major expansion into a new business area for MPower using its existing skills base. Although Lithium battery technologies have been in use for over 20 years, high costs have prevented their use for high power applications. Recent developments in Li-ion technology have now made it economically viable for high power applications, however these advances need to be matched by developments in the associated electronics and systems integration.

The ITI investment will enable MPower to be a significant player in this emerging market."

-ENDS-

1st May 2005

MPower Solutions is pleased to announce that it will be exhibiting at the "BATTERIES 2005" Conference and Exhibition being held in Paris from 14 th -16 th June at the Le Meridien Hotel in Manganese.

The event aims to bring together the entire battery industry and will feature experts presenting a series of technical seminars examining different market areas and future trends and technologies, as well as a range of workshops discussing topical themes.

MPower will be on Stand No 108 ; we look forward to welcoming you at the event to discuss your ongoing and future requirements for portable power.

-ENDS-

20 th December 2004

MPower Provides the Power

Dundee , Scotland based MPower Solutions, one of Europe 's leading designers and manufacturers of custom batteries provides the power for Sepura's Tetra radios.

Sepura, based in Cambridge , UK , designs and develops digital Tetra radios for use by the Emergency Services as well as by a wide range of other applications including those in the Military, Transport and Utilities sectors.

In operation, the officers and personnel using these light-weight hand portable terminals are totally reliant on the effectiveness of the radios and their Lithium Ion ( Li-Ion) batteries for their own safety and overall performance.

The Li-Ion batteries used in Sepura's SRP2000 and the recently launched SRP3000 hand portable are produced in Normal and High Capacity versions - both incorporating interconnected cells and electronic protection circuits.

The batteries also incorporate a coulomb counting ' gas gauge' that communicates with the radio to provide the operator with an accurate prediction of the state of battery charge. The cells and associated protection circuit are enclosed in rugged injection mouldings, ultrasonically welded together to form a robust waterproof package suitable for use in adverse terrains.

John Blinkhorne , MPower's Managing Director stresses. 'that whilst Li-Ion batteries are the cells of choice for many portable products, MPower is very careful in its' selection of battery cells and we are especially careful in the recommendations we make for use in radios which can be often be the user's life line. In addition to meeting the product's technical and cost requirements, MPower ensures that the safety and security of the users are given the highest priority'.

-ENDS-

Continued..

About MPower:

MPower Solutions is one of Europe 's leading independent designers and manufacturers of custom power solutions for use in the widest range of portable products.

Battery products include Nickel Cadmium, Nickel Metal Hydride and increasingly Lithium Ion and Lithium Polymer. Corresponding battery charging systems are tailored to individual customer requirements

The company employs over 100 personnel at its headquarters in Dundee , Scotland where it carries out design, development and manufacturing for many UK , European and US based design companies and Original Equipment Manufacturers (OEMs). MPower is represented around the world by its own sales staff and a network of partners.

In excess of 85% of MPower's production is exported.

About Sepura:

Sepura is the world's leading independent TETRA terminal supplier. It designs, develops and supplies digital (TETRA) radios for the public safety market (such as police, fire and ambulance) as well as Military, Transport and Utilities. Sepura headquartered in Cambridge, England has an international network of distributors and partners supplying customers in over 50 countries worldwide.

Sepura offers the most comprehensive and largest international range of TETRA products. Its products are available in the widest range of TETRA frequency bands and operate on ALL manufacturers infrastructures.

Manufactured by Siemens, the range includes vehicle-mounted and hand portable radios including the award winning SRP2000 and the world's first public safety hand portable offer fully integrated GPS, the SRP2000sGPS

For further information contact:

Norman Hodson

MPower Solutions Ltd

telephone: +44 1621 890000

mobile: +44 7990 892292

email: n.hodson@mpoweruk.com

http//:www.mpoweruk.com