ACEP Aspen Energy

RNS Number:8586B
Aspen Clean Energy PLC
24 April 2006



                                                                  24 April, 2006

                             Aspen Clean Energy plc
                           ("Aspen" or the "Company")

                         Disposal of trading subsidiary

The Company announces that it has entered into a conditional sale and purchase
agreement ("the Sale and Purchase Agreement") with Lantmannen Energi AB 
("Lantmannen") to dispose of the entire issued share capital of Aspen Clean
Fuels Limited, the Company's trading subsidiary ("ACF"), for a cash
consideration of SEK 180 million (approximately #13.3 million). As part of the
proposed acquisition Lantmannen will also assume ACF's debts of approximately
#4.625 million.

Under the AIM Rules, as the disposal will result in the Company no longer having
a trading business, the Sale and Purchase Agreement is conditional, inter alia,
on the passing of a resolution at an extraordinary general meeting of the
Company to be held on 18 May 2006.

Reasons for the Disposal

ACF is the Company's sole operating subsidiary and is a manufacturer and
supplier of alkalyte fuels for use in small motorised tools. It markets this
product in 14 European countries, but some 30 per cent. of turnover is generated
in Sweden.

Lantmannen, which is a Swedish co-operative made up of 52,000 farmers with
multinational business interests, recently merged with Agro Oil AB ("Agro")
which is a major customer of the Company and, in view of increasing competition
in the market place and Agro's position as a main distributor in Sweden, the
Board consider that disposing of ACF on this basis is in the best interests of
all shareholders.

Following the completion of the disposal, the Company will have no debt and the
directors estimate that it will have approximately #13.9 million of cash.

Proposed Return of Capital

The board is exploring means of returning #9.5 million to shareholders by way of
a reduction of capital. This will involve an application to the Court as well as
shareholder approval, and a further letter setting out full details of this will
be sent to shareholders in due course.

Investing Strategy

Following the Disposal and the reduction of capital, the board believes that the
cash retained by the Company could make it attractive to a number of potential
acquisition targets seeking Admission to AIM by reversing into a liquid cash
shell.

The directors intend to seek to acquire another company or business in exchange
for the issue of ordinary shares in a single transaction (a "reverse takeover").
The directors' main investment criteria are that such a company should be:

  * An environmental or "green" business in the United Kingdom or Europe;

  * one which requires little or no funding in excess of the cash resources
    available to the Company following the disposal and the proposed return of
    capital; and


  * one whose growth prospects, if achieved, will be earnings enhancing for
    shareholders.

These criteria are not intended to be exhaustive; however, the Company may make
an investment which does not fulfil all the investment criteria if its directors
believe that it is in the interests of shareholders as a whole to proceed with
such an investment. Any acquisition of the Company will be put to shareholders
for their approval at the appropriate time.

A circular will be sent to shareholders shortly convening an extraordinary
general meeting to be held on 18 May 2006.

Enquiries:

Aspen Clean Energy plc                                        +44 20 7710 7403
Keith Smith                                                   +46 707 103 980
Jan Lindblad                                                 
                                                                         
John East & Partners Limited
John East/Simon Clements/David Worlidge                       +44 20 7628 2200




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

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