FBG Fibregen

    RNS Number : 7452Y
  FibreGen Plc
  10 July 2008
   



 Press Release   10 July 2008

    FibreGen plc
    ("FibreGen" or "the Company")
    Trading and Operational Update

    Emerald Bio-Energy Ltd

    The Company announces that the 25% minority shareholder in the Company's subsidiary, Emerald Bio-Energy ("EBE"), has exercised its right
under a put option arrangement granted to it in May 2007 to require the Company to purchase this 25% minority shareholding. Under the put
option arrangement, the consideration payable for the minority stake is �4m. The Directors are currently in negotiations with the minority
shareholder as to how this obligation will be satisfied.  The Directors currently expect that the obligation will be satisfied through a
combination of cash and the disposal of the Company's interest in its Chinese joint venture.

    Coeur d'Alene Fiber Fuels Inc

    On 3 April 2008, the Company announced the acquisition of Coeur d'Alene Fiber Fuels Inc ("CAFF").  CAFF has subsequently been notified
by its bank that it will be modifying the terms of its working capital facility, which will require FibreGen, as CAFF's parent company, to
provide additional security.  The Directors of the Company have determined that the modified terms of the working capital facility cannot be
met by the Company. As a result, FibreGen is in negotiation with the original vendors to sell back CAFF in return for the proposed
cancellation of 1,571,092 FibreGen shares (post-consolidation) that were originally issued as consideration.  Whilst this proposed
arrangement will reduce the Company's level of debt, the sale of CAFF will result in FibreGen's revenue for the year ending 31 December 2008
being materially below market expectations.

    The Directors will update the market in due course regarding these matters.


    - Ends -

    For further information: 

 FibreGen plc
 Glenn Smith   Tel: +1 206 838 8398
 Rick Squires  Tel: +44 7971 037116

 Landsbanki Securities (UK) Ltd  
 Nominated Advisor
 Jeff Keating/Simon Brown, Corporate Finance         Tel: +44 (0) 20 7426 9000
 Liberum Capital - Broker
 Ellen Francis / Simon Atkinson, Corporate Finance  Tel: +44 (0) 20 3100 2000 

    Media enquiries:
 Abchurch                             Tel: +44 (0) 20 7398 7700
 Heather Salmond / Justin Heath       Tel: +44 (0) 20 7398 7709
 Heather.salmond@abchurch-group.com    www.abchurch-group.com  





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