EANS-News: German Pellets Founds Subsidiary in Italy

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Strategic management decisions

Wismar (euro adhoc) - German Pellets is strengthening its presence on
the Italian market. The newly founded subsidiary German Pellets
Italia plans to build and operate combined heat and power (CHP)
plants in Northern Italy. "This is a very important step for our
company´s further expansion on the European market," said Peter
Leibold, managing director of German Pellets GmbH.

German Pellets Italia was founded together with an Italian partner.
In the coming years, the subsidiary wants to build and operate CHP
plants for the production of electricity and heat from wood pellets,
primarily in Northern Italy. The framework conditions in Italy are
especially good, owing to the adequate feed-in tariffs for
electricity from CHP plants. Up to 28 cents per kilowatt-hour are
paid for green electricity fed into the national grid. German Pellets
will sell the thermal energy to customers in the region.

The cogeneration of heat and power will play a major role in the
future energy mix. "The technology is highly efficient. In Italy we
are following a decentralised model, which makes it possible to
produce energy close to where it is used," said Peter Leibold. The
small power plants supply 180 kW of electricity and 240 kW of heat.
This is enough electricity to power 350 households for one year. The
thermal energy produced can meet the yearly heating requirements of
approx. 100 households. "With the operation of these CHP plants, we
will increase our pellet sales in the long term and secure a broader
basis for our growth through the additional sale of green electricity
and heat," said German Pellets´ CEO Leibold.

Italy has been an important market for the German Pellets Group for
many years. Fossil fuels, such as oil and gas, are significantly more
expensive here than alternative energies. The renewable energy
industry in Italy has an especially high potential for development.
Consumer acceptance for wood pellets is high. The country has roughly
1.5 million pellet stoves, and this figure is increasing by about
200,000 every year. The Italian government promotes the use of
renewable energies with tax credits, investment grants and feed-in
tariffs.

About German Pellets German Pellets is Europe´s largest pellet
manufacturer. Founded in 2005 in Wismar, Mecklenburg-Vorpommern, the
German Pellets Group now has approx. 400 employees and controlls 14
manufacturing sites, where it produces an environmentally friendly
and carbon-neutral fuel from renewable resources. In addition German
Pellets produces green electricity from wood in biomass CHP plants at
four production sites. Through a subsidiary German Pellets builds and
operates wood-pellet heating systems as an energy contractor. In the
past financial year, the Group had a turnover of approx. 300 million
euros.

Further inquiry note:
Claudia Röhr
Tel.: 03841 30306412
E-Mail: claudia.roehr@german-pellets.de

end of announcement euro adhoc
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company: German Pellets GmbH
Am Torney 2a
D-23970 Wismar
phone: +49 (0) 3841 30 30 6 0
FAX: +49 (0) 3841 - 30 30 6 91 00
WWW: http://www.german-pellets.de
sector: Energy
ISIN: DE000A1H3J67
indexes:
stockmarkets: Open Market: Frankfurt, free trade/Bondm: Stuttgart
language: English