ALR Alternative E.

RNS Number:1104H
Alternative Energy Limited
06 November 2007


For Immediate Release                                            6 November 2007

ALTERNATIVE ENERGY LIMITED ("the Company")
(a company incorporated in Singapore)
Company No: 200619290H


PROPOSED ACQUISITION


INTRODUCTION


The Board of directors (the "Board") of Alternative Energy Limited (the
"Company") hereby wishes to announce that the Company, has entered into a share
purchase agreement to acquire the entire interest in Renewable Power Pte Ltd
("RPPL"), a company incorporated in Singapore (the "Acquisition").


On completion of the Acquisition, the Company will further invest a sum of
S$199,999 to subscribe for new shares of 199,999 such that the issued and
paid-up capital is increased to S$200,000 comprising 200,000 shares.


RATIONALE FOR THE ACQUISITION


The Company has been formed for the purpose of making investments and/or
acquisitions in the alternative energy market and for research and development
of energy technologies, businesses and companies which offer an alternative to
conventional fossil fuel and nuclear methods of generating household and
industrial energy. The Company does not currently possess any in-house technical
expertise, but in the Company's Admission Document dated 9 October 2007, the
Directors stated their intention to identify and then appoint suitably qualified
and experienced personnel to fill the key personnel positions.


Accordingly, the Board believes that the acquisition of RPPL as a subsidiary
would therefore present several strategic advantages to the Company's business:


a.      In House Research capacity - Rapid Expansion - The availability of its
own in-house research team will both enable the Company to quickly analyse the
technical viability of investment proposals and will also enable the Company to
develop its own technical competence - a very important element in an area with
many developing technologies and where the cost of external consultancy could be
very high.


b.      Confidentiality. The availability of an in-house technical team will
also enable the Company to ensure stricter confidentiality in technologies and
investments which it analyses and reviews - this could be vital in a
technologically developing and sensitive market.


c.      Savings in Infrastructure Set-up - RPPL has acquired an office cum
laboratory facility in Science Park II in Singapore. This facility has already
been fitted with renovations worth about S$500,000. Upon acquisition of RPPL,
the Company would enjoy a saving in terms of sunk cost and renovation time,
compared to the option of acquiring a new research facility on its own.


d.      Singaporean Team - Finally, all of the staff from RPPL are all Singapore
citizens or Permanent Residents. Singapore is a recognized financial centre
which is also a well known supporter of the development of technology.
Singapore's proximity to the booming manufacturing and technology centres of
Asia, coupled with the Singaporean government's expressed desire to develop
alternative energy technologies means that basing a Research and Development
team in Singapore may bring to the Company additional benefits in the way of
opportunities, economic efficiencies and grants. Singaporean professionals have
a good reputation for integrity and reliability and are more cost effective than
their European counterparts.



INFORMATION REGARDING RPPL


RPPL is a Singapore based research company and was founded and established by
its sole shareholder and director Dr Goh Swee Ming, an experienced research
scientist and engineer in August 2007. He was joined by Dr Tay Boon Hou, a
research scientist with whom he had collaborated successfully for more than a
decade.


RPPL is dedicated in the research and development of renewable energies for
household consumers. The company comprises a team of experienced research
scientists and engineers with a short term lease on commercial terms on a
property with fully fitted out research and development facilities in Singapore.
RPPL does not have any other assets or liabilities other than its commitments to
employees. The Board therefore believes that the acquisition of RPPL would
enable the Company to achieve its objective of obtaining, in a cost and
administratively efficient manner, a dedicated and competent research and
development team and fulfill its objectives in respect of the appointment of
suitably qualified and experienced personnel.


THE ACQUISITION


The Company has on 30th October 2007 entered into a sale and purchase agreement
(the "SPA") with Dr Goh Swee Ming (as Vendor) pursuant to which he will sell his
shareholding interest amounting to 100% in RPPL to the Company, free from all
claims, charges, liens, equities and other encumbrances and together with all
rights and advantages attaching thereto on completion and thereafter.



Principal Terms


Under the terms of the SPA, the purchase consideration in respect of the 100%
equity interest in RPPL is US$400,000 and shall be fully paid or satisfied by
way of 9,411,764 new ordinary shares in the Company at the issue price of
US$0.0425 per ordinary share (the "Consideration Shares").


The Consideration Shares shall be allotted and issued directly to the Vendor or
his nominee, and will be credited as fully paid-up. The Consideration Shares
when allotted and issued shall rank pari passu in all respects with the then
existing ordinary shares of the Company save that they will not rank for any
dividends, rights, allotments or any distribution, the record date of which
falls before the date of issue of the Consideration Shares. The Consideration
Shares, when issued, represent approximately 0.79% of the enlarged issued share
capital of the Company upon the completion of the Acquisition.


Application will be made to the London Stock Exchange for the Consideration
Shares to be admitted to trading on AIM.


LOAN FOLLOWING THE ACQUISITION


The Directors intend to make an intercompany loan to RPPL of some S$1,223,000
over the next year.


INTEREST OF DIRECTORS


Save as disclosed in this announcement, none of the directors or controlling
shareholders of the Company have any interest, direct or indirect (other than
through their shareholdings in the Company), in the Acquisition.



RESPONSIBILITY STATEMENT


The Directors of the Company (including those who have delegated detailed
supervision of this Announcement) have taken all reasonable care to ensure that
the facts and opinions stated in this Announcement are fair and accurate and
that no material facts have been omitted and them jointly and severally accept
responsibility accordingly. Where any information has been extracted from
published or publicly available sources, the sole responsibility of the
Directors of the Company has been to ensure through reasonable enquiries that
such information is accurately extracted from such sources or, as the case may
be, reflected or reproduced in this Announcement.


ENDS


For further information, please contact:

Richard Lascelles, Director Tel: +44 207 408 1067

Roland Cornish, Beaumont Cornish Limited Tel: 020 7628 3396



Notes for Editors:

Summary of Bibliographies of Current RPPLTeam Principals

Name - Dr Eric Goh Swee Ming
Appointment - General Manager
Age: 43

Qualifications - PhD, Master of Science in Information Studies & Bachelor of
Engineering (Mech).

Relevant Working Experience - Director of Research Development, SCPii
(2006-2007); Country Manager of US-based Management Consultancy, LIM (2006
-2007); Engineering Manager, Singapore Technologies Kinetics (1996-2006);
Military Engineering Officer, MINDEF (1989 -1996). He is also a Member of the
Systems Engineering Society of Australia.




Name - Dr Tay Boon Hou

Appointment - Chief Technology Officer / Principal Consultant

Age: 42

Qualifications - PhD & Bachelor of Electrical and Electronic Engineering (Hons)

Relevant Working Experience -Director and Project Manager of IN Technology Pte
Ltd. He oversees the Company and pioneers three strategic research activities in
the company, namely, Artificial Intelligence, Systems Engineering and Datalink.
The Singapore Industrial Representative for the Technical Publications
Specification Maintenance Group (TPSMG) that is responsible for maintaining the
S1000D specification for the European Association of Aerospace Industries
(AECMA). He is also a Member of the Systems Engineering Society of Australia.

The team also currently comprises: Lee Wai Hong, Principal Research Engineer,
aged 38; Ang Teck Wee, Research Engineer, aged 28; and Esther Chung Chee Wan,
Accounts and Administrative, aged 31.



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

END
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