EAM Energy Asset

RNS Number:3626J
Energy Asset Management PLC
07 December 2007


Energy Asset Management Plc

(the "Company" or "EAM"))

Trading Update

Exciting contracts have either now been signed or are in advanced stages of
negotiation, demonstrating that there is strong market appetite for our
competitively priced and efficiently delivered metering and data provision
services. The timeframe for completing such discussions and implementing
contracts however, is notoriously protracted in this sector and although major
long term contracts have been secured at a rate higher than previously
anticipated the Company will not achieve it's monthly profit and cash
projections previously advised for 2007. Since the Company has high operational
gearing the full benefit of our current and expected contracts and strategic
alliances will add only a small increment to costs enabling profitability to be
quickly attained and the directors continue to remain optimistic this will be
fully reflected in the results for 2008 and 2009. In anticipation of the
accelerated growth the Company has decided to expand its IT infrastructure to
facilitate the use of a "hand held" works management system by field operatives
in order to further improve efficiency and effectiveness. The Company therefore
may carry out a limited placing of new ordinary shares to accommodate this IT
requirement and provide additional working capital.

Contract Awards

Customer Groups - High Street Retail - Public Sector

The Company is pleased to announce that, following successful implementation of
its electricity metering project with Woolworths, services provided by Energy
Assets Limited (a wholly-owned subsidiary of EAM) have been extended to include
gas metering and data collection services, including the installation and
management of a SMS-enabled gas metering solution. Installations are underway.

Similar success has been achieved on the Marks and Spencer gas meter data
collection contract. This has been successfully completed and has now been
extended to incorporate gas meter exchanges for a further 100 sites. Such is the
success of the gas metering project this has now been extended to specific Marks
and Spencer electricity metering sites and water metering sites. Installations
are underway.

EAL's success with Woolworths and Marks and Spencer have generated interest from
other similar high street retail groups and we are presently at varying levels
of negotiations with a number of these retail groups, with trials underway in
some cases.

Our present strategic alliance with IMServ, a subsidiary of Invensys Plc, has in
addition introduced several high street and blue chip names to our portfolio,
ranging from Local Authorities to public service and leading financial
institutions. These prospects are existing customers of IMServ and we therefore
anticipate a smooth transition into these customers.

EAL have recently successfully completed a significant gas meter exchange and
data collection programme on behalf of a major Local Authority. The directors
believe that this programme will be extended to position EAL as the Local
Authority's exclusive metering services provider. Such was the success of this
programme the Local Authority energy manager has highly recommended EAL to other
adjacent Public Sector groups and more importantly to neighbouring Local
Authorities.

Energy Suppliers

EAL has signed a further 3 long term contracts with established energy suppliers
for the provision of new and exchange metering services and data collection and
management services.

Contract discussions are progressing at varying stages with a further 5 energy
suppliers to provide similar metering and data services.


Others

A unique opportunity has been presented to EAL to collaborate with an
independent gas transporter. This opportunity introduces EAL to the potential of
15,000-20,000 new domestic, industrial and commercial metering installations on
an annual basis. Medium term contracts have been signed and implementation is
underway. This opportunity also extends to "smart metering" and the potential to
become involved in social housing and fuel poverty projects which all attract
Government grant funding. This one project in isolation has the ability to
deliver EAL's original expectations and objectives over the coming 3 years.

Projects of Public Interest

   * Tower of London
   * Windsor Castle
   * O2 Arena (Millennium Dome)
   * Liverpool Arena and Convention centre

All of the above are major tourist attractions and have one thing in common,
namely EAL meters and data collection solutions have recently been fitted at
each of these sites.

Managing Director, Alan McKeating, stated,

"The business is now in a strong position and significant effort is now being
focused on progressing, mobilising and implementing current contractual
agreements with customers for new and existing business. The Board is confident
that the potential for the business exceeds our original expectations, as the
intent to become "green", combat rising energy costs, allied to the need to
conserve dwindling energy resources are all factors driving major industrial and
commercial customers towards the need for our competitively priced and
efficiently delivered metering and data provision services."

I look forward to announcing further contract wins regularly throughout the year
and more importantly maintaining awareness of the progress of the above
projects.

For further information please contact:

Energy Asset Management Plc

Stephen Barclay, Non-Executive Chairman
Tel: 07767 444114

Alan McKeating, Managing Director
Tel: 07843 231372



Ruegg & Co Limited

Gavin Burnell
Tel: 0207 584 3663




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

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