LCP Lon.Asia China

RNS Number:6857M
London Asia Chinese Private Equity
27 November 2006

London Asia Chinese Private Equity Fund Limited

("LACPEF" or "the Fund")



Investment in Wind Energy Investment Company



LACPEF, the China focused investment fund, announces that it is investing #3.0
million for a 12% stake in Asia Wind Group Ltd ("Asia Wind" or "the Company").
Asia Wind is a Guernsey incorporated investment company which intends to build a
significant portfolio of wind energy related businesses, capitalising on the
rapidly expanding wind energy sector in Asia and availability of leading edge
Western technologies.



Asia Wind will acquire minority stakes in technology companies, project
developers and operators of wind farms in Asia. Additionally, Asia Wind will
invest into Western technology companies that seek both funding for expansion
into Asia and local partnerships.



The Company has already created a substantial pipeline of investments for
consideration through a number of alliances with Asian advisers, energy
companies and universities, which includes wind farms in various provinces
across China as well as wind farm project developers and manufacturers of wind
turbines and components.



Following this investment London Asia Capital plc ("LAC") has agreed to transfer
all of its wind projects and opportunities, built up over several years, to Asia
Wind.  Christoph Loslein, who to date has acted as a consultant to LAC's energy
and environment interests and who is a director of LAC subsidiary company Clean
Technology plc, has become Chief Executive of Asia Wind.  Simon Littlewood and
Victor Ng, both Executive Directors of the Fund and of LAC, have joined the
Board of Asia Wind as non-executive directors.  Companies associated with them
were involved in the initial founding and funding of Asia Wind and remain
shareholders.



The main drivers for growth in the sector are:

*        rapidly rising energy demands in China and India (caused by high,
         sustained GDP growth);

*        high cost of fossil fuels;

*        increasing environmental concerns; and

*        wind energy is currently the most economically viable source of
         renewable energy.



Christoph Loslein, Chief Executive of Asia Wind, said: "This investment allows
us to accelerate the due diligence process we are currently carrying out on a
large number of potential deals.  Other than hydro, wind energy is the most
economical way to produce energy from renewables, and is almost on a par with
conventional energy sources in terms of cost. This means it is likely to be the
fastest growing of all the renewable energy alternatives currently being looked
at as replacements for fossil fuels."



Simon Littlewood, Executive Director of LACPEF, commented: "China's low cost
manufacturing base and large local market make it the obvious place for the
development of a significant wind industry.  Our investment in Asia Wind
complements our other investments in the renewable sector, particularly the
recent investment in China CDM Exchange as many of the projects are likely to
qualify for carbon credits."



For further information please visit www.londonasiafunds.com or contact:


John West/Matt Ridsdale       Simon Littlewood           Hugh Field
Tavistock Communications      London Asia Capital        Collins Stewart Limited
Tel: 020 7920 3150            Tel: 020 7355 7928         Tel: 020 7523 8000





Market Drivers



Through its recently implemented Renewable Energy Law, China requires its
electricity utilities to increase the share of their energy portfolio from
renewable resources more than five fold by 2010 (excluding large hydro power
stations).



Each year, China requires additional electricity capacity almost equivalent to
the entire production of the UK. Currently, less than 1% of total energy
produced is derived from renewable energy sources (excluding large hydro power).
In 2005 the Chinese Government increased its target for wind energy to 30GW by
the year 2020, which would make it by far the largest wind market on the planet,
and is roughly equal to US$30 billion of expenditure. In 2005 China had an
installed base of only 1.2GW, up 59% from the previous year.



China stipulates that 70% of any wind project in China must be local value,
which Asia Wind believes will fuel the development of the local Chinese wind
turbine industry. The Global Wind Energy Council (GWEC) estimates that the total
potential for wind energy in China and India is 250GW and 60GW respectively.


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

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