RNS Number:8610P
London Asia Chinese Private Equity
22 January 2007

22 January 2007



                    LONDON ASIA CHINESE PRIVATE EQUITY FUND

                            ("LACPEF" or "the Fund")



                  #4 MILLION INVESTED IN CLEAN ENERGY BUSINESS



LACPEF, the AIM listed China focused investment fund, announces that it has
invested #4 million in Singapore incorporated Asia Clean Energy Pte ("ACE" or "
the Company"), an investment company specialising in the clean energy sector
with a focus on China.



ACE's primary focus is investing in coal mine methane power generating projects,
but it will also invest in small-medium hydropower projects as well as in
related high-tech companies.



ACE has brought together an experienced management team with a successful track
record of setting up and floating businesses in these sectors.  ACE has raised
over US$30 million in new capital to finance the acquisition of energy and
environment (E&E) focused businesses.  This will be done largely via management
buy-outs and the acquisition of businesses from state owned and larger
enterprises, using the management teams' contacts and experience in the field.
Deals already identified and undergoing due diligence include acquiring
controlling stakes in coal mine methane power projects totaling 200 MW, and
acquiring majority stakes in small-medium size hydropower projects totaling 100
MW.



ACE will also look to trade the carbon credits generated by its investee
projects.  The Fund recently took a stake in China CDM Exchange Centre, a
leading Chinese carbon credit advisory firm which manages what is believed to be
the only on-line platform for environmental commodity transactions in China.



The Asian market for products and services in the renewable energy, energy
generation and clean technology sectors is rapidly expanding, and those
businesses involved are actively seeking capital investment.  The Fund has
already invested in five companies in the E&E sector, including wind energy,
ethanol production, thermal equipment and infrastructure and carbon trading.



Simon Littlewood, Executive Director of the Fund, commented: "The E&E sector is
one of the most exciting investment areas in China at present, as a result of
both legislation encouraging a switch from fossil fuel and polluting technology
to cleaner technology, and the improved economics of the technology.  The sector
is still heavily undercapitalised, as many investors lack the expertise and
experience to be able to assess the opportunities and risks, particularly in
China.  ACE has a management team that we have known for some time, and which
has proven not only its skill in the sector, but its ability to make money for
investors."



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


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



Background information



Coal Mine Methane



According to the National Energy Development Program for the 11th Five Year
Plan, by 2006 the utilization of coal mine methane should reach 800 million
cubic meters; and by 2010 5 billion cubic meters and upwards, with electric
power generated by coal mine methane to reach 3 billion cubic meters and the
installed capacity of coal mine methane achieve 1,500MW, against only 200MW at
present.



Carbon Credits



The global carbon market, already worth US$10 billion in 2005, is growing
exponentially. The Kyoto Protocol officially became a legally binding treaty in
February 2005, with 163 countries joining. Developed countries are obliged to
reduce their collective emissions by 5.2% during 2008-2012 and they are allowed
to obtain emission credits from developing countries, which have no obligations
for emission reduction for the near future. Already the largest seller, China is
likely to continue to dominate the sell side as a CDM host country with no
binding obligation to meet emission reduction targets before 2012. China more
than doubled its number of projects registered in 2005 compared to 2004.






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