LCP Lon.Asia China

RNS Number:0099R
London Asia Chinese Private Equity
12 February 2007


12 February 2007


                London Asia Chinese Private Equity Fund Limited
                            ("LACPEF" or "the Fund")


                        Asia Wind signs major agreement


Asia Wind Group Ltd. ("Asia Wind" or "the Company"), in which the Fund took a
stake last November, announces that it has signed an agreement with Wuhan Guoce
Science & Technology Co., Ltd ("Guoce") to work together on the financing and
developing of wind energy projects in China with an initial capacity of 1,000
MW. The estimated investment required, should all the projects go ahead, is
approximately #600 million.


Guoce, a Chinese wind turbine manufacturer and wind farm developer, has
agreements in place with a number of local governmental authorities across
China. These agreements give Guoce rights to develop and operate wind power
projects with potential capacity of 2,300 MW as the project owner and developer,
roughly equal to #1.3 billion of capital expenditure.


Under the agreement with Guoce, Asia Wind is the sole manager of the financing
of the initial development phase of 1,000 MW, and will be responsible for
introducing additional technology partners and structuring the Carbon Credits of
the projects under the Clean Development Mechanism of the Kyoto Protocol. The
Fund has an investment in China's leading advisor on carbon credits, China CDM
Exchange Ltd, listed on the UK's PLUS market.  Asia Wind has also been granted a
first right of refusal to finance Guoce's additional 1,300 MW capacity of wind
energy. Asia Wind also has the right to sell on and refinance projects developed
by Guoce.


Commenting on the alliance, Christoph Loslein, Chief Executive of Asia Wind,
said: "We are currently performing due diligence on the projects, following
which we will seek to raise both debt and equity finance for them.  Guoce's
ability to produce the equipment cost effectively in China and its existing
stream of projects make this an important step forward for the Company."


Simon Littlewood, Director of the Fund, commented: "There are significant
opportunities available to Asia Wind, in addition to those with Guoce, which
will require large amounts of finance going forward, and we are looking at
various ways to secure this."


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



About Guoce

Wuhan, China based Guoce is a specialist company engaged in technical research
and development, production and sale of electrical power testing and calibration
instruments, microprocessor-based protection and ISA (integrated substation
automation) systems. In 2006 the Company entered the wind power market, aiming
to become a leading wind turbine manufacturer and wind farm developer in China.


About Asia Wind

Asia Wind is a Guernsey incorporated investment company focusing on the rapidly
expanding wind energy sector in Asia, leveraging its access to leading edge
Western technologies, finance and the market in Asia.  For additional
information on Asia Wind, visit www.asiawindgroup.com


Market Drivers

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 one of the most economically viable sources of
         renewable energy.


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. 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
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