Financial Review
First half revenues have been more than double the whole of 2006 and in line with market forecasts. Operating costs have been below expectations in the first half. The receipt of £5.65m net of associated costs from the investment announced on 12 July 2007 would provide cash resources until 2010 at current utilisation rates.

Commercial and Operational Progress
Acta has made good commercial progress in the first half. New Non Disclosure Agreements have been signed and repeat orders have been shipped to key target customers. Total shipments were significantly higher than in the whole of 2006. Acta is making excellent progress in expanding its activities beyond fuel cell catalysts: the new ammonia electrolyser offers a unique and exciting solution to the problems of hydrogen supply for existing fuel cell technologies and encouraging trials are taking place in a battery application. Customer trials continue to expand and it is hoped that these will be converted into an announceable Joint Development Agreement in the second half. Scale up of the pilot plant remains on schedule and within budget.

Technical Progress
Acta has made important technical progress towards its 2007 milestones. The successful public demonstration of the world’s first ethanol powered fuel cell vehicle at the Shell Eco-marathon was a tangible confirmation of the technical potential of the system. The launch of the ammonia electrolyser catalyst has been followed by further development work, for which a second ammonia electrolysis patent application will be made this summer. The new HYPERMEC 3- Series anode for fuel cells offers improved performance and durability of up to 3,000 hours. Acta has also made important progress in improving the structure of its Alkaline Membrane Fuel Cells, screening other key components such as membranes and ionomers and filing a further three patent applications concerning its own technology, including one in early July. Finally, Acta has been pleased to start work with Edinburgh University on the project to explore the conversion of CO2 into alcohols, as funded by the Carbon Trust.

Sumitomo Corporation Investment and Institutional Placing
On 12 July 2007 Acta announced that Sumitomo Corporation, its Asian marketing partner, is to invest £4.6m for around 10% of the Company. This investment, supported by a further placing with institutional investors, is a tremendous endorsement of Acta’s commercial and technical progress outlined above, further reinforced by the extension of the Sumitomo marketing agreement for a 10-year period.

Paolo Bert, Chief Executive, commented:
"Acta has made considerable progress in the first half in its strategy to develop multiple applications for its technology. We have had encouraging responses from a wide range of target customers. The strength of our technology and the recent investment in the business leaves us ideally placed to take full advantage of the opportunities presented by our high growth markets and we expect to deliver key commercial milestones in the second half of the year."

For further information, please contact:

Acta S.p.A:
Toby Woolrych, Chief Operating Officer Tel: +44 (0) 20 7360 4900

Smithfield Consultants:
Katie Hunt / Will Henderson Tel: +44 (0) 20 7360 4900

Numis:
David Poutney / Alex Ham Tel: +44 (0) 20 7260 1000

Acta S.p.A.
Acta, which was admitted to AIM in October 2005, is a manufacturer of platinum-free catalysts for the portable electronics and renewables markets. Acta uses patented manufacturing processes to make uniquely active catalysts, branded HYPERMEC, which are able to perform as effectively as expensive platinum catalysts. Acta’s catalysts offer customers technical usage benefits, significant cost savings and allow for the first time the use of ethanol, which is a safe and environmentally friendly fuel. Products in the target portable electronics market include laptop computers and mobile phones, and in the renewables market include electricity supply, automotive power and hydrogen generation.

Further information

Sumitomo Investment

On 12th July Acta announced a £4.6m investment by Sumitomo Corporation together with a further £1.15m placing with UK institutions. At the same time Acta and Sumitomo entered into a new Marketing Agreement with an initial fixed term extended to ten years and provisions contemplating collaboration in future ventures in the Asian region. Completion of the first half of the investment by Sumitomo and the institutional placing (approximately 60% of the fund raising) is expected during the second half of September 2007 following EGM approval. The second tranche of the Sumitomo investment is due to be completed six months thereafter. Completion of the fund raising is, in each case, subject to the fulfilment of certain administrative matters and there being no breach of warranty.

Ammonia electrolyser
In January 2007 Acta announced that it had developed a novel catalyst which could produce hydrogen from ammonia at room temperature by electrolysis. This electrolyser was demonstrated in February at the world’s largest fuel cell exhibition in Tokyo. The ammonia electrolyser is a breakthrough because ammonia is a very widely available and practical fuel for carbon-free motoring. Use of ammonia avoids the critical problems of hydrogen storage and transportation currently faced by fuel cell developers. The new electrolyser releases the hydrogen for use in a fuel cell using a fraction of the electrical input and at a much lower temperature than any other process. The Acta development therefore makes possible for the first time the on-board supply of hydrogen for automotive fuel cells from a practical fuel source.

Increased production output
Acta’s pilot plant is installed and now being commissioned. Publicly announced targets for production capacity will give the business increasing ability to meet future customer orders. Targets for June 2007 have already been met and progress towards December 2007 targets is on plan.

Launch of HYPERMEC 3-Series anode
Acta launched in May a new anode that, when used with the existing K14 cathode, offers higher performance and better durability than the 2-Series anode it replaces. Customer trials are in progress with the new catalyst.

Shell Eco-Marathon Demonstration
Acta announced in May that it had supplied catalysts for the world’s first direct ethanol fuel cell vehicle, which was demonstrated at the Shell Eco-marathon in France. The successful demonstration has received considerable publicity within the market and demonstrates the potential of Acta’s unique catalysts.

CO2 to alcohol programme
Acta announced in March that the Carbon Trust had awarded £175,000 to Acta and the University of Edinburgh to investigate the conversion of CO2 to alcohol. If successful, this would be a fundamental advance in the quest to reduce emissions of greenhouse gases. Significant interest has been expressed already by a number of large international OEMs in the outcome of this project.