Background to Monitor Producer 1 Limited

Colin Dempster and Tom Burton of Ernst & Young LLP were appointed Joint Interim Managers of Monitor Producer 1 Limited (Subject to Administration Proceedings) ("MP1"). This appointment was made subsequent to the presentation of a petition to the Court of Session in Edinburgh, Scotland by the Director of MP1 seeking the appointment of Administrators to MP1 under the terms of paragraph 10 of Schedule B1 of the Insolvency Act 1986.

The appointment of Colin Dempster and Tom Burton as Joint Administrators of MP1 was confirmed by the Court of Session on the 15th of May 2008.

The Joint Administrators are presently undertaking an appraisal process in relation to the Power Buoy System. During this appraisal process, the Joint Administrators will be assessing the stage of completion of the Power Buoy System, the costs that may be incurred in completing it, the potential timescale for its completion and the options available to them in terms of the sale of the Power Buoy System.

The Joint Administrators anticipate that this appraisal process will take c. 3 months to complete.

The earliest date on which the Power Buoy System will be available in a fully complete state will be dependent upon the outcome of the appraisal process.