AFC Energy plc (”the Company”) announced on 11 June 2007 that it had entered into a Memorandum of Understanding (”M.O.U.”) with the government of Indonesia relating to the CIUP (Community Integrated Utility Program) project that aims to provide 32 million households with the ability to produce electricity and potable drinking water over the next 10 years. The M.O.U. contains an initial order totalling US$13.5 million for three thousand 3.5kW systems at US$4,500 per system. Supplies are scheduled to begin around the fourth quarter of 2008.
The Company has not yet received the deposit of US$3.15 million which was to be paid within 30 days of the signing of the M.O.U. However, the Company has not incurred any costs other than minimal legal fees in respect of this M.O.U. and AFC Energy will not incur any further costs until the full deposit has been received. The Company will make a further statement about the project in due course.
