DGAP-Adhoc: PETROTEC AG: Sales up 37%, new main shareholder IC Green Energy with 42.8%

PETROTEC AG / Interim Report/Offer

20.11.2008 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Petrotec increases sales by 37 %

IC Green Energy Ltd. future main shareholder with 42.83 %

  - Allocations to provisions for pending losses and impairment adversely
    effect results

  - Collection of used cooking oil increases by almost 50 %

  - 2008: Correction of guidance

Borken, November 20, 2008 – Petrotec AG (ISIN DE000PET1111), manufacturer
of climate friendly biodiesel on the basis of used cooking oil, increased
its total sales, compared to the previous year, in the first three quarters
of 2008 by 37.4 % to 65.7m EUR. Sales increase in the third quarter by 53.8
%, as opposed to the third quarter 2007, to 24.7m EUR. This was primarily
due to higher production and increased sales (to which also the new
biodiesel plant in Emden contributed) and price effects.

After the first nine months, significantly increased material costs
together with allocations to provisions for pending losses have led to an
EBITDA (earnings before interest, taxes, depreciation and amortisation) of
14.4m EUR (previous year: -2.3m EUR). Due to impairments on intangible
assets and current assets the EBIT (earnings before interest and taxes) for
the months January to September amounts to -29.1m EUR (previous year:
-38.9m EUR).The net result after taxes amounts to -28.7m EUR (previous
year: -38.2m EUR) which results in an earnings per share (EPS) of -2.73 EUR
(previous year: -3.64 EUR). Liquid funds per the end of the reporting
period amounted to 4.1m EUR. The Management Board corrects the August 2008
guidance for the financial year 2008 and now expects sales of about 80m EUR
(previously: 90m to 100m EUR) and a negative EBITDA of 18m EUR (previously
-8m to -9m EUR).

IC Green Energy future main shareholder with 42.83 %

On 31 August 2008, IC Green Energy Ltd., Tel Aviv, Israel, has, in
accordance with Sec. 10 para. 1 and Sec. 29 para. 1, 34 of the German
Securities Acquisition and Takeover Act (Wertpapiererwerbs- und
Übernahmegesetz), announce that it purchased a total of 4,497,431 shares in
Petrotec AG (approximately 42.83 % of the registered share capital) from
Petrotec AG's major shareholder, Petrotec S.à r.l., on the same day. The
consummation of the share purchase agreement was subject to antitrust
approval from the competent authorities which has been granted in the
meantime.

On 22 October 2008, IC Green Energy Ltd. has published an announcement in
the German Federal Electronic Gazette, that the German Federal Financial
Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht) has
prohibited an intended voluntary public takeover offer of IC Green Energy
Ltd. pursuant to Sec. 15 para. 1 no. 1 of the German Securities Acquisition
and Takeover Act.

On 18 November 2008, Petrotec AG has received a voting rights announcement
(Stimmrechtsmitteilung) pursuant to Sec. 25 para. 1 of the German
Securities Trading Act (Wertpapierhandelsgesetz). According to that, IC
Green Energy Ltd. directly holds financial instruments which grant the
right to acquire shares of Petrotec AG securitizing 4,497,431 voting
rights. Thus, the relevant threshold of 5, 10, 15, 20, 25 and 30 % of the
voting rights in Petrotec AG would have been exceeded. According to the
announcement, the financial instruments fall due on 1 December 2008.
Thereupon, Petrotec AG has published the corresponding voting rights
announcement pursuant to Sec. 21 of the German Securities Trading Act on 19
November 2008.

Based on the voting rights announcement, Petrotec AG assumes that the share
transfer will be executed on 1 December 2008, which would constitute the
acquisition of control (Kontrollerwerb) pursuant to Sec. 35, 29 para 2 of
the German Securities Acquisition and Takeover Act and hence would
generally trigger the obligation to conduct a mandatory takeover offer.

Petrotec AG has furthermore been informed that IC Green Energy Ltd. is
currently evaluating and having discussions with the German Federal
Financial Supervisory Authority about the prospects of an application for
an exemption from a mandatory takeover offer pursuant to Sec. 37 of the
German Securities Acquisition and Takeover Act instead of publishing such
mandatory takeover offer pursuant to Sec. 35 of the German Securities
Acquisition and Takeover Act. As Petrotec AG is not involved in this
process, it is not in a position to comment neither on a mandatory takeover
offer pursuant to Sec. 35 the German Securities Acquisition and Takeover
Act nor an application for an exemption pursuant to Sec. 37 the German
Securities Acquisition and Takeover Act.

Own collection of used cooking oil increased by 50 %

In the first nine months Petrotec increased its own collection by almost 50
% as opposed to the previous period. Petrotec's subsidiary Vital
Fettrecycling by now recycles used cooking oil of more than 16,000
restaurants and food producers in Europe. This growth results from internal
effects trough the own sales team and co-operations as well as externally
trough mergers and acquisition activities. In October Vital set up a
subsidiary in France to expand the European recycling services.

Biodiesel from used cooking oil allows for a reduction of 87 % in CO2
emissions

The biodiesel Petrotec produces with its proprietary technology from the
refined used cooking oil is by far the most climate-friendly and
sustainable biodiesel that can be produced today. It is made from waste and
does not compete with food production, as do fresh vegetable oils. The
methodology used by the EU Commission for its EU Directive proposal on
'Promoting the Use of Renewable Energy Sources' and from the German Federal
Government for its biomass regulation on sustainability
(Biomassenachhaltigkeitsverordnung) confirms that biodiesel made from used
cooking oils has a CO2 reduction potential of at least 87%. Meaning that
biodiesel derived from used cooking oil contributes more than twice as much
to avoiding CO2 emissions than does biodiesel based on rapeseed oil.

Blending market dominates

In the first nine months, the costs of material ratio have significantly
increased to 99.4 % as opposed to the previous period with 87.9 %. This is
mainly due to the higher price for used cooking oils and other feedstock.
Petrotec sold the majority of its production into the blending market (B5)
to mineral oil producers. Sales into the fuel market (B100) was lower than
in the previous year since Petrotec committed most of its production
capacity to the blending market and due to a reduced demand based on the
increased tax of 15 Cent per litre on fuels since 1 January 2008.
Sales-wise, the sales split for the first nine months into 61 % for the B5
business (previous year: 34 %) and 39 % for B100 contracts (previous year:
66 %).

Assets and financial condition

Petrotec AG's equity ratio as of 31 December 2008 was 44.1 % (31 December
2007: 63.6 %), and liquid funds were at 4.1 million EUR (31 December 2007:
20.5 million EUR). Petrotec's balance sheet total as of the end of the
period where 51.7 million EUR, 29.3 million EUR less than as of 31 December
2007. In the third quarter Petrotec invested 2.9 million EUR preliminary in
supplemental building activities in its new biodiesel plant in Emden.
Preliminary due to the loss for the period net equity reduced to 22.8
million EUR (31 December 2008: 51.5 million EUR). Long term debt to banks
remained unchanged at 18.1 million EUR as of the end of the period.

Outlook: Loss impairments effect results for the financial year 

Markets for crude oil and agriculture raw materials have shown significant
corrections at the beginning of the third quarter. Consequently, Petrotec
can now react flexibly with its back-to-back strategy since the biodiesel
contracts concluded at the end of 2007 terminated at the end of September
2008. Also, prices for used cooking oil have in the meanwhile significantly
reduced to a level of about 400 EUR/ton – even though they typically react
with delay to changes in prices for unused oils due to an intransparent and
heterogeneous market environment. Petrotec estimates that it will be in a
position to sell significant quantities once the demand for FAME 0 for
deliveries in 2009 increases.

The Management Board corrects the annual guidance for the business year
2008 due to impairments and the current market environment. The Management
Board now expects sales of about 80 million EUR (previously 90 – 100
million EUR) and a negative EBITDA of about 18 million EUR (previously 8 –
9 million EUR EBITDA) for the financial year.

Disclaimer
This press information constitutes neither an offer to buy or to sell
shares or other securities issued by Petrotec AG, nor a solicitation of
offers to buy or subscribe to securities. The shares offered during the IPO
have already been placed.

About PETROTEC
Since November 2006, Petrotec AG has been listed in the Prime Standard
segment of the Frankfurt Stock Exchange under WKN PET111, ISIN
DE000PET1111. Petrotec is one of the pioneers of the German biodiesel
industry. The company started as early as 1998 with the development of a
process to produce biodiesel from used frying and deep-frying oil.
Petrotec’s first industrial biodiesel production plant went turn-key in
2000. Petrotec’s proprietary technology is capable of transforming virgin
vegetable oils such as rapeseed, soybean or palm oil as well as
hard-to-process oils and fats such as used cooking oils, animal fats and
oils or fish oil in a single fully continuous process into biodiesel and,
thus, is truly a multi-feedstock technology. The annual capacity of the
plant in Borken (Westphalia), Germany, is 85,000 t biodiesel. In the first
half of 2008 a second production has commenced operations in the deep-sea
port of Emden with an annual capacity of 100,000 t. Unlike many of its
competitors, Petrotec in its ongoing operations has for years now primarily
produced biodiesel from used cooking oils in a fully continuous process.
Treated used cooking oils as feedstock for biodiesel production is up to 50
percent cheaper to procure than the rapeseed oil predominantly used by
Petrotec's rivals in Europe. This enhances Petrotec's cost-competitiveness
over other manufacturers of biodiesel, as 70-90 percent of biodiesel
production costs relate to raw materials.

For further information, please contact

PETROTEC AG
Falk von Kriegsheim
Head of Investor Relations / Public Relations
Fürst-zu-Salm-Salm Strasse 18
46325 Borken
Germany
Tel +49 (0)2862 910060
Fax +49 (0)2862 9100760
Mobil +49 (0)173 6291344

f.kriegsheim@petrotec.de
www.petrotec.de
DGAP 20.11.2008 
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Language:     English
Issuer:       PETROTEC AG
              Fürst-zu- Salm-Salm-Str. 18
              46325 Borken-Burlo
              Deutschland
Phone:        +49 (0)2862 9100 19
Fax:          +49 (0)2862 9100 99
E-mail:       info@petrotec.de
Internet:     www.petrotec.de
ISIN:         DE000PET1111
WKN:          PET111
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, München, Hamburg, Düsseldorf, Stuttgart
End of News                                     DGAP News-Service
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