Opcon: Agrees on main articles with Snowman on establishment of Opcon Powerbox JV for China

  ·
Equity of JV should amount to 98 million CNY (approx. 110 m SEK)

  ·
Snowman invests 50 million CNY (approx. 56 m SEK) for 51 % of shares

  ·
Opcon to grant technology license to JV to a value of 72 million RMB (approx. 81
m SEK), giving Opcon;

    ·
49% of shares in JV, equivalent of 48 million CNY (approx. 54 m SEK)

    ·
24 million CNY (approx. 27 m SEK) in royalties.
Following the LOI signed in July 2014, Energy and environmental technology group
Opcon AB (publ) has come to an agreement with its strategic partner Fujian
Snowman Co. Ltd., Fuzhou, Fujian, China, on the main articles regarding the
formation of an Equity Joint Venture for the marketing, manufacturing and sales
of Opcon’s Waste Heat Recovery technology, the Opcon Powerbox in China and parts
of Southeast Asia.

The main articles have been adopted by the Board of Directors of Fujian Snowman
Co. Ltd., and will be subject to approval by the shareholders of Snowman which
is expected around the 23rd of September. A final agreement for the set-up of
the JV is expected to be signed in the end of September.

The JV will be responsible for commercializing the Opcon Powerbox in China,
which is seen as one of the world’s largest potential market for waste heat
recovery technology with strong growth. According to the feasibility study of
the project conducted by Fujian Snowman Co. Ltd., yearly sales in the JV are
expected to reach over 220 m CNY within two-three years. The JV will also be
responsible for developing Snowman’s existing manufacturing base for future low
-cost, quality manufacturing of Opcon Powerbox ORC and WST in China.

Ownership and Capitalisation

The parties have agreed to form an equity joint venture that will be owned 51%
by Snowman and 49% by Opcon. Initial equity of the JV will be 98 million RMB
(110 m SEK). Snowman will for its 51% pay a total of 50 million RMB. Total cash
contribution of Snowman will be 50 million RMB of which some will be used for
the first reference equipment manufactured in Sweden.

Opcon’s contribution to equity will be by a system technology license of its
proprietary Opcon Powerbox ORC and WST (West Steam Turbine) technology in the
Territory with certain exclusivities in China and parts of Southeast Asia. The
JV will be granted exclusive manufacturing and sales rights of the Opcon
Powerbox in China and exclusive manufacturing and non-exclusive sales rights for
Taiwan, Thailand, Vietnam, Indonesia, Malaysia and North Korea.

Total value of the marketing, manufacturing and sales rights for the Technology
in the Territory has been agreed at 72 million CNY (approx. 81 million SEK), of
which 48 million CNY will be used as Opcon’s equity part in the JV, while the
remaining 24 million CNY will be paid as royalty to Opcon by the JV.

“Waste Heat Recovery is a grand opportunity to a global problem and one of the
most promising venues for energy efficiency and reducing emissions. We believe
By combining Opcon’s state-of-the-art technology and know-how with Snowman’s
outstanding quality control, low-cost manufacturing advantage and local market
presence we aim to create a strong player that can make the Opcon Powerbox an
economic and environmental success in China and abroad says Rolf Hasselström,
CEO of Opcon AB.”

“Our vision for this is not only to develop the very large local Chinese market
but also to create a cost-effective high performance manufacturing base for
Opcon’s sales in other countries as well, says Rolf Hasselström, CEO of Opcon
AB.”

Fuijan Snowman Co. Ltd was founded in 2000 and is listed on the Shenzen stock
exchange. The Group has around 700 employees. Snowman is one of China’s major
actors in industrial cooling. Marketing of its goods and services is primarily
done through the brand Snowkey and RefComp.
For further information, please contact

Niklas Johansson, vice president, Investor Relations, Opcon AB, tel. 46 8-466 45
00, 46-70-592 54 53

Opcon AB, Box 15085, 104 65 Stockholm, Sweden
Tel. 46 8-466 45 00, fax 46 8-716 76 61
e-mail: info@Opcon.se

www.Opcon.se
The Opcon Group

Opcon is an energy and environmental technology Group that develops, produces
and markets systems and products for eco-friendly, efficient and resource
-effective use of energy.

Opcon has activities in Sweden, Germany and the UK. There are around 140
employees. The company’s shares are listed on Nasdaq OMX Stockholm. The Group
comprises one business area:

Renewable Energy focuses on the following areas: compressor technology,
electricity generation based on waste heat, bioenergy-powered heating and CHP
plants, pellets plants, handling systems for biomass, sludge, recycling
industry and natural gas, industrial cooling, flue gas condensation, treatment
of flue gases and air systems for fuel cells.