Isle of Man, UK--(Marketwire - May 29, 2007) - PRESS RELEASE

For Immediate Release

29 May 2007

                              CLIMATE EXCHANGE PLC


The Chicago Climate Exchange, a wholly owned subsidiary of Climate Exchange Plc, announces that it is forming the California Climate Exchange. The full text of the press release follows:

        Chicago Climate Exchange, Inc. (CCX) announces formation of the
                       California Climate Exchange (CaCX)

 New Exchange to develop financial instruments relevant to California's 
                         Global Warming Solutions Act

(May 2007) Chicago Climate Exchange, Inc. (CCX) announced today that it is forming the California Climate Exchange (CaCX) to develop and trade financial instruments relevant to the California Global Warming Solutions Act, AB32, recently signed by Governor Arnold Schwarzenegger, which calls for a mandatory reduction in California's greenhouse gas emissions as of 2012, with mandatory reporting of emissions to commence in 2008.

"We congratulate the pioneering initiative of the great State of California, the legislature and the people of California and know that implementing any emissions trading that may ensue will require price transparency and efficient, exchange-based systems for maximum success," said Dr. Richard L. Sandor, Chairman and CEO of Chicago Climate Exchange.

He added, "CCX has uniquely already accomplished a demonstration linkage between CCX, the only operational cap-and-trade greenhouse gas system in the United States, and the only other operational trading system, the European Union's Emissions Trading Scheme, through our member, Baxter Pharmaceuticals. To the extent a market emerges in California, CCX and the California Climate Exchange can easily and cost-efficiently accomplish linkage with other national, regional and global markets."

Product development will be ready for operation in accordance with the evolution and needs of California and AB32. CCX has a number of members with headquarters and operations in California, including Sacramento County, the cities of Oakland and Berkeley, Safeway, Cloverland, Environmental Credit Corporation, Intel, and Sony Electronics.


Richard Sandor, Chairman, Climate Exchange Plc        001 312 554 3370
Neil Eckert, CEO, Climate Exchange Plc                0207 382 7801
Peter Rigby/Alexandra Parry, Haggie Financial         0207 417 8989

About Climate Exchange Plc

Climate Exchange Plc is a holding company whose subsidiaries are principally engaged in owning, operating and developing exchanges to facilitate trading in environmental financial instruments including emissions reduction credits in both voluntary and mandatory markets. The two main businesses are the Chicago Climate Exchange (CCX) which operates a voluntary but legally binding cap and trade system including an exchange for CO2 emissions as well as SOx and NOx contracts in the US and internationally, and the European Climate Exchange (ECX) which operates an exchange focussed on compliance certificates for the mandatory European Emissions Trading Scheme.

About Chicago Climate Exchange, Inc.

CCX is a financial institution whose objectives are to apply financial innovation and incentives to advance social, environmental and economic goals. CCX is the world's first and North America's only legally binding rules-based greenhouse gas emissions allowance trading system, as well as the world's only global system for emissions trading based on all six greenhouse gases. CCX members are leaders in greenhouse gas management and represent all sectors of the global economy, as well as public sector innovators. Reductions achieved through CCX are the only reductions in North America being achieved through a legally binding compliance regime, providing independent third party verification provided by NASD and price transparency. The founder, Chairman and CEO of CCX is economist and financial innovator Dr. Richard L. Sandor, who was named a Hero of the Planet by Time magazine for his founding of CCX. For a full list of CCX members, daily prices and other Exchange information, see

CCX, a US corporation, launched its trading platform in 2003. In 2005, CCX launched the European Climate Exchange (ECX), now the leading exchange operating in the European Union Emissions Trading Scheme. CCX also launched the Chicago Climate Futures Exchange (CCFE), a CFTC-regulated futures exchange for U.S. SO2 allowances and U.S. NOx Ozone Season allowances, the world's first environmental derivatives exchange. Since 2006, CCX, ECX and CCFE have been owned by Climate Exchange Plc, a publicly traded company listed on the AIM of the London Stock Exchange.

About European Climate Exchange

The European Climate Exchange (ECX) manages product development and marketing of Carbon Financial Instruments (CFI) futures and options contracts on CO2 EU allowances traded under the EU Emissions Trading Scheme.

ECX CFI contracts are listed and traded on the ICE Futures electronic platform, offering a central marketplace for emissions trading in Europe with standard contracts and clearing guarantees provided by LCH.Clearnet. ECX/ ICE Futures is the most liquid, pan-European Exchange for carbon emissions trading. More than 80 leading global businesses have signed up for membership to trade ECX products. In addition, several hundred clients can access the market via banks and brokers.

                      This information is provided by RNS
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