Morphic acquires Swiss energy technology company AccaGen

Press Release
Morphic Technologies AB (publ)                                              
Karlskoga, December 18, 2007


Morphic acquires Swiss energy technology company AccaGen

Morphic Technologies AB's subsidiary MBD AB has concluded an agreement for the
acquisition of the Swiss energy technology company AccaGen. The purchase price
is SEK 104.1 million. AccaGen is a leading manufacturer of electrolyzers for
separating water into hydrogen and oxygen. Through this acquisition Morphic has
now secured access to all critical components for its energy system.

AccaGen was formed in 2003 and has become a leader in the development of
technology for storing energy from renewable energy sources, such as solar, wind
and wave power and biogas. Its core offer consists of a range of patented
high-efficiency electrolyzers for separating water into hydrogen and oxygen. The
hydrogen can be used as fuel in Morphic's fuel cell energy system.

In recent years AccaGen has been focusing on developing the electrolyzer into a
standardized product adapted for major industrial and energy-related customers.
AccaGen's big global returning customers include Linde, ESCOM (the state-owned
South African energy company) and PDVSA (a state-owned oil company in
Venezuela). AccaGen posted a profit before depreciation and financial items for
2006 and is expected to have a marginal impact on the Morphic Group's sales and
earnings in the current year. An analysis of the acquisition will be presented
in the Q3 report. 

AccaGen's CEO acquires Morphic shares in a private placement
The purchase price was SEK 104.1 million. The sellers are the Swiss energy
company Azienda Elettrica Ticinese (AET), Roberto Dall'Ara (the founder and
current CEO of AccaGen) and a small number of private investors. The payment
will be made in cash to all sellers. Roberto Dall'Ara will reinvest SEK 12.3
million in B-shares of Morphic through a private placement at a subscription
price of SEK 20.53 per share, giving him 600,963 B-shares in the company. The
subscription price used is the average of the volume-weighted price of Morphic's
B shares on First North during the period December 4-17, 2007. The issue of
shares will raise SEK 12.3 million before issue costs. 

After the issue Morphic will have a share capital of SEK 6.0 million,
distributed among 150,772,022 shares, of which 5,984,000 are of series A and
144,788,022 of series B.

Third acquisition in a short time
This acquisition is the third that Morphic has undertaken in quick succession.
In August Morphic acquired 55 percent of the shares of the Greek energy
technology company Helbio S.A. and in November the company acquired the Italian
fuel cell maker Arcotronics Fuel Cells S.r.l.

“We have an aggressive growth strategy in energy technology, and are very
pleased that we have now managed to secure all critical components for the
energy system that we have developed. AccaGen has strong expertise in energy
technology”, Jonas Eklind, Morphic Technologies' CEO states in a comment.

Morphic's energy system in brief
With the acquisition of AccaGen, Morphic has now secured access to all key
components (fuel cells, reformers and electrolyzers) in the energy system
developed by the company. 
A basic requirement in electricity production is that the electricity generated
is used immediately. One problem with producing electricity based on wind power
is that the electricity generated is much too uneven to make this a fully viable
alternative to traditional energy sources. As long as the wind blows,
electricity is generated, but at other times the turbine just stands there. 

Until now there has been no efficient way of storing the energy, either
large-scale or in small, freestanding systems, and then using it during times
when the rate of production slows down.

Morphic's energy system introduces an entirely new way of converting, storing
and using energy from renewable sources. The system converts energy from a wind
turbine or other power generator into hydrogen, methanol or other energy bearer
through a chemical process. This fuel can then be stored and converted back into
electrical energy at a later time using fuel cells. 

Eco-friendly alternative to diesel generators
The purpose of Morphic's energy system is partly to enable local production of
electricity at a predefined cost and partly to increase the share of energy
produced from existing renewable sources of energy. In local electricity
production the market for the system is divided into two categories: areas with
infrastructure for electricity production and areas without infrastructure for
electricity production. 

In the first segment Morphic's system can be used for generating electricity
from biogas energy, e.g. from treatment works, recycling facilities and
agriculture. In the second segment Morphic's system can replace diesel
generators. This includes systems for powering telecom base stations. In this
area customers can cut their cost by up to 70 percent by replacing diesel
generators with Morphic's system.

In the second case the system can be used to supplement the power generated from
existing renewable energy sources.

Key components of the energy system 
In somewhat simplified terms, the system consists of four parts:
* Small wind power stations. 20 kW - 500 kW. Developed in Morphic Business
Development.
* Reformers. Used for converting e.g. biogas or ethanol into extremely pure
hydrogen. Here Morphic's access to key components was secured through the
company's acquisition of 55 percent of Helbio S.A.
* Electrolyzer. Used to separate water into hydrogen and oxygen. Here Morphic's
access to key components has been secured through the acquisition of AccaGen. 
* Fuel cells. Energy converters that make it possible to efficiently convert
hydrogen and other energy bearers into electricity and heat. Here Morphic's
access to key components was secured through the acquisition of Arcotronics Fuel
Cells S.r.l.

Efficient fuel in fuel cell systems 
Several types of fuel can be used to power fuel cells. Of these, hydrogen is the
most energy-efficient. Hydrogen does not exist in its elemental form in nature,
but needs to be produced, either from other fuels (fossil or non-fossil) or by
electrolysis of water.

To date, practically all hydrogen used in industry has been produced from
natural gas, petroleum or other fossil fuels, or derived as a byproduct from
other processes. 

As environmental requirements increase and technology continues to advance,
hydrogen produced from renewable fuels such as biogas or ethanol or by
electrolysis of water will become increasingly common. One of the key advantages
is that the production process theoretically has no impact on the environment.
Producing hydrogen through electrolysis (separating water into hydrogen and
oxygen) requires efficient electrolyzers. In this area AccaGen is one of the
leading players in the market. 


For further information, please contact:
Johannes Falk, Information and Investor Relations Manager, Morphic Technologies
AB
Phone: +46 (0)706- 76 73 93, E-mail: johannes.falk@morphic.se.


Morphic Technologies is a Swedish industrial group that specializes in energy
systems for renewable electricity production as well as resource-light
production techniques for efficient component manufacture. The operations are
located in Sweden (Karlskoga, Filipstad, Kristinehamn and Göteborg) as well as
in Greece and Italy. The Company's class B shares are listed on the Stockholm
Stock Exchange's trading site, First North, with Remium Securities as Certified
Advisor. For more information, see www.morphic.se

DISCLAIMER: THIS DOCUMENT IS A TRANSLATION FROM THE SWEDISH ORIGINAL. NO
GUARANTEES ARE MADE THAT THE TRANSLATION IS FREE FROM ERRORS.