Press Releases > Freeplay announces landmark Joint Venture in India

2006-10-10

Freeplay announces landmark Joint Venture in India

Freeplay Energy plc, the sustainable energy company that captures, stores and delivers electric power to self-powered devices such as radios, torches and mobile phone chargers, today announces that it has signed a landmark agreement to enter into a 50/50 joint venture with the Narang Group, one of Indiaís leading industrial houses.

The deal allows Freeplay to enter the Indian market with a highly respected and experienced domestic partner, creating an exceptional platform for the development, manufacture and distribution of Freeplay's existing and future products and technologies into one of the world's largest markets for its products and services.

Freeplay will provide product development for future and existing products along with manufacturing and marketing expertise while the Narang Group will provide business leadership in India, utilising the sales, marketing and distribution skills they have built up over the last 100 years as a respected Indian group. The joint venture combines Freeplay's innovation with a leading Indian brand in a market that, for example, has five million new mobile phone users a month*.

Initially the joint venture will focus on sales to the government of India and the governments of the 29 states and 6 Union Territories that make up the Indian state and will utilise Freeplay's existing products to provide lighting and power solutions (FreeCharge hand powered charger and the foot powered FreeCharge Weza). In the second phase, the focus will be on providing appropriate off the grid energy solutions for the rural community, again targeting regional and state governments as potential customers. In order to provide the large scale off the grid solutions required by this market, Freeplay has already developed new, more powerful generators beyond the prototype stage.

Rory Stear, Executive Chairman, commented:
"We are extremely excited to be entering into a joint venture agreement with the Narang Group and firmly believe that we are partnering with one of the best possible companies in India. The fact that Devin Narang, the Narang Group Chairman, will personally be leading the day to day management of the joint venture, underscores their commitment to bringing 100 years of success in Indian business to this new venture. It is important to remember that, of the 35% of the world's population who have no access to electricity, a large proportion of these live in India so the potential applications for Freeplay's products and technology are significant. Factor in the vigorous growth of the Indian economy and there is no doubt that this deal represents an outstanding opportunity for Freeplay to accelerate its global growth strategy and bring electricity to millions who currently live without it."

"This landmark joint venture follows an exceptional six months of corporate activity for Freeplay. We have completed a reverse takeover of our US distribution partner, Dixie, signed a 5 year contract for 1.1 million mobile phones units per annum with WP Phone and a 3 year agreement to supply Unicef and through them the entire United Nations, with our Lifeline radio product on a non compete basis. We look forward to working with our new partners and employees at this exciting time for the company."

End

* Source: Airtel (largest network in India) and The GSM Association

For further Information
Freeplay Energy plc                                                  020 7851 2630
Rory Stear, Chairman and Chief Executive Officer

Weber Shandwick Square Mile                                   020 7067 0700
Rachel Taylor / James White

Notes to Editors:
Freeplay Energy's core technology revolves around the efficient conversion and storage of applied human energy and the delivery of this energy on demand as electricity to create self-powered electronic devices. Initial applications include radios (both consumer and humanitarian), torches, mobile phone chargers and standalone foot chargers and the Company has a new product development plan which anticipates broadening the application of its technology into new product categories. Freeplay believes it was first to market and commercialise self-powered technology and that it is recognised as a leading brand in this market for such products. Further information about Freeplay Energy and its products can be found at www.freeplayenergy.com.

The Narang Group is one of the oldest industrial houses of India. The Group was established in 1905 and had its business interests in Sugar, Distilling & Brewing. The Group was started by the late (Dr.) Sir.G.C. Narang who was a pioneer amongst Indian Industrialists and had set up one of the first Indian owned sugar mills in the then undivided India. The Group recently sold its interests in the Distilling and Brewing business and is now focusing on new areas of growth especially in the Non-Energy Sector.

Today, the Group is led by Devin Narang, the former Chairman of SAB Miller's Indian operations and an Executive Committee Member of the Federation of Indian Chambers of Commerce & Industry. The Group currently operates across a broad spectrum of business areas in India and has interests in investment and property, commodities trading and consultancy services.

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