Accsys Technologies PLC (“Accsys” or “the Company”) announces that its wholly owned subsidiary, Titan Wood Ltd., has signed a licence option agreement with Safwood S.p.A. (“Safwood”), in respect of rights to manufacture Accoya® wood in Italy, Switzerland and Austria for a nameplate capacity of 120,000 cubic metres per annum.

The terms of the agreement include Accsys receiving an initial non-refundable upfront payment of €120,000 in return for a twelve month option for the three European countries. The geographical territory and manufacturing volumes may be extended upon the exercise of the option. As with all previous Titan Wood licence option agreements, terms of the licence would include licence fee payments of €200 per cubic metre of nameplate capacity (€24 million in total) and €22 per cubic metre of production royalties for an initial twenty year period.

The Safwood group, based in Piacenza, Italy, specialises in wood products such as sawn timbers, panels, matchboard panels and laminated beams and panels. It plays a prime role among the sawn timber producers in Russia and trades its products mainly in the European market. It is forecast to have achieved sales in 2008 in the region of €100 million.

Willy Paterson-Brown, Executive Chairman of Accsys commented, “Safwood has an excellent reputation in the European timber industry and beyond, with well established distribution channels, and we are delighted to enter into this agreement. A tremendous synergy exists between our two companies and we are both extremely excited about the huge potential for Accoya® wood in Europe. Initially we will be shipping product to Safwood from our Arnhem production facility in the very near future and look forward to developing various new markets in partnership with them.”

Giampaolo Paraboschi, General Director of Safwood added, “This is an excellent fit both from a company standpoint and also based on the opportunities and challenges within the wood industry today. Safwood understands the requirements of a modern wood manufacturing and distribution company and recognise that Accoya® wood is the premium quality, sustainable, environmental product of the future. Ninety per cent of Safwood’s products are from FSC certified sources, fitting nicely with the impeccable green credentials of Accoya®. We are excited by the prospect of producing Accoya® under licence with Titan Wood in Europe. The uncompromising durability of this product, in all climatic conditions, will give it a strong market position and we look forward to being at the centre of Accoya® wood’s expansion.”