Trading Update

RNS Number:6885P
Applied Intellectual Capital plc
10 March 2008

10 March 2008



                          APPLIED INTELLECTUAL CAPITAL


                                 Trading Update


Applied Intellectual Capital ("AIC") (AIM: AINC) funds, develops, patents and
commercializes electrochemical and advanced separations technologies in clean
energy, electricity storage, water treatment, metals recovery and other emerging
markets. AIC today provides the following update on progress made with its
electrode (BLAB), battery (Plurion), bio-fuels (RedOx) and mining & metals
recovery (Everclear) technologies.


1.         BACKGROUND


AIC is developing Bipolar Lead Acid Batteries ("BLAB") for use in hybrid and
light-duty electric vehicles. AIC has developed a novel class of electrodes that
are positioned to begin early stage commercialisation of this thin-film battery
technology.


The rights to AIC's battery technology are owned by Plurion Limited ("Plurion"),
in which AIC now holds a stake of approximately 80%.


AIC's bio-fuel synthesis technology is licensed exclusively to RedOx Biofuels
Limited ("RedOx"), in which AIC now holds a 100% stake.


The rights to AIC's mining and metals recovery technologies are owned by
Everclear Solutions, Inc. ("Everclear"), in which AIC owns an effective 45%
interest.


2.         BLAB: NEW "FOIL" ELECTRODE TECHNOLOGY AND STRATEGIC RELATIONSHIP WITH
PLASMA QUEST LTD


AIC is pleased to announce that it is developing a novel high performance
electrode material which has broad applications such as advanced batteries,
hydrogen generation, metal refining, bio-sensors and water purification.


The new electrode is based on an electrically conducting foil with a proprietary
nano-coating which is highly conductive, adherent, corrosion resistant and
flexible.  The nano-coating is a proprietary glass material, which AIC is
developing with the help of its strategic partners Plasma Quest and Prof. Frank
Walsh of The University of Southampton.


AIC has entered into an MOU with Plasma Quest Ltd., ("Plasma Quest") to continue
the development and commercialization of this technology across a range of
applications.  AIC has separately engaged the University of Southampton to
characterize these materials in a range of electrochemical applications.


The development of an electrically conductive glass coating is a significant
scientific and engineering achievement.  This new coating should be compatible
with a range of catalysts and has the potential to provide improved electrode
performance with reduced catalyst loadings.


AIC is deploying its foil electrode in two of its advanced battery projects
(BLAB and Plurion) and is evaluating its use in hydrogen production, bio-sensors
and metal electro-refining.


Prof. Frank Walsh is a member of AIC's Technology Advisory Board, Deputy Head of
the School of Engineering Sciences and Professor of Electrochemical Engineering
at The University of Southampton.


Robert Clarke, CTO of AIC noted:


"This has been a personal mission and a core research area of AIC's for many
years.  Our success demonstrates AIC's ability to develop fundamentally new
materials. The opportunity to share these technological advances across our
projects and ventures is central to AIC's value model."


Prof. Mike Thwaites CEO of Plasma Quest commented:


"Plasma Quest is delighted that AIC has chosen our advanced plasma technology
over competing systems.  We believe that we are uniquely positioned to assist
with the scale-up and commercialization of this new material."


Prof. Frank Walsh of Southampton University commented:


"The availability of suitable high performance electrodes lies at the heart of
the successful commercialization of a broad range of electrochemical devices.
This is an exciting opportunity which continues Southampton's capabilities in
emerging nano-materials."


3. PLURION - BATTERY TECHNOLOGY


AIC is now able to bring additional technologies from its other programs to
Plurion.  Initially, these include the new high performance foil electrode
announced above and the development of a new Methane Sulfonic Acid (MSA) based
electrolyte.  Both of these potentially represent significant technological
advances for Plurion.


The new foil electrode utilizes a proprietary conductive glass coating, which
AIC has developed with the help of its strategic partners.  This new conductive
glass coating not only possesses exceptional conductivity but is resistant to
corrosion and compatible with a range of catalysts.  Although this foil
electrode is in the development stage, an early "proof of concept" version is
already operating successfully at full size in a pre-production electrolyser at
Plurion's Glenrothes facility.  The proof of concept version has thus
demonstrated the compatibility of foil electrodes with Plurion's existing
electrolyser designs and chemistries.


The new proprietary MSA based electrolyte provides the long term potential to
achieve substantially higher energy storage densities with lower overall
complexity than is possible with other flow battery chemistries.  Importantly,
this new electrolyte requires only one electrolyte circuit and eliminates the
need for membranes and catalysts.


Mike Woodroffe, Chairman of Plurion, commented:


"In order to exploit sources of intermittent renewable energy the electricity
industry desperately needs to be able to store electricity. Once commercialized,
our technology is expected to provide an economically viable means for doing so.
These additional technologies significantly expand Plurion's potential product
portfolio and will help Plurion to develop the highest performing and most
reliable family of high capacity storage technologies.  "


Stephen Clarke, CEO of AIC added:


"The ability to share technological advances across our projects and ventures is
central to AIC's value model.  By bringing technologies to Plurion from other
projects, we are increasing the potential to reduce Plurion's product
development cycle and accelerate commerciality."


4. RedOx - BIOFUELS


RedOx biofuels is pleased to announce the completion of an independent review of
its ethanol feed stock synthesis by Lifecycle Associates of California.  This
review has confirmed the viability and cost effectiveness of RedOx's proprietary
technology for the production of ethanol from sewage waste and rice straw.  A
downloadable copy of the independent report is being made available from RedOx's
website.


With initial characterization of its ethanol feedstocks completed, negotiations
are underway for demonstration sites with rice straw and sewage waste
feedstocks.  Work has also begun on the synthesis of higher value fuels,
bio-degradable plastics and water treatment chemicals from waste.


Kim Ogaard Nielsen, CEO of RedOx, noted:


"RedOx has successfully demonstrated and validated the feasibility of producing
ethanol commercially from two of the world's most intractable waste materials,
using its proprietary technology.  As we begin the synthesis of higher value
fuels and polymers from waste material feedstocks we are proving the value of
RedOx's value proposition."


In separate developments, Applied Intellectual Capital ("AIC") (AIM: AINC) and
Aspen Clean Energy are jointly announcing the termination of the proposed merger
of Aspen with RedOx Biofuels.  Despite the best efforts of all concerned, it was
found to be impossible to deal effectively with a restrictive covenant that
Aspen is subject to.  This decision does not materially impact RedOx's business.


Costs, which are not estimated to be significant, will be borne by the parties
incurring them as per the terms of the MOU.


Stephen Clarke, CEO of AIC, noted:


"While legal advice was that Aspen's restrictive covenant was unenforceable
under EU law, this still represented a potential financial risk to RedOx and
could have exposed Aspen's shareholders to unreasonable liability."


Keith Smith, Chairman of Aspen, commented:


"While the Board of Aspen was enthusiastic about RedOx's technology, we had to
conclude that the proposed merger presented an unacceptable risk of breach for
certain of Aspen's shareholders."


5.         EVERCLEAR - MINING METALS RECOVERY


An AIC / Everclear field demonstration team is currently at Weatherly
International's NCSL site in Tsumeb, Namibia operating a small pilot scale unit.
The team has successfully produced 4/9 purity copper plate, from NCSL tailings
materials using its proprietary digestion and electro-winning process.  This
marks the first of a series of pilot and scale-up activities on alkaline
tailings that are planned to be conducted at the NCSL site during 2008.
Everclear also intends to establish an additional scaled-up digestion and
electro-winning process at an independent pilot facility in Africa, which will
produce full size refined copper cathodes from NCSL and other tailings.


Dr. Thom Seal has been appointed as Everclear's Chief Technology Officer.  Dr.
Seal, who has Masters and PhD qualifications in Mining and Metallurgical
Engineering, brings over 35 years of experience to Everclear, having worked in
almost all aspects of mining engineering including exploration, extraction, and
physical, chemical and hydrometallurgical processing of minerals for both
precious and base metals.   He is the inventor of the 'Hydro-Jex'
3-dimensional-flow heap-leach technology, and was formerly a senior technical
leader in Newmont Mining's operations  in Nevada.


Further impetus has been added to Everclear's capability with the appointment of
Tony Davidson to head up Everclear's African Operations.  Mr. Davidson is a
South African national, was educated in Zimbabwe and attended Witwatersrand
Technicon (Mining) in South Africa and has a 27 year association with mining in
the region.  He has a background in mining contracting and operations management
in South Africa, Zambia, Botswana, Namibia and Zimbabwe.  Tony's role will be to
facilitate Everclear's pilot operations in Africa and lead its business
development activity.  This will focus on the development of mining rights for
tailings dams containing copper and cobalt in Zambia and Botswana.


Tony Davidson commented:


"I believe that, with the demand for commodities growing almost daily, the AIC/
EverClear technology will significantly influence the mining industry for years
to come, and I'm excited to be part of this venture."



ENQUIRIES:


Applied Intellectual Capital:       Dr. Stephen Clarke           Tel. [phone]

Pelham Public Relations :           Archie Berens                Tel. [phone]

Nabarro Wells:                      Marc Cramsie                 Tel. [phone]




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