Re Agreement

    POSITIVE PROFILE
CORPORATE & FINANCIAL COMMUNICATIONS
PRESS RELEASE
                 
Date:           19 JUNE 2006 - IMMEDIATE
                 
Contact:        Peter Marks,     MicroFuze International Plc [phone]
                                                          or [phone]
                John Wilkes/Hugh Oram, Nabarro Wells      [phone]
                Henry Gewanter, Positive Profile          [phone]
                                                   
                                      MicroFuze International Plc
                                                   
MicroFuze International Plc (MFZ) to make initial investment in a South African Water Treatment Company
                                 and Raise Additional Working Capital


The Directors of MicroFuze International Plc ("MFZ" or "The Company") are pleased to announce that the
Company has entered into an agreement with Western Utilities Corporation (Proprietary) Ltd ("WUC"), a
small start-up South African-based water treatment technology company.  The agreement covers the
acquisition of the 100 shares (representing 100% of the issued capital) currently on issue in WUC for a
nominal amount together with an option to fund the development of a pilot plant to treat acid mine
drainage (toxic water) currently emanating from the mining activities of the various major mining
houses based on the West Rand in South Africa.  The treatment and recycling of the water has become a
significant and growing issue for many of the mining houses in South Africa.

Directors wish to reiterate, as recently explained, that MFZ will continue to focus its activities on
the core metal diffusion technology with its current focus on boronising - having moved away from the
original focus of diffusing chrome into steel.

The original MFZ technology has continued to be developed and directors remain confident that it is
capable of achieving its initial commercial outcomes during the current year.  Whilst the focus will
remain on the commercialisation and rollout of the MFZ technology and identification of other potential
applications for the technology, the South African water treatment opportunity represents a potentially
commercially attractive technology which balances and potentially de-risks MFZ from its current sole
reliance on the microwave technology.

As a consequence of this, the Company has also decided to raise additional capital in the amount of up
to £2.5m at a price of 5.0p per share.  This funding will be provided by institutional investors and
will be used as general working capital to continue to fund the Company's existing technology.  In
addition if the Company proceeds with the option to fund the new water project, funding will over time
be directed to the new project which, as stated above, is at an early stage of development. As a
consequence, funding will also be milestone-based and staged over a 2 year period.

The Directors believe that the continued focus on the MFZ technology and the bolstering of the
portfolio with the new project represents a commercially sound strategy and in the longer term
interests of all shareholders.  Further details on the project will be provided in due course.

                                                                                                  ENDS.

								
MicroFuze International plc