creating value through solutions for unmet needs

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creating value through solutions for unmet needs
INVESTOR PRESENTATIONOCTOBER 2007
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INTRODUCTION
XL TechGroup identifies unmetmarket needs in the
MedTech, BioTech, and EcoTech sectors and then
systematically creates and develops successful
world-changing technology businesses to exploit
these needs.
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OVERVIEW

• we build market-changing companies using
  world-changing technologies
• we are creating significant market value which is
  not yet reflected in our share price
• However...
• we have reached an inflexion point where that
  value is starting to crystallise now
• we anticipate a number of announcements over the
  coming months that will support this
• we anticipate paying the first of a series of
  significant shareholder distributions in 2008

XL TechGroup is in the business of significant
value creation
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COMPANY PROFILE

• engine which creates, manages, and grows to
  liquidity a succession of global, market changing
  companies
• entirely market driven versus technology focused
• uses a unique, proven methodology for rapid
  company building, which has resulted in a high
  success rate (gt 80) over 14 years
• core senior, experienced business and technical
  team working within the XL methodology for over
  14 years
• strong corporate and technology partnerships
• US corporation, listed on AiM (XLT)

creating value through solutions for unmet needs
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COMPANY HISTORY
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we believe that XL TechGroup is now reaching a
clear inflexion point in its potential valuation
profile
QuoNova formed PetroAlgae formed
DxTech formed AgCert IPO
XL Vision creates 8 companies with over US2.5bn
value
TyraTech formed XL TechGroup IPO
TyraTech IPO
Management buy-out of XL Vision and creation of
XL TechGroup
AgCert formed
John Scott team form and create XL Vision
1994
2001
2002
2004
2005
2006
2007
1993
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WHY WE DO WHAT WE DO ..

• big companies are good with incremental
  technology changes but terrible with disruptive
  solutions (Clayton Christensen)
• disruptive needs are often known but not met
• consequently, XL TechGroup partners with major
  companies to provide disruptive solutions to
  global unmet needs
• thereby, XL TechGroup massively leverages market
  research, contacts, and channels from BigCo
  partners
• lends to market credibility
• ability to grow rapidly     

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STRATEGY

• employ proven methodology to create 12 new,
  world changing companies each year
• select only those opportunities which can produce
  realisable valuations of at least US400 million
  within four years
• retain controlling or significant stakes
• maintain sufficient technology and discovery
  partnerships to create a continuously evolving
  pipeline of new opportunities
• deliver large-scale shareholder distribution
  events

They actually build them up into proper products
instead of just trying to grab and flip IP. We
love them.
Dr. Tom Cripe External Business Development
Procter Gamble
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METHODOLOGY
Reducing technology development risk
Reducing market adoption risk
Reducing competitive risk
Reducing management risk
Reducing liquidity risk
Discover Identify unmet market needs through
discovery leaders
Match Source matching technologies from
technology partners and create opportunity
Select Test strategy against market adoption with
predictive algorithm to select the best
opportunities
Develop Develop company by adapting strategy to
market transformation created by disruptive
technology
Scale Scale company to enable liquidity event
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DISCOVERY AND TECHNOLOGY PARTNERS
Unmet market needs
Discovery partners corporates
XL TechGroup
University/RD technology partners
Corporate technology partners
IP
IP
Complete opportunities
Test strategy and IP against market adoption
Start new company
Customer/partner
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XL TECHGROUP COMPANIES

• AgCert (AGC)
• a global leader in the production of carbon
  credits
• TyraTech (TYR)
• the sole provider of a new category of safe,
  effective and natural insecticide and
  parasiticides
• DxTech
• moving the world from centralised to distributed
  diagnostics
• PetroAlgae
• creating a sustainable, renewable, cost-effective
  substitute for petroleum oil
• QuoNova
• addressing the significant need for safe,
  effective agents against the damage caused by
  bacterial biofilms
• GenXL
• Department of 9s, adding value over and above
  the XL TechGroup core model

XL TechGroup moving to next level of significant
growth and success, above and beyond AgCert
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AGCERT INTERNATIONAL PLC

• unmet market need industrial scale production of
  greenhouse gas credits to satisfy the annual
  global demand for hundreds of millions of credits
  
• disruptive technology proprietary UN approved
  methodology that reduces emissions from animal
  waste management systems by 95
• market changing elements
• market leader in credit provision
• creating its own credits in volume
• AgCert owns its own credit creation IP
• anticipated actual near-term proof points
• new deal would mitigate almost all credit
  delivery risk going forward
• backlog of over 45m credits being established
  (under construction heads of terms under
  negotiation)
• existing biodigesters now delivering on schedule
• competitors being advised about potential patent
  infringements
• new strategic initiatives already producing
  results
• XL TechGroups equity interest 18.8
• www.agcert.com

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TYRATECH INC.

• unmet market need demand for safer,
  environmentally friendly pesticides and
  parasiticides capable of matching or beating
  existing chemical equivalents
• disruptive technology platform based on cloned
  insect chemoreceptors rapidly screened against
  new combinations of natural plant oils
• market changing elements
• the only broad-based natural pesticides that are
  most often more effective than chemical poisons
• changing the dynamics of health in the developing
  world
• anticipated actual near-term proof points
• insecticide partners seeking to broaden their
  relationships
• looking to meet additional key partner milestones
• Natures Natural anticipated to move into revenue
  soon
• target markets worldwide US23 billion market
  opportunity that includes agricultural and
  horticultural applications, consumer
  applications, professional pest control
  applications, governmental uses, and human and
  animal healthcare applications
• XL TechGroups equity interest 47.9
• www.tyratech.com

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DXTECH LLC

• unmet market needs
• provide cost-effective, diagnostic test results
  in minutes, to reference laboratory standards, in
  a Point-of-Care (POC) environment
• reduce the need for expensive, highly skilled
  centralised laboratory infrastructures in the
  developing world
• disruptive technology fully automated POC device
  that enables all routine blood tests currently
  performed in clinical reference labs, with
  immediate feedback and diagnosis
• market changing elements
• the only solution that does all common tests
  (including haemotology) in the doctors office in
  real time
• produces real time diagnostic information for
  quicker, more accurate, enhanced healthcare
  decision making
• provides an immediate significant increase, at
  low cost, to doctors incomes in the US The
  Doctor becomes the Lab
• anticipated actual near-term proof points
• first alpha system anticipated in 2008
• additional assays being proved to reference
  laboratory gold standards
• first non-US joint venture being negotiated
• target markets US48 billion diagnostic testing
  market in USA, (source Washington G2 Report
  Laboratory Industry) including US30 billion
  routine tests eligible for distributed
  diagnostics
• XL TechGroups equity interest 82.5
• www.dxtech.com

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PETROALGAE LLC

• unmet market needs replace petroleum and food
  oils with an environmentally-friendly, scalable,
  and profitable alternative
• disruptive technology unique algae strain that
  matures in 24 hours, converts 50 of its weight
  into oil, can be harvested daily, and generates
  200x more oil per acre than traditional biofuel
  crops like soybean
• market changing elements
• the only solution for biodiesel feedstock that
  allows refiners to make a profit
• the only solution capable of producing commercial
  quantities of oil on small amounts of land
• could allow some countries to become oil
  independent via a carbon neutral fuel
• anticipated near-term proof points
• complete process prototype and design commercial
  facility
• many geographic specific licensing deals targeted
  outside the USA, several already under discussion
• target markets
• US100 billion markets for biodiesel in each of
  USA ROW
• US10 billion market for nutriceuticals, fatty
  acids, petrochemicals and cosmetics
• XL TechGroups equity interest 94.1
• www.petroalgae.com

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QUONOVA LLC

• unmet market need
• produce safe, efficacious agents in the global
  fight against infection and damage caused by
  bacterial films
• disruptive technology
• only effective, new anti-bacterial approach that
  inhibits biofilms and does not promote resistance
• market changing elements
• the only non-toxic molecules with proven efficacy
  against biofilms
• new approach to anti-bacterials that does not
  create resistance
• anticipated near-term proof points
• first patents to be issued
• first licensing agreement consumer application
• target markets
• US30 billion global market for medical devices
  and implants,
• US20 billion global market in industrial and
  consumer applications
• US30 billion global market for topical and
  systemic anti-infectives
• XL TechGroups equity interest 90.0
• www.quonova.com

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GENXL LLC

• created to deliver additional value for XL
  TechGroup shareholders over and above the core
  business model
• takes advantage of a guaranteed flow of
  opportunities from XL TechGroup and GEN3
• flexible approach allows the creation of point
  solutions and licensing opportunities, as well as
  new businesses
• ability to take in external financing, including
  VC and private equity
• multiple transactions anticipated per year
• first investment (EnGen) in a unique platform
  technology that has a range of potential
  supercapacitor battery applications across
  various sectors where there are clear unmet
  market needs
• XL TechGroups equity interest 42.7
• www.gnxl.com

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VALUATION MODEL INFLEXION POINT

• XL TechGroups future valuation will be based
  on the sum of
• Cash
• AgCert (18.8)
• TyraTech (47.9)
• DxTech (82.5)
• PetroAlgae (94.1)
• QuoNova (90.0)
• GenXL (42.7)
• NPV of future pipeline

we believe that XL TechGroup is now reaching a
clear inflexion point in the potential valuation
profile of the Group
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XL TECHGROUP PIPELINE OF POSSIBILITIES

• an economical catalytic process to split low-cost
  methane into high-value, high-purity graphitised
  carbon and pure hydrogen
• a designer micro-organism that efficiently
  produces isoprene, a direct replacement for
  gasoline and propane
• a group of antiviral compounds active against
  viral diseases such as HIV, bird flu, and SARS
  that are derived from natural sources (fungus,
  seaweed, animal mucus)
• a water-based, non-toxic green paint base that
  contains no organic solvents, and yet adheres
  strongly to plastics, metals, etc.
• a novel technology for non-invasively imaging,
  for the first time, of unstable vulnerable plaque
  in the coronary arteries
• a new approach to causing existing cancer
  therapeutics to stick highly preferentially to
  certain tumour types, thereby enhancing the
  specificity of the relevant drugs
• an offshoot of a novel cancer vaccine technology
  which is adapted as a peripheral blood diagnostic
  to screen for early cancer detection
• a moisture barrier technology which provides
  controlled separation of wet and dry food
  products, and
• a unique proprietary platform which enables rapid
  screening of molecules which target AMP kinase
  for treatment of metabolic diseases such as
  obesity and type 2 diabetes

strong relationships with discovery
technology partners produce an ever evolving,
exciting pipeline of possible opportunities
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CONCLUSION

• we build market-changing enterprises using
  world-changing technologies
• we have a highly experienced, proven team
• we partner successfully with some of the worlds
  leading global companies
• we have a significant network of technology
  partners where we leverage multi billion annual
  RD spends, and IP portfolios containing tens of
  thousands of patents
• we have developed a unique company creation and
  development methodology that has a successful
  track record over 14 years
• we are creating significant market value
• we have reached an inflexion point where that
  value is starting to crystallise now
• we anticipate a number of announcements in the
  coming months that will support this
• we are moving to a distribution model

XL TechGroup is in the business of significant
value creation
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creating value through solutions for unmet needs
INVESTOR PRESENTATIONOCTOBER 2007
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FINANCIALS CONSOLIDATED BALANCE SHEET
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FINANCIALS OPERATING STATEMENT
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FINANCIALS CASH FLOW
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BOARD

• Dr. John Scott, Chief Executive Officer a serial
  entrepreneur andinventor who has founded ten
  successful technology companies within the past
  20 years
• David Szostak, Chief Financial Officer over 20
  years experience as a financial executive in a
  number of private and public companies, which has
  included management of fundraising and initial
  public offerings activities
• Geoffrey Vernon, Non-Executive Chairman Dr
  Vernon has extensive experience in the
  healthcare industry, including Ciba-Geigy
  Pharmaceuticals and Schering Chemicals, and in
  fund management, with Rothschild and Advent
• Dr. Andrew Heath, Non-Executive Director CEO of
  Protherics since 1997, he brings a wealth of
  healthcare and pharmaceutical expertise with
  international experience in marketing and sales,
  RD and business development
• Bill Haskell, Non-Executive Director over 20
  years experience in creating and building
  technology companies. He has co-founded several
  companies, been a principal in two turnarounds
  and served on the boards of private and public
  companies

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SENIOR MANAGEMENT

• Harold Gubnitsky, Executive Vice President a
  seasoned executive with over 20 years experience
  who has worked with and within several
  corporations with a wide range of
  responsibilities spanning executive management
  and operations
• Steve Lufkin, CEO of DxTech senior management
  experience including technology and strategic
  business development, technology
  commercialisation, and strategic direction for
  new product introductions
• Mike Nadolny, CEO of PetroAlgae experienced in
  assessing new business opportunities from
  strategic, technical, and financial perspectives.
  Previous roles included helping large
  corporations identify promising new technologies
  for potential spin-out
• Dr. Heinrich Gugger, CEO of QuoNova over 25
  years experience in developing global high tech
  and life sciences companies in the public or
  multinational company domain. Dr. Gugger has
  served on numerous company and life science
  industry boards

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NEWS FLOW 200607 HIGHLIGHTS

• US35 million borrowing facility with Laurus
• TyraTech announces supply and distribution
  agreement for Mexico
• TyraTech signs option agreement with Scotts
  Miracle-Gro
• AgCert forms JV company with AES which will
  invest US325m in the business
• joint venture company GenXL launched
• TyraTech signs licensing / co-development
  agreement with Arysta LifeScience
• TyraTech signs licensing / co-development
  agreement with Syngenta
• placing of 4m old shares _at_ 280p to satisfy
  institutional demand
• formation of fourth company - PetroAlgae
• DxTech announces global technology partnerships
• TyraTech signs global licensing / co-development
  agreement with Kraft for functional
  foods/beverages
• formation of fifth company - QuoNova
• US20 million borrowing facility with Laurus
• TyraTech appoints CEO, CFO and investment bank
  advisors
• GenXL invests in first company - EnGen
• AgCert announces improved strategy and additional
  financing
• TyraTech floats on AiM
• appointment of Presidential Strategic Advisory
  Services LLC as strategic adviser

we anticipate strong news flow from across our
portfolio over the next twelve months
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CONTACT

• Chris MundenDirector of Investor Relations
• t 44 (0)20 7398 7720
• m 44 (0)7775 530690
• e cmunden_at_xltg.com
• w www.xltechgroup.com

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creating value through solutions for unmet needs
INVESTOR PRESENTATIONOCTOBER 2007