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2014-07-08

OPCON: Opcon: Signs Letter of Intent with Snowman to establish Opcon Powerbox JV for China

Energy and environmental technology group Opcon AB (publ) has signed a
Letter of Intent with its strategic partner Fujian Snowman Co. Ltd.,
Fuzhou, Fujian, China on the formation of a Joint Venture for the
marketing, manufacturing and sales of Opcon's Waste Heat Recovery
technology, the Opcon Powerbox in China and parts of Southeast Asia.

In order to develop the Chinese market and an industrialized
manufacturing base for the Opcon Powerbox the parties' intention is
to form a joint venture that will be owned 51% by Snowman and 49% by
Opcon.

Opcon will grant a license for manufacturing, marketing and sales of
its proprietary Opcon Powerbox ORC and WST (West Steam Turbine)
technology to the JV who will aim to develop Snowman's existing
manufacturing base for future low-cost, quality manufacturing of
Opcon Powerbox ORC and WST in China. Furthermore, the JV will be
granted exclusive manufacturing and sales rights of the Opcon
Powerbox in China and a mix of exclusive and non-exclusive rights for
some other parts of Southeast Asia. The value of the Opcon Powerbox
manufacturing, marketing and sales rights to be granted to the JV
will be used by Opcon as contribution in kind for equity. What is not
used as contribution in kind should be paid as Royalty by the JV to
Opcon.

The Joint Venture will be responsible for setting up solutions for
producing electricity from the Opcon Powerbox out of surplus and
waste heat in China which is considered the world's largest market.
The parties aim to finalize the Joint Venture contract during the
summer of 2014.

In order to reduce time to market for the joint venture Snowman has
also placed an order for one Opcon Powerbox ORC and one Opcon
Powerbox WST manufactured in Sweden to be delivered for operation in
China.

"Waste Heat Recovery is a grand opportunity to a global problem and
one of the most promising venues for energy efficiency and reducing
emissions. We believe China will be the most interesting market for
Waste Heat Recovery technology for a foreseeable future. By combining
Opcon's state-of-the-art technology and know-how with Snowman's
outstanding quality control, low-cost manufacturing advantage and
local market presence we aim to create a strong player that can make
the Opcon Powerbox an economic and environmental success in China and
abroad says Rolf Hasselström, CEO of Opcon AB."

"We have been trying to find the right partner in order to
successfully enter the strong growing Chinese market with the Opcon
Powerbox technology for some time. In the last few years we have
built a very good relationship between Opcon and Snowman. A
relationship that we are now taking yet another step. Our vision for
this is not only to develop the very large local Chinese market but
also to create a cost-effective high performance manufacturing base
for Opcon's sales in other countries as well", Rolf Hasselström, CEO
of Opcon AB said.

"With the cooperation between SNOWMAN and OPCON in setting up a
Powerbox JV in China, we will be able to provide the Chinese and the
Southeast Asian market with the most advanced "ORC" and "WST"
products and system technology. By combining the mature screw
expander technology from OPCON with the prominent cost control
ability of SNOWMAN, we will promote the development of the waste heat
recovery industry in the area. The target of our JV is to become the
biggest and strongest enterprise for ORC and WST system application
in China and Southeast Asia.", said Rujie Lin, the President and
General Manager of Fujian Snowman Co., Ltd.

Fuijan Snowman Co. Ltd was founded in 2000 and is listed on the
Shenzen stock exchange. The Group has around 700 employees. Snowman
is one of China's major actors in industrial cooling. Marketing of
its goods and services is primarily done through the brand Snowkey
and RefComp.

For further information, please contact

Niklas Johansson, vice president, Investor Relations, Opcon AB, tel.
46 8-466 45 00, 46-70-592 54 53

Opcon AB, Box 15085, 104 65 Stockholm, Sweden
Tel. 46 8-466 45 00, fax 46 8-716 76 61
e-mail: info@Opcon.se

www.Opcon.se

The Opcon Group

Opcon is an energy and environmental technology Group that develops,
produces and markets systems and products for eco-friendly, efficient
and resource-effective use of energy.

Opcon has activities in Sweden, Germany and the UK. There are around
150 employees. The company's shares are listed on Nasdaq OMX
Stockholm. The Group comprises one business area:

Renewable Energy focuses on the following areas: compressor
technology, electricity generation based on waste heat,
bioenergy-powered heating and CHP plants, pellets plants, handling
systems for biomass, sludge, recycling industry and natural gas,
industrial cooling, flue gas condensation, treatment of flue gases
and air systems for fuel cells.

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http://news.cision.com/opcon/r/opcon--signs-letter-of-intent-with-snowma...
http://mb.cision.com/Main/494/9613901/264959.pdf

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