Hybrid Jatropha

SINGAPORE, Feb. 12, 2008
/PRNewswire-FirstCall/ -- CAT Ltd.,has acquired the planting and land use rights for
494,200 acres of land in Indonesia for the purpose of generating revenues from
a plantation for Jatropha plants. The agreement was signed on February 5, 2008
with Boulevard Holdings Group Ltd for the acquisition rights in growing
Jatropha, managing Jatropha plantations, and harvesting Jatropha seeds to be
crushed for its production of non-edible vegetable oil for bio-diesel and its
other bio-mass components. The strategic acquisition allows CAT to diversify
its growth and reduce risk in the Jatropha industry. Management believes that
the acquisition will be worth over $300 million within five years based on
projected global demand for Jatropha by-products. The Company noted that,
according to an August 24, 2007 Wall Street Journal article (which was also
cited on CNBC on September 14, 2007), Goldman Sachs projected that Jatropha
was one of the leading candidates for global biodiesel production.
Jatropha trees produce seeds containing up to 40% oil. When the seeds are
crushed and processed, the resulting oil can be used in a standard diesel
engine, while the residue can be processed into biomass to power electricity
plants. The by-products are often cited as a clean, green and prime source
for global biodiesel supply. The price of Jatropha-based biodiesel has
historically been highly profitable, ranging from US$650 to US$750 per ton,
based on current negotiated market futures.
CAT Founder Chairman Dr. Harry He said, "We expect CAT's Jatropha
production path to begin with immediate revenues from the sale of Crude
Jatropha Oil ("CJO") from existing harvests. We will concurrently apply our
innovative agro-technology processes to accelerate growth and yield for the
plantation; we expect that the entire 494,200 acres can be converted to our
fast-growth/high-yield technology in just two years. We believe that the new
acquisition rights on this one half million acres over the next five years
should increase the profit value of the Company."
The new acquisition was completed with 30% cash and 70% newly-issued
shares at a premium conversion of US$2.10 via convertible bonds. The
acquisition significantly expands CAT's current portfolio of approximately
50,000 acres of Jatropha plantations in Indonesia. CAT previously forecast a
fair profit value of US$45 million for the remaining fiscal year 2008 and will
continue to focus on Agro-Technological Research & Development for future
growth based on its existing profitable operations.
Dr. He continued, "This acquisition represents a major step forward in
CAT's strategy to build critical mass and economies-of-scale in production
operations. The rights to this extensive tract of land provide us with
security for our feedstock which -- when combined with our leading-edge
Jatropha cultivation, our Agro-Technology, and our trained work-force --
allows us to accelerate our CJO production in order to meet our revenue
targets. CAT's super-hybrid Jatropha plants in our current plantations are
able to achieve higher yields of CJO oil seed within a shorter growth period,
while positioning the biodiesel market to meet the world's fast-growing
demand."