David Scaysbrook is acting as Executive Chairman of NEEL and is in the process of constituting a full Board of Directors for NEEL, prior to the share issue and listing.

Additionally the first landfill gas engines in the second stage of its expansion program in the UK are being delivered to sites and are in the process of being commissioned, with electricity sales expected to commence in early March.

Formerly known as Primergy, Novera is the third-largest landfill gas-to-power company in Britain with 39 megawatts of renewable electricity generation. The 18 MWs generated from the expansion will be distributed across the U.K. as the company creates four new sites and increases capacity at five existing sites.

Despite a number of development and commissioning delays impacting the second stage roll-out, and despite the continuing subdued production at the Arpley site, revised commercial arrangements are expected to maintain forecast revenues and earnings for NVE over 2004.

Discussions are continuing with WRG to mitigate the impact of the lower gas yields at the Arpley site previously announced to the market. To the end of December, the site performed generally in line with the diminished expectations. Recently, additional site works, including a new well drilling program, have assisted some gains in output.

However, little progress has been made in commercial negotiations with WRG on some disputes emerging between the two parties over aspects of the operation of the Arpley site. The Company remains confident of its rights and entitlements and will pursue them fully in all future engagements with WRG.