Europlasma - 2010 Year end Results

By Europlasma, PRNE
Thursday, April 28, 2011

30% Turnover Increase

PARIS, April 29, 2011 - The Europlasma Board of Directors met on 27 April 2011 to
authorise the issue of the 2010 financial statements

Europlasma, the French clean technology and renewable energy
group, reports 2010 results:

- TEUR 40,836 consolidated turnover

- TEUR 458 consolidated operating income

- TEUR 781 consolidated net income (Group share)

2010 consolidated results

Performances across the Group's business segments in 2010 are
as follows:

Air and gas cleaning solutions activities (Europe
Environnement) accounted for 61% of Group turnover in 2010, i.e. a
contribution to 2010 total group turnover of TEUR 24,885, compared with TEUR
20,827 in 2009. There was a marked upturn in business in 2010, notably in
industrial markets.

The Group was awarded a EUR 10 million plus contract for the
construction of a gas treatment line for the 3Sun solar panel manufacturing
plant built in Sicily. The positive impact of this major contract will mainly
be reflected in the 2011 accounts.

The Group remains highly active on international markets and
has been awarded contracts in Russia and North America.

Total contribution to net income (Group share) stands at TEUR
-764, compared with TEUR -1,406 in 2009. The loss shortage results mainly
from the turnover increase (+19%) and from the capital gains realized on the
sale of Europe Environnement former premises. Profit margins still fall short
of pre-crisis averages, as contracts executed in 2010 were concluded in 2009
in the economic crisis context.

Hazardous waste destruction activities (Inertam) accounted for
23% of Group turnover, with TEUR 8,982 recorded in 2010 compared with TEUR
9,669 in 2009. Despite the slight fall in turnover (-7%), this business
segment remains at profit with a TEUR 169 net income before goodwill
amortization. This performance results from margin optimization measures
initiated in 2009 and continued in 2010.

5,472 tons of asbestos waste were treated in 2010 compared
with 5,210 tons in 2009, i.e. a 5% increase. The average sale price per ton
was down on 2009 due to adverse input waste mix, treatment price being linked
to the type of waste treated (fibrocement, PVC slabs, fireproofing, etc.).

Major investments were made in 2009 and 2010 to optimise the
feed preparation area, in compliance with legal and environmental
requirements, at a total cost of TEUR 1,016.

Renewable energy production activities (CHO Power) generated a
turnover of TEUR 6,527, accounting for 16% of consolidated turnover. This
first clean energy related income is linked to the construction of the first
CHO Power plant in Morcenx. On 1 December 2010, CHO Power began engineering,
procurement and construction work on the CHO Morcenx plant in the French
department of les Landes, as project owner. The CHO Morcenx Plant, aimed to
produce 12MW of electricity from biomass and waste materials, is to be ready
for operations on 31 May 2012.

2010 Europlasma group operating income stands at TEUR 458,
compared with a loss of TEUR 3,990 in 2009, notably thanks to the increased
activity level. Net income (Group share) amounts to TEUR 781, compared with a
loss of TEUR 3,641 per financial year 2009. The Group benefitted from
significant tax credits for research and development activities for the
second consecutive financial year. The share of non-controlling interest in
the consolidated net income is a loss of TEUR 381.

    CONSOLIDATED INCOME STATEMENT (in TEUR)         31/12/2010    31/12/2009

    NET REVENUES                                        40,836        31,404
    Other operating income                               3,284         2,658
    Purchases and other external charges               (26,893)      (23,171)
    Staff costs                                        (11,925)      (11,430)
    Other operating expenses                              (780)         (168)
    Taxes                                                 (863)         (858)
    Net change in depreciation and amortization         (3,201)       (2,425)
    OPERATING INCOME                                       458       (3,990)
    Financial income and expenses                         (290)         (357)
    Extraordinary income and expenses                        -          (74)
    Corporate income tax                                 1,088           969
    NET INCOME FROM CONSOLIDATED COMPANIES               1,256       (3,451)
    Share of (loss)/profit of associates                   (59)          (18)
    Goodwill amortization                                 (796)         (874)
    CONSOLIDATED NET INCOME                                401       (4,343)
    Minority interests                                     381           702
    NET INCOME (GROUP SHARE)                               781       (3,641)

             2010 consolidated accounts audited and discussed by the Board of
                                                        Directors on 27/04/11

2010 consolidated cash flows

The Group's net cash and cash equivalents stand at TEUR 13,204
, compared with TEUR 13,917 as at 31/12/2009. The success of the summer 2010
share capital issue enabled the Group to fund its investments in the CHO
Morcenx electricity production plant.

    CONSOLIDATED CASH FLOWS (in TEUR)                 31/12/2010 31/12/2009

    Net cash flow generated by (allocated to)
     operating activities                                   (369)    (1,656)
    Net cash flow from investing activities               (5,250)   (12,885)
    Net cash flow from financing activities                4,869      8,115
    Effects of changes in exchange rates                      37        (7)
    CASH FLOW FLUCTUATION                                   (713)    (6,433)
    Opening net cash & cash equivalent                    13,917     20,350
    Closing net cash & cash equivalent                    13,204     13,917

             2010 consolidated accounts audited and discussed by the Board of
                                                        Directors on 27/04/11

Note: the difference between opening and closing net cash &
cash equivalent per consolidated cash flow statement and balance sheet figure
is made of cash equivalent held for medium- or long term guarantees.

2010 consolidated balance sheet

Changes in the consolidated balance sheet are essentially
relating to the growth of energy production activities, a strategic business
line for the medium- to long term Group development.

    CONSOLIDATED BALANCE SHEET (in TEUR)                31/12/2010 31/12/2009

    Intangible assets                                        2,325      2,376
    Goodwill                                                11,673     12,403
    Property, plant and equipment                           16,078     19,888
    Long term financial investments                          8,053        490
    Investments in associates                                  202          -
    NON CURRENT ASSETS                                      38,332     35,157
    Inventories and work-in-progress                         1,830      1,505
    Trade receivables and related accounts                  13,014     10,852
    Other receivables and prepayments                        5,298      3,715
    Cash and cash equivalents                               14,466     13,923
    TOTAL ASSETS                                            72,940     65,152

    Minority interests                                       3,865      4,243
    Quasi equity                                               784          -
    Provisions                                               1,029        983
    Borrowings and financial liabilities                    12,016     15,135
    Trade payables and related accounts                      6,680      6,162
    Other liabilities and deferred income                    9,736      7,224
    TOTAL EQUITY AND LIABILITIES                            72,940     65,152

              2010 consolidated accounts audited and approved by the Board of
                                                        Directors on 27/04/11

2011 Outlook

Air and gas cleaning solutions activities have seen a dynamic
start to 2011. The Group intends to take advantage of new opportunities in
the photovoltaic sector by promoting itself as a top tier international
player. The Group has identified partners, opinion-leaders and potential
clients so as to respond as part of a consortium to international calls for

Hazardous waste destruction activities should benefit from the
tightening-up of the regulatory framework with the extension of obligations
to new types of materials containing asbestos (non-friable materials), only
recently found to be harmful, and turnover should rise as a consequence.
Moreover, the two consecutive years of profit achieved by the Inertam plant
confirm the profitability of the hazardous waste treatment facility and the
suitability of the process.

Renewable energy production activity is poised to grow
rapidly. The CHO Morcenx electricity from biomass and waste production plant
currently under construction in the French department of les Landes is the
first plant of a series of sites already identified in Europe and North

Financial calendar

4 May 2011: SFAF (French association of financial analysts) meeting

21 June 2011: General Meeting of Shareholders (Bordeaux)

About Europlasma

Europlasma is a French Group operating in the clean
technologies and renewable energy production industries. Founded in 1992 to
apply its proprietary plasma torch technology to hazardous waste destruction,
it is now built on the following three business units:

- Inertam is the global specialist in the destruction and
recycling of asbestos and hazardous waste.

- Europe Environnement is the European leader in industrial
ventilation and gas cleaning systems.

- CHO Power is a producer of electricity from waste and
biomass gasification. [Alternext - NYSE Euronext
Paris - Mnemo : ALEUP - Isin : FR0000044810]

    Press and investor contacts

    Didier PINEAU, Chief Executive Officer
    Estelle MOTHAY, Chief Financial Officer
    Tel: +33-5-56-74-73-72


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