DYESIK strikes deal to acquire control of GREATCELL SOLAR SA

DYESOL STRIKES DEAL TO ACQUIRE CONTROL OF GREATCELL SOLAR SA

Media Release (2 pages) ? 2nd October 2006

Acquisition of most of the equity in Swiss-based Greatcell Solar SA will reinforce
Dyesol?s IP portfolio and continue to build the strategic position Dyesol holds in
Europe and with EPFL.

The Board of Dyesol Ltd has approved in principle the option to acquire a majority
shareholding in the Swiss-based Greatcell Solar SA. Dyesol Ltd had, prior to
listing on the ASX, entered into an option deed to acquire the shareholding of
Gavin Tulloch and Tulloch Management Pty Ltd, representing approximately 51%
of the issued capital of the Swiss-based company Greatcell Solar SA (Greatcell).

This acquisition, which will be carried out by Dyesol?s wholly owned subsidiary,
Sustainable Technologies International Pty Ltd (STI), was conditional on due
diligence to be undertaken by Dyesol. In undertaking due diligence, the Board of
Dyesol concluded that it would be in the best interests of the Company and
shareholders to also acquire the second largest shareholding, enabling Dyesol
to move to approximately 99% control of Greatcell. The remaining 1% of shares would
be retained by three other shareholders to satisfy corporate shareholding
requirements in Switzerland.

The Company has reached an in-principle agreement with Greatcell?s second largest
shareholder for STI to acquire his holding of approximately 48% of the issued
capital of Greatcell, for a total consideration of 500,000 fully paid ordinary
shares in Dyesol Ltd, to be issued in two tranches, with each share issue subject
to agreed escrow periods. This transaction, when concluded, will result in less
than 1% dilution of existing shareholders. Both transactions are subject to all
necessary consents being obtained, and all regulatory requirements within
Australia and Switzerland being satisfied, prior to conclusion of the
transaction and issue of shares.

On conclusion of these transactions, Dyesol will have a presence in its own
right in Europe. The Greatcell operation is located in Lausanne, close to Ecole
Polytechnique Fédérale de Lausanne (EPFL), and Greatcell has enjoyed a rewarding
and collaborative relationship with EPFL over a number of years. It is Dyesol?s
intention to continue and expand this relationship. Greatcell has complementary
IP to the Dyesol IP portfolio and has expertise in the manufacture of specialised dyes currently used by Dyesol. Over the years, Greatcell has been involved in a
number of Collaborative European Community (EC) R&D programs associated with Dye
Solar Technology and materials development that have led to independent and
potentially valuable IP. This transaction is another step in Dyesol?s move to
become the leading player in Dye Solar Technology.

Further information: Mrs Sylvia Tulloch (Managing Director Dyesol) DyesolNews@dyesol.com
Posted by Kuppuswamy Kalyanasundaram on Thursday 19 October 2006 at 15:16
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