News

Pre-Close Trading Update

Dublin, Ireland – 12 December 2005

AgCert International plc (the “Company” or “AgCert”) (AGC) announces a trading update prior to its 31 December year end. This trading update covers its operational performance in the modification of animal waste management systems and the subsequent build up of greenhouse gas emission reduction Offset (“Offset”) inventory.

The Board of AgCert is pleased to announce that the Company has made substantial progress in both its operations and regulatory approvals. Highlights include:

AgCert has completed 221 sites as at 9 December compared to 74 at 10 September, representing a 300% increase. 128 sites were completed in the last eight weeks.
The United Nations appointed Clean Development Mechanism (CDM) Executive Board approved the registration of two of its projects in Brazil (1) and Mexico (1). The formal acceptance (registration) of a validated project as a CDM project activity under the Kyoto Protocol is the prerequisite for the subsequent verification, certification and issuance of Certified Emission Reductions (CERs).
The Company has received 24 Letters of Approval (LOAs) for modification of animal waste management systems, primarily for swine but also for dairy.

Below is a summary of the Company's operational performance with reference to its key performance measures.

Performance measure	10 September 2005	9 December 2005
Arrangements for sites (Brazil, Mexico, Chile, Argentina)	>1,000	>1,300
Sites in progress	352	244
Build time	16 to 20 weeks	12 to 15 weeks
Completions	74	221
Capital cost per CER	€1.20	€1.22
CER annual production rate for completed sites	0.4 million	1.2 million
Prompt start qualifying farms	471, of which, 372 farms meet company criteria	471, of which, 372 farms meet company criteria
Total credit reserve (from farms started)	23 million tonnes CO₂e [1]	25 million tonnes CO₂e
PDDs submitted	18	30
PDDs registered	0	2
Letters of approval	7 (Mexico)	15 (Mexico) 9 (Brazil) [2]
EUA prices	€ 23.83	€21.60 [3]

[1] Credit reserve, from farms started, is lower than previously reported due to a new operational definition of Farm Start that does not consider site pre-assessment as the commencement of construction activities.

[2] Eight Brazilian LOAs are conditional

[3] Source: PointCarbon

The Board anticipates that the Company’s first CERs will be certified, ready for delivery, by the end of Q1 2006. The Company expects to be able to produce an amount of Offsets sufficient to meet contracted deliveries, subject to completing the remaining final steps of regulatory approval.

AgCert has strengthened its existing operational and financial reporting structures during the last three months to facilitate a more cohesive management structure and information system. The Directors believe this has contributed to a better operating performance.

Bill Haskell, Interim CEO, AgCert International said

“I am very pleased with the progress we have made over the last three months. We have managed to address the execution issues successfully and the results are coming through in our key performance indicators. We have also made significant regulatory progress and the prospects for AgCert look increasingly positive.”

Contact:

AgCert International
Bill Haskell, CEO, AgCert International	+353 (0) 1 245 7400
Paul D'Alton, Finance Director	+353 (0) 1 245 7400

Maitland
Liz Morley / Brian Hudspith	+ 44 (0) 20 7379 5151

This announcement contains certain statements regarding the group's financial position and results, business strategy, plans and objectives that are or may be deemed to be forward-looking statements, including without limitation, statements containing the words "believes”,” anticipates" "intends" "plans", "estimates", "aims”,” expects" or, in each case, their negative or other variations or comparable terminology. Such statements involve risk and uncertainty because they relate to future events and circumstances, and there are accordingly a number of factors, which might cause actual results and performance to differ materially from those expressed or implied by such statements.

About AgCert

AgCert International plc is listed on the London Stock Exchange. The Group was founded in 2002 to produce and sell reductions in greenhouse gas emissions (referred to as "Offsets") from agricultural sources on an industrial scale. These Offsets are intended to satisfy the requirements of the Kyoto Protocol and be capable of being traded on the newly established European cap and trade system, the European Union Emissions Trading Scheme ("EU-ETS").

AgCert has identified agriculture as one of the largest commercial opportunities for Offset production and expects to be a leading supplier of Offsets from this sector. Agriculture is responsible for around 20 per cent of the world's annual greenhouse gas emissions. Under the Kyoto Protocol, any reductions in greenhouse gas emissions derived from this sector qualify as CERs provided they are derived from projects that have been validated by a DOE and Registered by the UN Executive Board and are properly verified and certified according to the stringent requirements laid down by the UN. AgCert's proprietary systems and processes include one of only two UN approved large scale methodologies for the production of Offsets in the agricultural sector. This has given the Group early strategic advantages in capitalising upon the rapidly evolving carbon based emission trading markets.

The Group's strategy is to expand rapidly its Offset production and resultant sales capacity by commencing the modification of AWMS on farms where it has already entered into arrangements with farmers and by rolling out its turnkey AWMS modification methods both geographically and across additional livestock species beyond its current focus on swine through the entry into contracts with additional farms.