Investors

The aggregate value of the consideration was arrived at on a willing-buyer and willing-seller basis. This consideration would be funded by bank borrowings.

Concurrently, ESPC has entered into a preferred supplier arrangement with CSE to subcontract the engineering, procurement, construction and delivery of air injection and energy storage projects to CSE.

The two transactions will not have a material impact on the net tangible assets per share and the earnings per share of CSE for the financial year ending 31 December 2005.

None of the Directors or controlling shareholders of CSE has any interest, direct or indirect, in the abovementioned transaction.

Energy Storage and Power Corporation market and sell air injection technology and energy storage projects worldwide. The air injection technology improves the efficiency of gas-turbine-based electric power plants through the injection of externally compressed, humidified, and heated air into a gas turbine up-stream of the combustors which improves the engine power, efficiency (heat rate) and emissions. Compressed air energy storage offers a relatively economic technology to store the wind energy and other low cost renewable and/or coal based off-peak energy for later use as needed.

CSE Global Limited is a global system integrator listed on the main board of the Singapore Exchange (SGX: CSE Global), operating in the Americas, Europe, the Middle East, Africa, Asia, Australia and New Zealand and has more than 750 employees spread over 29 offices in 18 countries. CSE provides state-of-the art, cost-effective total integrated industrial automation, telecommunication and electrical solutions to clients globally in the energy (Oil & Gas/Power), chemical/petrochemical, utilities, mining & minerals, water & sewerage and transportation industries. Visit www.cse-global.com for more information.