v2 Report - Additional Information Supplement

GEN Genesis Research & Development Corporation Ltd

IPOs and Investment Opportunities

Press releases

Genesis Research and Development Corporation Limited GEN 6 Aug, 2007, 12:01  Genesis Research Announces Interim Results

Genesis Research and Development Corporation Ltd (NZSX/ASX: GEN) today reported research progress and financial results better than budget, including a cash balance at 30 June 2007 of $6.7 million (31 December 2006: $9.0 million). The net cash burn of $2.3 million was held below budget but includes expansion of the oncology programme. The resulting net deficit for the period was $3.1 million (30 June 2006 surplus: $5.9 million, due to the one-time revenue of $8.7 million from the sale of forestry technology). Genesis Chief Executive, Stephen Hall, said, "Excellent progress has been achieved with all the research programmes during the period. This is expected to lead to milestone achievements over the coming months." "The oncology programmes have validated a number of targets with significant commercial potential. Development work for delivery to target tissue types is proceeding well. The Zyrogen programme is currently generating sufficient volume of antibodies to the Zyrogen target to allow testing in disease models. Positive discussions continue with a number of potential licensees and collaborators for both programmes." "The transition to International Financial reporting Standards has resulted in an increase in reported income of $37,000 and an increase in expenses of $66,000 for the period. Full details of the adjustments to opening balances are included in the financial statements." "BioJoule Ltd, a partly owned subsidiary, has had very strong interest in the natural lignin it has been producing from shrubby willow. Samples of this lignin have been converted into polyurethane foam, showing the potential to produce 'green' plastic. During the period BioJoule raised $0.5 million new capital from external investors. Further investment is being sought to finance the development of a pilot scale digester. A number of groups are showing significant interest in this opportunity." Genesis Research and Development Corporation Limited Results for announcement to the market Reporting Period Six months to 30 June 2007; Previous Reporting Period Six months to 30 June 2006 Amount ($NZ 000's); Percentage change Revenue from ordinary activities: 686; Down 36% Revenue from one-off activities: -; Down 100% Loss from ordinary activities after tax attributable to security holder.: 3,038; Not Applicable Net loss attributable to security holders.: 3,038; Not Applicable Interim/Final Dividend Amount per security; Imputed amount per security It is not proposed to pay dividends; Not Applicable Record Date: Not Applicable Dividend Payment Date: Not Applicable Comments: The reduction in revenue from ordinary activities in 2007 was due the expiry of the two year government grant for RNAi technology and a reduced level of government grant for the plant technology. As At 30 June 2007; As At 30 June 2006 Net Tangible assets per share: $ 0.27; $ 0.47 Disclosure Statements - The interim condensed consolidated financial statements have been prepared in accordance with New Zealand equivalents to International Financial Reporting Standard (NZIAS 34) for interim financial statements. These are the Group's first interim financial statements prepared in accordance with NZ IAS34, Interim Financial Reporting and comparatives for the comparative interim period and the immediately proceeding financial year (as applicable) have been restated accordingly. NZ IFRS 1 First-time Adoption of New Zealand equivalents to International Financial Reporting Standards has been applied. The condensed consolidated interim financial statements have been reviewed by Ernst & Young. - The accounting policies applied in the unaudited interim financial statements for the six months ended 30 June 2006 and the audited financial statements for the year ended 31 December 2006 were prepared under previous NZ GAAP. - The company did not pay a dividend or distribution and does not have a dividend or distribution reinvestment plan in operation. - There were no entities over which control was gained or lost during the period. - The company does not have any interests in associate entities. - Interest in Joint Venture Entities Name; % held at 30 June 2007; % held at 30 June 2006 Contribution to net Loss 30 June 2007 ($ 000); Contribution to net Loss 30 June 2006 ($ 000) BioJoule Limited; 65.2; - ;160; - In 2006, AgriGenesis and Lake Taupo Development Company Limited ("LTDC") jointly established BioJoule Limited. BioJoule is focused on the growth of shrubby Salix as feedstock for use in commercial bio-refining to produce products derived from cellulose, lignin and hemicellulose. Assets including know-how, technology and patents were transferred to BioJoule by the parties. In consideration for the transfer of assets, BioJoule was incorporated with 3,500,000 founder shares issued to AgriGenesis, and 1,500,000 issued to LTDC. AgriGenesis committed to provide $250,000 initial working capital to BioJoule. In 2007, the total advance of $250,000 was converted to equity. Also in 2007, two new shareholders each subscribed for $250,000 new equity in BioJoule, which diluted the interest held by AgriGenesis from 70% at 31 December 2006 to 65.2% at 30 June 2007. (30 June 2006, nil). - There were no major changes or trends in the company's business subsequent to the end of the half year reporting period. - The company did not revalue any assets during the half year. S G Hall Chief Executive 6 August 2007

 

Genesis Research and Development Corporation Limited GEN 12 Jul, 2007, 11:21 Green Plastic Produced from BioJoule Material

Auckland, New Zealand, 12th July, 2007 - Genesis Research and Development Corporation Ltd (NZSX/ASX: GEN) today reported that expanded polyurethane foam has been produced from natural lignin extracted from shrubby willow grown by its subsidiary BioJoule. The natural lignin was tested by a potential international customer and excellent results were shown for thermal conductivity and density. The customer has indicated interest in purchasing commercial quantities at a price that is consistent with the economic modelling developed by BioJoule. The initial samples of lignin have been prepared by small pilot scale processing. As BioJoule achieves further funding it intends to build a larger pilot scale processing plant that would allow process design and operating parameters to be optimised and would then enable construction of a commercial refinery. BioJoule Managing Director, Dr Jim Watson, said, "The production of urethane foam shows the potential to manufacture 'green' plastics from shrubby willow that is sustainably produced in coppicable plantations. This has the potential to reduce the need for petrochemicals in polyurethane production, thus improving the carbon footprint. BioJoule is also expanding its programme to review the use of lignin in a range of composite plastics. The opportunity to grow shrubby willow on low value land to produce ethanol as a transport fuel and other high value by-products such as lignin and xylose has the potential to solve a number of environmental and economic issues for New Zealand. A number of international groups have shown interest in collaborating with BioJoule." "The use of Salix, which has a very high energy capture and conversion balance, and the production of multiple high-value products, is expected to create a much more economic biofuel business than using food grade corn to produce ethanol alone." About BioJoule BioJoule is a subsidiary of Genesis Research that has been established to develop and commercialise technology for growing and refining shrubby willow to produce industrial materials such as ethanol, unsulphonated lignin and xylose. For more information, please visit www.genesis.co.nz Media contacts: Jim Watson, Managing Director - BioJoule Ltd, +64 21 554 222 Stephen Hall, Chief Executive - Genesis Research and Development Corporation Limited, +64 9 373 5600

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