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Greenchip Investment (XEN)

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Monday 01 July, 2002

Greenchip Investment

Business update

Greenchip Investments  PLC
1 July 2002

The Board of Directors of Greenchip Investments plc (the Company/Greenchip/GRE),
the specialist plastics and programmable materials and technologies company, is
pleased to make the undernoted Announcements:

1.      Greenchip Investments plc forms U.S. Operating Unit to aggregate
        degradable plastics technology

The Company announces the formation of its new, wholly owned, US subsidiary -
Programmable Materials Inc. (PMI), a corporation formed in the State of Delaware
- to provide an operational base for its current and future holdings in the
United States and, possibly, elsewhere.

PMI's corporate offices are located in New York City while operations are based
in a prominent research and development and small batch specialist manufacturing
facility located near Buffalo, New York.  PMI is also developing close working
links with the University of Buffalo. The Board expects that PMI will become
Greenchip's principal business unit and will be the corporate vehicle used to
aggregate target companies holding significant Intellectual Property assets in
the environmental chemistry and materials sciences, with particular emphasis on
degradable plastics materials and additives.

As an example, PMI's management expects that degradable agricultural mulch film
could be typical of niche markets capable of effective penetration using the
company's array of patented degradable additives which can produce a film that
will save farmers $10-$17 per acre over current non-degradable products.
Greenchip is also exploring degradable food utensils, medical products, and a
number of other specialty applications which are considered to be likely
beneficiaries of PMI's cost-efficient technology.

GRE's near-term business development strategy is to aggregate significant
intellectual properties under PMI and build strong market franchises in those
market sectors which can benefit from the economic as well as environmental
advantages of specialty degradable, biodegradable plastics and other comparable
"programmable" materials which are formulated to meet specific operating
criteria in the general field of materials sciences.

2.      Greenchip Investments plc elects 3 new directors

The Company is pleased to announce that David Porter Bibb III has been appointed
a non-executive director of the Company and that Rudolf Young Mosny and Robert
Theodore Durst Jr. have both been appointed executive directors.

Porter Bibb, aged 65, is a founder and managing partner of Technology Partners
(Holdings) LLC, a private merchant bank which specialises in new media,
technology, telecoms and biotech.  Prior to this he spent 11 years as partner
and managing director of Ladenburg Thalmann & Co Inc, a 132 year old private
investment bank with widely recognised expertise in media, technology and
communications, and 4 years as managing director of Bankers Trust Company, where
he was a key member of the start-up group which launched Bankers Trust's
international investment banking operation.  In less than five years his group
there completed over 300 media, technology and telecom industry assignments.

Rudolf Mosny, aged 49, has experience in strategic planning and management of
multi-million dollar international business operations with expertise in
manufacturing and service environments.  He is Chief Executive Officer of
Programmable Materials Inc and is joint managing partner and co-founder of
Meridian Global Advisors LLC, a consulting and advisory practice.  Prior to that
he was chief executive officer of Portable Data Technologies Inc, where he was
responsible for all phases of management, marketing and sales and new product
development for a start-up provider of software and systems.  He was also chief
operating officer and executive vice president for international operations of
NeoMedia Technologies Inc, where he was responsible for day-to-day operations of
the public company, including growth and profitability objectives.  During his
period at NeoMedia he was responsible for raising $5 million of new capital and
decreasing operating costs by more than 40% in less than six months.

Robert Durst, aged 49, has over twenty years of experience in transforming
product concepts and technologies into revenue producing assets in both business
and research environments.  He is president and chief technology officer of
Programmable Materials Inc where he has been responsible for establishing and
managing all R&D and technology resources.  He is also the joint managing
partner and co-founder of Meridian Global Advisors, LLC, a consulting firm that
specialises in helping companies develop their business strategy and operations,
structuring, developing and managing intellectual property assets and
identifying and facilitating additional sources of investment.

Information required to be disclosed under Schedule 2, rule (f) (ii) - (viii) of
the AIM Rules

Porter Bibb

Current directorships / partnerships             Past directorships / partnerships

Programmable Materials Inc                       American Film Technologies Inc
Technology Partners (Holdings) LLC               Global Direct Financial Securities Inc

Rudolf Mosny

Current directorships / partnerships             Past directorships / partnerships
Programmable Materials Inc                       NeoMedia Technologies Inc
Meridian Global Advisors LLC                     Portable Data Technologies Inc

Robert Durst

Current directorships / partnerships             Past directorships / partnerships

Programmable Materials Inc                       NeoMedia Technologies Inc
Meridian Global Advisors LLC (Managing Member)
Portable Data Technologies LLC (Managing Member)

Save as noted above there are no details to be disclosed pursuant to Schedule 2,
rule (f) (iii) - (viii) of the AIM Rules in respect of Messrs Durst, Bibb and

The three new appointees will help direct and oversee the Company's new unit,
PMI, whose Board will now comprise, Porter Bibb, Chairman, Rudy Mosny, CEO, Mr.
Durst President, together with Colin Hill and Robert Downie who are existing GRE
Board members.  PMI's new management team will lead an aggressive acquisition
programme and assume control over the assets and intellectual property of
Programmable Life, Inc., a degradable plastics operating company which was
acquired by Greenchip earlier this year.

3.      Greenchip Investments plc sets date for next AGM

The Company today announces the publication of its latest Annual Report and
Accounts (for the 12 months to 31 December 2001) and has set the date and
location of its next Annual General Meeting which is to be held at the offices
of Stringer Saul, 17 Hanover Square, London, W1S 1HU on Wednesday 31 July at 10:
30 hours.

4.      Greenchip Investments plc engages US-based Strategic Advisers

The Company announces that it has completed formal agreement with Technology
Partners LLC (TPH), a New York-based strategic advisory firm specializing in
maximising the development potential of early stage technology based companies
in the United States and elsewhere. (TPH's web site can be found at: http://

TPH 's Managing Partner is Mr. Porter Bibb whose brief resume is included
elsewhere in this Announcement. Mr. Bibb is to join the Board of Greenchip in a
non-executive capacity and also Programmable Materials Inc where he shall serve
as Chairman.

The principal terms of the engagement are as follows:

(a)       Non-exclusive for a period through 17 February 2003 subject to mutual 
          notice of 30 days.

(b)       Paid per monthly retainer and performance-based compensation against 
          stated goals. Remuneration shall include cash and equity-based 

(c)       Duties to include, inter alia:

i.        the establishment of corporate and capital structures to maximise and
          accelerate the Company's objectives:

ii.       Identify, screen and contact strategic and other investors:

iii.      Assist in the identification and recruitment of appropriately
          qualified management to "roll out" the Company's initial business 

iv.       Advise and direct the Company on any proposed Transactions, be they
          related to the raising of capital or merger and acquisition 

5.      Greenchip Investments plc engages US-based Management Consultancy

Pursuant to the introduction by, and assistance from, Technology Partners LLC
(see 4 ante) the Company today announces that its has recently completed formal
agreement with Meridian Global Advisers LLC (Meridian) a US-based consulting
group to provide management and business development services to the Company in
both the US and Europe in fulfillment of the Company's established business
strategy which was formulated in the period following the closing of the RTO
with Programmable Life Inc on 8 January 2002 and as indicated in the appropriate
listing documents completed at that time.

The principal terms of the engagement are as follows:

(a)         Non-exclusive for a period through 31 March 2003 subject to
mutual notice of 30 days.

(b)         Paid per monthly retainer and performance-based compensation
against stated goals. Remuneration shall include cash and equity-based
components which latter component will specifically include nil paid shares
options for up to 20 million shares to be granted on the successful completion
of certain initially agreed objectives. Further equity-based compensation shall
be awarded against other specified tasks to be completed by Meridian.  Duties to
include, inter alia:

i.        the provision of the services of both Rudolf Mosny and Robert 
          Durst as executive directors of Programmable Materials Inc and as 
          directors of the Company.

ii.       Identify and evaluate alternative business development strategies to 
          maximize shareholder value.

iii.      Develop and implement business reengineering processes as deemed 

iv.       Identify and recruit such new or additional operating management as 
          shall be necessary pursuant to the agreed Business Strategy.

v.        Develop and prepare corporate business plan based on agreed business 

vi.       Consult on capital structures, private placements and other capital 
          strategies in combination and subject to the advice and guidance 
          otherwise provided and led by Technology Partners LLC.

6.      Greenchip Investments plc grants new management share options

Pursuant to the terms of the consulting agreement between the Company and
Meridian Global Advisers LLC, the directors are pleased to announce that they
have today granted nil paid options over 20 million ordinary shares of the
Company at an Exercise Price of 4 pence per share, such options to vest as to:

•         7 million immediately upon grant

•         13 million upon completion to the satisfaction of the Board of those
          initially stated tasks expected to be completed in the course of this 
          calendar year.

All options granted under this award shall be exercisable at the sole discretion
of the Option Holder from the date of vesting until 31 December 2007.

7.      Greenchip Investments plc amends terms of RTO transactions completed
        earlier this calendar year

Pursuant to the establishment of the Company's new US-based operating
subsidiary, the appointment of the new Board thereof, together with the new
Board appointments in the Company and in further consideration of the broadened
business development strategy as indicated herein under Items 1 and 2 (ante),
the now enlarged Board has had extensive discussions with the Company's NOMAD
and the original "concert party" members as named in the Listing Document
associated with the RTO of the Company by Programmable Life Inc. (PLI)  dated 8
January 2002.

Further to these discussions, all of the involved parties have agreed that it is
in the best interests of all of the shareholders in the Company that these
arrangements for the potential issue of the so-called "additional consideration
shares" (amounting to up to a further 60 million ordinary shares in the Company)
be set aside.

Accordingly, the Company has formally agreed with all relevant parties that no
such additional consideration shares will be issued.


Malcolm Burne, Chairman:                      020 7409 3500
Colin Hill, Deputy Chairman:                  07831 557 631
Graeme Thom, Grant Thornton (NOMAD):          020 7383 5100

                      This information is provided by RNS
            The company news service from the London Stock Exchange