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D1 Oils Plc (NEOS)

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Tuesday 02 May, 2006

D1 Oils Plc

Refinery Franchise

D1 Oils Plc
02 May 2006

         D1 Oils Grants Refinery Franchise in Australia and New Zealand

 Exclusive franchise expected to generate sales of 16 refineries and operating
                   licence revenues from biodiesel production

2 May, 2006

D1 Oils plc (D1), the UK-based global producer of biodiesel, has signed an
exclusive franchise agreement which involves the supply of 16 D1 20 refineries
over three years in Australia and New Zealand. Under the franchise D1 is also
entitled to receive ongoing revenue from operating licence fees for each tonne
of biodiesel produced by the refineries.

The franchise agreement requires certain key conditions to be fulfilled within
eight weeks and also sets out key performance targets to be achieved by the
franchisee to retain exclusivity of the D1 franchise in Australia and New

Under the terms of the exclusive franchise agreement, the franchisee is required
to place orders for the first four D1 20 refineries by the end of 2006 and then
four further refineries each year from 2007 through to 2009. D1 will receive a
capital contribution for the sale of each refinery unit of £1.45m, resulting in
expected total revenues of £23.2m from the sale of the 16 refineries. In
addition the franchisee is required to pay D1 an operating licence fee of
approximately £200,000 per annum per refinery over the life of the franchise,
which has been agreed for an initial ten years.

The franchise has been awarded to D1 Australia Limited (D1 Australia), a company
established and predominantly owned by local sponsors, Mike Ganon and Andrew
McGuckin. D1 owns a minority stake in D1 Australia of 10%. D1 Australia aims to
raise further funds by October 2006 through an Initial Public Offering (IPO) of
shares on the Australian Stock Exchange. Both Mike Ganon and Andrew McGuckin
have strong track records in capital raising in the Australian markets and
extensive knowledge of the Australian and New Zealand biodiesel industry. The
funds raised through the IPO will facilitate the purchase and operation of the
first four refineries. In addition the franchise agreement also grants D1
Australia the right to operate under the D1 brand.

D1 will commission and performance test the refineries and train the franchisee
operational staff at the D1 Refinery Centre in Middlesbrough, UK, and in

Elliott Mannis, Chief Executive Officer of D1 Oils commented, 'The prospects for
growth in the Australian and New Zealand biodiesel markets are very promising.
This agreement gives D1 an immediate presence in Australia and also demonstrates
the capability of our refining technology to potential partners in other
markets. The franchising of refinery operations is a cost effective means to
generate sales and licence fees in markets where we do not yet have a presence,
and we believe that deals of this type will contribute to taking D1 into
profitability in 2007.'

Andrew McGuckin, Chief Executive Officer of D1 Australia commented, 'We were
attracted to D1 by the modular and flexible nature of the D1 20 refinery, which
we believe will match the need for refining capacity in the Australian and New
Zealand markets, whose strong growth is being underpinned by high local fuel
prices, the adoption of an automotive biodiesel standard and government
incentives. We are proud to be associated with D1, and with their support we are
looking to build an extremely successful business with a long term future. The
franchise model offers the right balance of incentives for us to access D1's
proven refinery technology and operational support, whilst driving strong
business growth. It also has the capacity to deliver sustainable advantages in
the feedstock and distribution areas to D1 Australia, D1 and all other future


D1 Oils
Graham Prince, Communications Director
Mobile: +44 (0) 7973 323840

Brunswick Group

Helen Barnes, Associate Partner
Tel: +44 (0) 20 7404 5959

D1 Australia

Andrew McGuckin, Director and Chief Executive Officer
Tel: +61 (0) 407 827 611

Mike Ganon, Director
Tel: +61 (0) 408 928 157

Notes to Editors

Exchange rate

Operating licence fees referred to above will be payable in Australian Dollars
and have been converted at a rate of 2.5 Aus$ to £1.

D1 Oils

D1 Oils plc is a UK-based global producer of biodiesel. We are building a global
supply chain and network that is sustainable and delivers value from
'earth-to-engine'. Our operations cover agronomy, refining and trading. We are
pioneering the science, planting and production of inedible vegetable oils; we
design, build, own, operate and market biodiesel refineries; and we source,
transport and trade seeds and seedlings, seedcake, crude vegetable oils and
biodiesel. Our vision is to be the world's leading biodiesel business.

D1 Australia

D1 Australia is an Australian-based group which was co-founded by Mike Ganon and
Andrew McGuckin to establish a successful and sustainable biodiesel refining
business in Australia and New Zealand based on proven modular technology. D1
Australia's franchise agreement with D1 Oils provides exclusive rights to
utilise the D1 20 technology and systems owned by D1 Oils and trade under the D1
Oils name. D1 Australia's vision is to become the premier biodiesel business in
Australia and New Zealand.

Mike Ganon

Mike Ganon, age 41, is the Managing Director of Next Level Corporate Pty Ltd, an
Australia-based corporate advisory and deal arranging firm which he founded in
2001. Mike has been actively involved in the structured debt, equities and
investment banking sectors for 17 years. Prior to founding Next Level Corporate,
he was Manager, Corporate Finance Group (Western Australia) within Macquarie
Bank's Investment Banking Group. He has been involved in over A$3.5 billion in
equity, structured debt (including chemical processing plants) and M&A
assignments in Australia and abroad. Over the past four years, Mike has provided
deal arranging and fundraising services to alternative energy companies in
Australia and the UK involved in wave energy, wind power, coal seam gas and
biodiesel processing technology. He holds an MBA from the University of Western

Andrew McGuckin

Andrew McGuckin, age 45, has over 20 years experience in the finance sector in
Australia and the United States. He was a Director of Porter Western Limited, a
major regional stockbroker based in Perth, Western Australia, which was acquired
by Macquarie Bank in 1999. Andrew then joined Macquarie's Equity Capital Markets
division where he was involved in a number of capital raisings. Since 2001, he
has been involved in the biodiesel industry, most recently being the Chief
Executive Officer of a Western Australia-based research and development business
focused on biodiesel production processes. His qualifications include a Bachelor
of Commerce degree from the University of Western Australia.

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