Xebec Awarded Contract for Biogas Upgrading Plant in Korea

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The Xebec plant will purify biogas produced from food waste.

MONTREAL (QC) [WorldofBioenergy.com]

Xebec Adsorption Inc. (TSX: XBC)(“Xebec”), a provider of biogas upgrading, natural gas and hydrogen purification solutions for the clean energy market, today reported it has been awarded a contract from Halla Energy and Environment (“Halla”) for a biogas upgrading plant to be used in a biogas project currently being developed by the Sudokwon Landfill Corporation in Seoul, Korea.

The Xebec plant will purify biogas produced from food waste, producing high quality renewable compressed natural gas (CNG) to be used as vehicle fuel. Renewable CNG produced from the project will be used to fuel the City of Seoul’s fleet of low-emission CNG buses from an existing CNG station at the Sudokwon landfill site. Halla will provide site civil engineering, construction and project management services for the Sudokwon project.

“This sale is a strategic milestone in our plan to expand our biogas upgrading business in Asia,” said Andrew Hall, Xebec Vice President for Asia/Pacific. “The biogas market in South Korea is poised for rapid growth, with the Korean government providing significant support for the construction of anaerobic digesters to process both food waste and agricultural waste such as manure. The Sudokwon project is the first project in Korea to produce renewable CNG fuel from food waste and will serve as a model for the development of similar waste-to-CNG projects in Korea, and across Asia.”

“Xebec’s biogas plant will incorporate the company’s proprietary rapid-cycle pressure swing adsorption (rPSA) biogas purification technology. Our compact, skid-mounted biogas upgrading plants offer market leading features, including low energy consumption, zero environmental emissions and a compact design which minimizes installation costs and time,” Hall explained. “This combination of features presented a compelling value proposition to Halla and the Sudokown Landfill Corporation for this project.”

Commissioning and start-up of the upgrading plant is expected to take place in the latter half of 2010. Terms of the agreement were not disclosed.

About Halla Energy & Environment
Halla Energy & Environment for a half century has been concentrating on the environmental area through its many industrial plants including waste treatment, air pollution control and water treatment facilities. It is also greatly helping to control pollution in Korea as the largest specialized environmental company in the country. Based on 30 years of experience in various environmental industrial fields, in step with global renewable energy facilities market, Halla Energy & Environment is developing new renewable energy generation facilities focusing on R&D in the areas of wind power, solar power and hydropower that can be substituted for fossil fuels in order to reduce carbon dioxide that is causing global warming. Halla Energy & Environment is the first company in the world to construct small hydropower generation plants using cooling water discharged from a power plant and ocean tides. Halla Energy & Environment has the capability to carry out turn-key projects for all environmental pollution control facilities, renewable energy generation facilities and civil works from feasibility studies to design, construction and operation. Please visit the Halla Energy & Environment web site at www.hallasanup.com

About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of clean energy solutions to corporations and governments looking to reduce their carbon footprints. With more than 1300 customers worldwide, Xebec designs, engineers and manufactures innovative products that transform raw gases into marketable sources of clean energy. Xebec’s strategy is focused on establishing leadership positions in markets where demand for biogas upgrading, natural gas dehydration and hydrogen purification is growing. Headquartered in Montreal (QC), Xebec is a global company with two state-of-the-art manufacturing facilities in Montreal and Shanghai, a R&D facility in Vancouver (BC) as well as a sales and distribution network in North America, Asia and Europe. Xebec) trades on the TSX under the symbol XBC. For additional information on the company and its products and services, please visit the Xebec web site at www.xebecinc.com.

Caution Concerning Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking” statements within the meaning of applicable securities laws. This forward looking information includes, but is not limited to, the expectations and/or claims of management of Xebec with respect to information regarding the business, operations and financial condition of Xebec. Forward-looking information contained in this press release involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xebec or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect forward-looking information contained in this press release. When used in this press release, such statements use such words as “anticipate”, “believe”, “plan”, “estimate”, “expect”, “intend”, “may”, “will” and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.

For more information, please contact:

Kurt Sorschak
President and CEO

Jean Vézina
Vice President Finance and CFO

Andrew G. Hall
VP, Asia Pacific Operations
+86 13918241800

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