Vaperma closes C$ 21.5 million Financing Round, Adding Low Carbon Accelerator and Volvo Technology Transfer as New Investors

    QUEBEC CITY, QC, Nov. 7 /CNW Telbec/ - Vaperma Inc., a leading provider
of advanced gas separation solutions aimed at reducing energy costs and carbon
footprint, today announced it has received Can$ 21.5 million in a second
financing round. The funding is led by Low Carbon Accelerator Limited (LCA), a
Guernsey-based investment company created to invest in a portfolio of
fast-growing low carbon businesses, with participation by Volvo Technology
Transfer Corporation (Volvo) and all institutional Vaperma investors - Emerald
Technology Ventures, BDC Capital and Fonds d'investissement en développement
durable (FIDD).
    The company will use proceeds from this financing to commercialize its
Siftek(TM) membrane-based ethanol/alcohol dewatering system, to expand all
corporate operations and to accelerate the growth of its membrane business.
    "Addition of LCA and Volvo to our existing investors completes our
exceptional experienced investment group and further validate our commitment
to become a reliable long term technology provider in the biofuels, biogas and
natural gas markets," said Claude Letourneau, President & CEO of Vaperma.
"Combined with the excellent market perspective in fuel ethanol and natural
gas, our company is now ready to aggressively expand its sales and marketing
activities worldwide."
    Vaperma has developed a breakthrough solution to remove water from
ethanol blends by entirely replacing rectification column and/or dehydration
unit such as molecular sieve and extractive distillation. Conventional
ethanol/alcohol distilleries are known to consume huge amounts of steam.
Vaperma's Siftek(TM) system is being tested successfully for over a year in an
operating corn-based ethanol plant in Canada and offers North American grain
ethanol producers an immediate return on investment with substantial natural
gas or fuel savings. The application of Siftek(TM) technology will be very
beneficial to the Brazilian sugarcane alcohol producers as it provides a cost
effective method to increase bio-electricity revenues from the significant
reduction of steam consumption.
    Dr. Stephen Mahon, Chief Investment Officer at Low Carbon Initiative
said: "The success of this financing is a testament to the quality of the
management team and the exceptional market opportunities that exists in the
biofuels and natural gas markets. This investment represents an important
addition to our clean energy portfolio." As per the terms of investment with
LCA, Dr. Mahon will be joining the board of Vaperma.

    About Vaperma

    Vaperma is a Canadian company specializing in the development,
manufacturing and commercialization of a new hollow fiber polymeric Siftek(TM)
membrane allowing high selective separation of water from various gas mixtures
and organic vapors. Vaperma membranes are heat and solvent resistant. Membrane
technology offers an alternative to conventional alcohol distilleries
processes for the dewatering and dehydration of fuel ethanol. Vaperma
Siftek(TM) technology provides enhanced value to its customers' products
through higher performance and economic returns. Vaperma's growth strategy is
to focus on continuously improving its membrane separation technologies to
meet the broadest needs of its customers.
    www.vaperma.com

    About Low Carbon Accelerator

    Low Carbon Accelerator Limited is a closed ended investment company
created to invest in a portfolio of fast-growing low carbon businesses. The
Company listed on the AIM Market of the London Stock Exchange on 11 October
2006, raising (pnds stlg)44.5 million.
    The Company's investment strategy is to target trading businesses with
patentable technologies and products with a clear commercial application and
the opportunity to gain a large market share of a new or expanding market. The
Company focuses on businesses with experienced management teams who have
developed commercially viable products providing easily adoptable solutions
which deliver immediate reductions in carbon dioxide emissions.
    Low Carbon Investors Limited, the Company's investment manager,
anticipates that the Company should be fully invested (or committed to be
invested) within 12 to 15 months of the Company's admission to AIM.
    www.lowcarbonaccelerator.com

    About Volvo Technology Transfer

    Volvo Technology Transfer Corporation (VTT) shall create value for the
Volvo AB shareholder by developing and supporting new businesses with
relevance for the Volvo group. VTT has three main tasks:

    - To bring the Volvo group closer to new technologies or new services by
      investing in companies and projects of technical and commercial
      interest.
    - To support the development of businesses based on Volvo technology with
      a business potential outside the Volvo group. Thereby can businesses
      develop in new environments and the development cost can be shared with
      new external customers.
    - To support the development of entrepreneurship and innovation within
      the Volvo group.

    VTT is a Limited Partner of Emerald Technology Ventures and welcomes its
first parallel investment with Emerald.
    www.volvo.com

    About BDC Capital Inc.

    BDC Capital Inc. is a major venture capital investor in Canada, active at
every stage of a company's development cycle, from seed through expansion. Its
focus is on technology-based businesses with high growth potential that are
positioned to become dominant players in their markets. Established in 1975,
BDC Capital has invested in over 400 firms to date. It currently manages some
$550 millions in venture capital investments in the life sciences,
telecommunications, information technology, and advanced technology sectors,
as well as investments in funds.
    www.bdc.ca

    About Emerald Technology Ventures

    Emerald Technology Ventures is a global leader in cleantech venture
capital. Founded in 2000 under the name SAM Private Equity, Emerald is a
pioneer in this rapidly emerging sector and is focused on innovative
technologies in energy, materials and water. From offices in Zurich,
Switzerland and Montreal, Canada, Emerald manages three venture capital funds
and two venture capital portfolio mandates totaling over EUR 285 million   
(US$380 million). Emerald is currently investing out of its latest fund and is
looking for energetic and passionate entrepreneurs with the vision to build
world-class clean technology companies.
    www.emerald-ventures.com

    About FIDD

    The Fonds d'investissement en développement durable (FIDD), L.P. is a
private investment fund and a leader in the financing of businesses
contributing to sustainable development. Founded in 2003, FIDD focuses on
solutions that reduce greenhouse gas emissions by investing in clean
technologies and renewable energy projects. FIDD is a pioneer recognized
internationally for its use of the life cycle approach not only in its
investment process, but also in its ability to create value for companies in
its portfolio. The Solidarity Fund QFL, Fondaction and the Fonds québécois
pour le développement durable (FAQDD) are among FIDD's investors
    www.fidd.qc.ca/

For further information: Mathieu Claise, Optimum relations publiques,
(418) 521-3770, Fax: (418) 647-4031, mathieu.claise@cossette.com; Visit
Vaperma website: www.vaperma.com