Xebec Announces Memorandum of Understanding For the Development of Biogas Upgrading Projects in China

SHANGHAI, CN, Jan. 14 /CNW Telbec/ - Xebec Adsorption Inc. (TSX: XBC) ("Xebec"), a provider of biogas upgrading, natural gas and hydrogen purification solutions for the clean energy market, announced today that it has signed a Memorandum of Understanding (MOU) with Anyang Yinshang Ltd. ("Yinshang") for the development of biogas upgrading projects in China. Under the terms of the MOU, Yinshang will use its best efforts to purchase up to 5 biogas upgrading systems from Xebec within the next 24 months, and commits to issue a binding purchase order for the first upgrading plant by March 31, 2011.

"Yinshang manages and operates organic waste treatment facilities, and is affiliated with a leading private developer and operator of compressed natural gas ("CNG") fueling stations in Henan Province. Yinshang has recently begun to develop clean energy projects by converting biogas to renewable CNG. These alternate sources of CNG provide an independent, renewable and distributed source of CNG in areas that are not served by China's limited natural gas pipeline infrastructure" said Andrew Hall, Xebec Vice President of Asia Pacific.

In addition to biogas upgrading from organic waste sources, Yinshang and Xebec have committed under this MOU to explore opportunities in the Coal Mine Methane (CMM) and landfill gas (LFG) upgrading segment. For both of these market segments Xebec offers advanced gas purification systems and sees significant market potential in China.

Delivery of the first plant under this MOU is expected to take place at the end of 2011.  Further terms of the agreement were not disclosed.

As previously announced, Xebec is continuing to pursue its cost reduction measures including temporary lay-offs and ongoing efforts to improve its capital position, as well as reviewing other strategic alternatives.

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. 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, an R&D facility in Vancouver (BC) as well as a sales and distribution network in North America and Asia. 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. 

SOURCE XEBEC ADSORPTION INC.

For further information:

Kurt Sorschak
President and CEO
450-979-8701
ksorschak@xebecinc.com   
Ginette Gagné
Vice President, Finance and CFO
450-979-8721
ggange@xebexinc.com

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