Xebec Announces New Contracts in the Asian Natural Gas Infrastructure Market

MONTREAL, Jan. 10, 2012 /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 made significant commercial progress in the natural gas infrastructure market in Central and South East Asia during the fourth quarter of 2011.

Xebec has recently received first orders from three new customers valued at CDN$540,000 for its NGX line of natural gas dryers for use in compressed natural gas ("CNG") refueling stations in Uzbekistan, Kazakhstan, Afghanistan and Thailand. Orders for these units were placed by market leading suppliers of equipment used in natural gas fueling stations and by PTT (SET:PTT), a large publicly traded Thai petrochemical company and a leading developer of natural gas refueling infrastructure in Thailand.  All of these orders will be manufactured in Xebec's Shanghai facility.

"Countries in Central Asia, including Uzbekistan and Kazakhstan have significant natural gas reserves, and governments in these countries have begun to construct CNG infrastructure to promote the use of CNG as a transportation fuel," said Andrew Hall, Vice President of Asia Pacific Operations for Xebec.

"Xebec's gas dryers are a key component on CNG stations as gas supplies in Central Asia can have a high moisture content which needs to be dried before it can be used safely and reliably as CNG vehicle fuel. Xebec's range of NGX natural gas dryers provide a proven and reliable solution for dehydrating pipeline gas to meet the quality specifications required for CNG," said Hall.

"We are also extremely pleased to supply dryers to PTT for use in CNG stations in the north of Thailand. Thailand is an extremely important market for CNG infrastructure, with over 400 CNG stations serving a fleet of over 260,000 natural gas vehicles. We hope to have further success in this market as Thailand has plans to construct additional CNG stations and make CNG available in rural areas not currently served by the existing natural gas grid," said Hall.

About the Xebec NGX Range
Xebec provides a comprehensive range of rugged, skid mounted, single and dual tower regenerable natural gas dryers under its NGX brand. These dryers are closed loop, with automatic, or operator initiated, heat reactivated regeneration and variable cycles for reliable dryer regeneration control and shutdown. The NGX range comes standard with an "AutoDew" feature.

Xebec is a World leader with its NGX line in drying natural gas for vehicle fueling stations and offers:

• 25 years experience in designing and manufacturing gas dryers
• Complete dehydration and filtration solutions
• Major installations throughout the world: North America, China, Russia, Australia, South America, Indonesia and the Middle East
• Dedicated CNG team at every level of the process
• Worldwide support, service and replacement parts
• Built to ASME code and National Board certified
• Can be built to specific requirements such as the Chinese, Malaysian, Russian and other certification requirements

Stock Options

On December 22, 2011, the Company granted 2,040,000 share purchase options at $0.10 per share to two senior management members in return for a conversion of base salary into stock based compensation.

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 Technology Centre 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.

For further information:

Kurt Sorschak
President and CEO
450-979-8701
[email protected] 

Eric Favreau
Vice President, Finance and CFO
450-979-8706
[email protected]

Andrew G. Hall
VP, Asia Pacific Operations
[phone]
[email protected]