GHF Greenhouse

RNS Number:6663T
Greenhouse Fund Limited (The)
26 March 2007



For immediate release                                              26 March 2007


                            The Greenhouse Fund Ltd

                        ("Greenhouse" or "the Company")

           Independent Engineering Report on Molectra plant received
                                      and
                 Additional investment in Molectra Technologies


Independent Engineers report on the Molectra process

The Directors of Greenhouse (AIM:GHF) are pleased to announce that they have
received an independent engineers report on the Molectra process that confirms
management's initial estimates for both capital and operating costs for a
full-scale plant and strongly endorses the economic and commercial viability of
the Molectra process.

Following the start of production at the Molectra pilot plant in Brisbane
Australia, announced on 15 February 2007, Greenhouse commissioned a report from
Wiley & Co. ("Wiley"), to analyse all aspects of the plants operation. Wiley is
an internationally renowned engineering firm which was involved in the
construction of the plant from inception. The aim of the report was to examine
the construction, commissioning and operation of the pilot plant, and crucially,
the operating and capital costs associated with the ten-fold scale up from pilot
to full-scale plant. The Wiley report strongly endorses the economic and
commercial viability of the Molectra process.

This full-scale plant is designed to process c.2.6 million tyres per year or
26,000 tonnes, which is ten-times the capacity of the current pilot plant. It is
anticipated that a full scale plant will cost c.#6 million to build and take
c.12 months to construct. Based on the Wiley report, the Directors expect the
operating cost associated with processing this volume would be c.#70 per tonne.
Various target sites outside Sydney in New South Wales, Australia, are currently
being considered for the full-scale plant, and further announcements will be
made in due course.

Additional investment in Molectra

Greenhouse also announces it has invested an additional c.#1.2million in
Molectra Technologies Pty Ltd ("Molectra Technologies") in cash via a
convertible note. The convertible note is unsecured, cannot be redeemed for a
cash alternative, and must be exercised before 31 December 2008.

Upon conversion, Greenhouse would receive a 39% shareholding in Molectra
Technologies. Greenhouse can alternatively elect to redeem the note for 39% of
the assets of Molectra Technologies, which redemption would translate into a 26%
stake in Molectra Australia Pty Ltd ("Molectra Australia"). Greenhouse already
has the right to acquire 32% of Molectra Australia, so the note gives Greenhouse
the right to acquire in total a controlling 58% stake in Molectra Australia. The
investment also gives Greenhouse the right to appoint two directors to the board
of Molectra Technologies with various controlling rights.

The funds will be used to repay existing debts and will provide additional
capital for the pilot plant through 2007 to develop further the process and
ensure the plant becomes an international showcase site for Molectra's
technology.

Preliminary results

It is anticipated that Greenhouse's preliminary results for the year-end 31
December 2006 will be issued in early April 2007.

Greenhouse Chairman Nigel Wray commented, "The Wiley report is a significant
validation of the Molectra technology and its economics. The additional
investment gives Greenhouse the right to acquire a majority stake in Molectra
Australia, which I believe will be of very considerable strategic and economic
benefit in the future for Greenhouse's shareholders. Molectra now represents a
valuable investment for the Company and I look forward to announcing further
developments as Molectra's technology is taken to its next stage of operation."


For further information please contact:


Paul Gazzard,
Greenhouse Advisor Ltd.
Tel: 0207 355 7660
Email: pg@greenhousefund.co.uk

Charles Ryland/Ben Willey
Buchanan Communications
0207 466 5000
Email: charlesr@buchanan.uk.com
Email: benw@buchanan.uk.com



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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