Financing secured

SCHAFFHAUSEN (December 01, 2004) --- Stirling Systems Ltd., Schaffhausen, a leading development company in the area of the decentralized power generation, has signed a financing and investment agreement with the private equity arm of the InCentive Group, InCentive Private Equity Holding Ltd., Zug. The raised capital will be used to strengthen the development of the Stirling Energy Module (SEM). The Stirling Energy Module (SEM), merges the functionalities of a complete heating burner, the hot water preparation as well as the electric power production for one and multifamily houses at competitive prices.

The device is based on a manifold patented Stirling unit in whose heart completely contact less electricity is produced. The modern device offers extraordinary advantages, such as: lowest consumption, high efficiency and virtually silent operating mode, maintenance freedom and simplest integration into existing house systems.

After successful long-term tests in the years 2003 and 2004, extensive field tests will be started in the 1st semester 2005 in close co-operation with leading Swiss and European utility companies. Thereafter market launch is planned.