Mr. Brett Hodson reports

ANAERGIA SELLS ITS ITALIAN BOO PROJECTS TO ARJUN INFRASTRUCTURE PARTNERS

Anaergia Inc. has entered into interrelated agreements with entities managed by Arjun Infrastructure Partners to immediately terminate its obligations relating to approximately $145-million in loan obligations owing to Arjun, including with respect to a lender option to require purchase by the company of associated loans for the six build-own-operate assets in Italy under conditions that include the failure to secure senior debt financing for particular projects by a certain date, in exchange for the sale of approximately $55-million in intercompany loans (as previously written off by the company) and the equity interests in a subsidiary of Anaergia that owns the projects to Arjun. As a result of the transaction, Anaergia will receive de minimis cash consideration.

The company has determined, as part of its previously announced strategic review and consultation with professional advisers, that certain projects have immediate requirements of additional capital to reach operations beyond amounts available to the company under current lending facilities. As previously disclosed, the company did not have the ability to purchase the associated loans in the event the lender option was duly exercised by Arjun.

As a result of the transaction, Arjun has acquired full ownership and control of the projects, which will provide it with the opportunity to finance the additional capital required for each project to reach commercial operations. Accordingly, the company has no further requirements to provide additional capital in respect of the Projects.

The company and Arjun have also entered into a co-operation agreement to manage postclosing activities, including, but not limited to, the company's continued participation in providing remaining EPC (engineering, procurement and construction) work on the projects, certain transition services, and the opportunity for the company to receive additional consideration through performance incentives and an earnout on terms to be negotiated in good faith.

"As part of the company's strategic review, it was determined that the best path forward was a consensual deal and arrangement with Arjun to help ensure the projects reach commercial operations in a timely manner. The transaction reduces our capital requirements and immediately helps improve liquidity for the company," said Brett Hodson, chief executive officer of Anaergia. "We look forward to assisting Arjun and the project teams to complete construction and further advance other business development opportunities in Italy."

About Anaergia Inc.

Anaergia was created to eliminate a major source of greenhouse gases by cost-effectively turning organic waste into renewable natural gas (RNG), fertilizer and water, using proprietary technologies. With a proven record from delivering world-leading projects on four continents, Anaergia is uniquely positioned to provide end-to-end solutions for extracting organics from waste, implementing high-efficiency anaerobic digestion, upgrading biogas, producing fertilizer and cleaning water. The company's customers are in the municipal solid waste, municipal waste water, agriculture and food processing industries. In each of these markets, Anaergia has built many successful plants, including some of the largest in the world. Anaergia owns and operates some of the plants it builds, and it also operates plants that are owned by its customers.

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