Xebec Adsorption Inc.

Xebec Adsorption Inc.

January 20, 2010 16:00 ET

Xebec Awarded Contract for Biogas Upgrading Plant in U.S.

MONTREAL, QUEBEC--(Marketwire - Jan. 20, 2010) - Xebec Adsorption Inc. (TSX:XBC) ("Xebec"), a provider of biogas upgrading, natural gas and hydrogen purification solutions for the clean energy market, today reported it has been awarded a project for a biogas upgrading plant in California.

The project includes the supply and installation of a biogas upgrading plant to upgrade approximately 400 normal cubic meters per hour (NCMH) of raw biogas to pipeline grade biomethane. Commissioning and start-up of this plant is expected to take place in the latter half of 2010. Terms of the agreement were not disclosed.

Kurt Sorschak, President and CEO of Xebec said, "We are very pleased to be able to win this order for our rapid cycle biogas purification technology. Not only does it confirm that Xebec's biogas upgrading equipment is among the most advanced in the clean energy market but it also shows that Xebec has a very attractive biogas upgrading solution for smaller flow rates. Xebec will be responsible for the engineering, procurement, construction and management (EPCM) of this contract. This project represents an important milestone in our effort to grow our business in the wastewater treatment segment."

"Wastewater treatment plant operators are looking for opportunities to utilize their biogas as a renewable energy source. Currently, the main application for biogas is in boilers for reheating or electricity generation. However, over the last 12 to 18 months, interest has been clearly growing in upgrading methane from anaerobic digesters to high-value fuel in order to supplement existing supplies of natural gas," said Mr. Sorschak.

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 R&D facility in Vancouver (BC) as well as a sales and distribution network in North America, Asia and Europe. Xebec (www.xebecinc.com) trades on the TSX under the symbol XBC.

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.

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