Fairfax I.S. PLC has completed the successful introduction to AIM of Ludgate Environmental Fund Limited. 25,705,000 shares in the Company have been placed at (the “Placing Price”) of 100 pence with 1 investor warrant for every 4 shares.

The Fund is a newly incorporated, Jersey domiciled, closed-ended investment company. It has been formed to enable experienced and sophisticated investors to participate in a diverse portfolio of investments in the Environmental/Cleantech Sector. The Investment Adviser, Ludgate Investments Limited, has significant experience and a successful track record of investing in and helping to build companies within this sector.

The Fund’s objective is to generate a significant level of capital growth in the medium to longer term. The Fund does not expect to generate a significant level of income.

The Investment Adviser will seek to achieve the Fund’s objective by using the expertise demonstrated by its already proven track record of investing in and helping to build successful businesses in this area against the background of the current rapid growth in investment demand and opportunities within the Environmental/Cleantech Sector.

The Investment Team intends to concentrate mainly on investments at the development capital (expansion) or pre-IPO stage. Earlier stage investments will also be considered where the Investment Adviser believes it is well placed to provide significant added-value to those companies. The Fund may invest in minority, majority or entire stakes in companies, depending on the circumstances of the opportunity. Investments in companies which subsequently obtain a listing on a recognised stock exchange can still be held by the Fund after listing if the Manager (advised by the Investment Adviser) believes the prospects for a particular company’s growth make its continued holding to be in the best interests of the Fund. Equally the Fund may invest in PIPES (private placements of quoted securities) and quoted securities on junior, less liquid exchanges where the Investment Adviser believes it can provide an added-value contribution to the growth of those target investment companies. The Fund may also participate in corporate divestitures and may from time to time also invest up to 10 per cent. of its assets in other investment funds in the Environmental/Cleantech Sector.

Whilst not wanting to restrict the Fund to any particular region geographically, the Investment Team expects to concentrate its sourcing of investments largely from the UK, Continental Europe, Israel and Australia.

The broad investment sectors which will be considered by the Investment Team include:
* energy efficiency and alternative energy sources;
* water treatment and management;
* waste management and recycling (resource recovery);
* industrial process advances; and
* emission reduction technologies.

The Investment Team anticipates that the Fund will, when fully invested, have between 10 and 15
principal investments. Typically, an initial investment will be in the £1 million to £3 million range.

Listing Exchange: AIM
Listing Date: 02/08/2007
Gross Funds Raised: £25,705,000
Nominated Adviser: PricewaterhouseCoopers LLP
Broker: Fairfax I.S. PLC