Zug, Switzerland July 3rd. 2006 – 12:00 CET Dirk P. Kohler, CEO of CarbonRe AG announced today a clear signal to the carbon markets: “We have promised tailor-made insurance solutions to the carbon markets – we continue to deliver and we stay independent”. Former Swiss Re and successful entrepreneur Richard H. Vögeli has been appointed chairman of CarbonRe AG, Zug in Switzerland. “ I’m joining forces with Dirk and an experienced management team to provide the carbon markets the advanced risk management tool’s. We merged GSDP Global Sustainable Development Project, France as a wholly owned subsidiary into CarbonRe to profit from a seven year track record in risk management and project- and product development. We will also join the United Nations Environment Programme Finance Initiative and actively contribute our knowledge to emerging markets and developing countries”.

GSDP was created in 1998 as part of Gerling Group of insurance companies and taken over through management - buy-out by Kohler in 2003. CarbonRe is one of the first insurance brokers and underwriters in the world to be launched with the sole objective to identify, assess and transfer risks in Greenhouse Gas Markets. “We have established CarbonRe AG in Zug, Switzerland due to the strategic location and human resources available in Zug” Kohler said and “…we will be a rapidly growing provider of speciality lines of insurance, reinsurance and structured finance risk solutions, focusing on insurance solutions in greenhouse gas markets.” CarbonRe defines specialty insurance and reinsurance as those lines of business that are often unusual or difficult to place and do not fit the underwriting criteria of standard commercial product providers.

Management has positioned the business to react to niche insurance underwriting opportunities in greenhouse gas markets that are in very high demand yet are currently underserved by the financial services industry. The Carbon Delivery Guarantee Insurance of CarbonRe will protect the buyers of Certified Emission Reduction’s and promote the project development by securing the pre-payment’s in new project’s. The Carbon All Risk Insurance will protect buyers and sellers against the whole range of project risk’s following the life cycle of Certified Emission Reduction’s. In April, after a six month trial period, Julian H. Richardson and Dirk P. Kohler, founders of Parhelion Capital and CarbonRe , respectively, reached an amicable agreement to pursue independent strategies in the carbon market.