Extension of Manufacturing Facilities

Press release from Zenergy Power plc

Zenergy Power plc (AIM:ZEN.L), the specialist manufacturer and developer of commercial applications for high-temperature superconductive (‘HTS’) materials, announces today that it has commenced a major extension of its manufacturing facility based in Rheinbach, Germany. The extension will significantly improve the capacity of the facility enabling the Group to accommodate the anticipated increased volume production of its ground-breaking HTS induction heater over the coming years. The extension also assigns sufficient expansion capability for the manufacturing of HTS magnets for HTS Fault Current Limiters (‘FCL’), as well as coils and 2G wires.

The 50% expansion of the Group’s manufacturing facility to 3,300m2 has been undertaken at this time to significantly increase the Group’s production capabilities in anticipation of increased commercial order flow following the recent successful commercial launch of its HTS induction heater; the first of the Group’s energy efficient products based on its proprietary HTS technology.

The potential market for induction heaters is estimated at €2bn per annum and Zenergy has already received two commercial orders for its HTS induction heater from two different global metals producers. The first of these ground-breaking machines was installed and became fully operational at the industrial manufacturing premises of the Group’s first customer Weseralu GmbH., in Minden, Germany in July 2008. Consequently, the Group’s groundbreaking technology is now available for demonstration to potential customers and initial feedback indicates the HTS induction heater has generated great interest for new installations as well as a replacement for conventional units that are reaching the end of their lifecycles. The Board is confident that this will spur further commercial sales of the machine.

In line with Zenergy’s efforts to be an environmentally responsible and energy efficient business, the manufacturing facility and its extension – due to be completed in March 2009 – are compliant with all EU energy efficiency standards for industrial plants. In addition, the power supplied to the facility is 100 per cent renewably generated, thus CO2 free and certified by TÜV Süd, under CMS Standard EE 01. The facility, which is currently leased by Zenergy, is also subject to a call option permitting Zenergy the right to purchase on request. It is the intention of the Board to secure the long-term ownership of the facilities at a time when their purchase represents the most appropriate use of the Group’s cash resources.

For further information:

Dr. Jens Müller (CEO) · Zenergy Power Plc · T +49 (2226) 9060 200

Vikki Krause · Hansard Group · T +44 (207) 245 1100

Original article.