CALL.L Regulatory News (CALL)

12 Mar 2008 07:00

Embargoed Release: 07:00hrs Wednesday 12 March 2008

This announcement replaces the Group's `Commercial Order' announcement released at 07:00hrs on 11 March 2008. In the Group's announcement it was explained that the second commercial sale of the Group's HTS induction heater had been achieved nine months after the sale of its first HTS induction heater and eight months since the completion of the development and testing of the machine.

The sale of the Group's second machine has in fact come just six months since the initial sale and ten months since the completion of the development and testing of the machine. The date that the initial commercial sale was announced has also been corrected to 24 September 2007. The rest of the announcement remains unchanged and appears below.

Zenergy Power plc (`Zenergy' or the `Group') Commercial Order for Full Scale HTS Induction Heater for Copper Processing

Zenergy Power plc (AIM:ZEN.L), the specialist manufacturer and developer of commercial applications for high-temperature superconductive (`HTS') materials, is pleased to announce that it has received a second commercial order for a full scale HTS induction heater. This second order has been received just six months after the sale of the world's first HTS induction heater by the Group, and just ten months after the completion of the development of the patented machine which greatly reduces the level of electrical energy consumed during industrial heating processes used in the global metals industry. As announced on 24 September 2007, the initial sale represented the first sale anywhere in the world of an industrial scale commercial device employing HTS materials.

This second unit, based upon Zenergy's proprietary HTS technology, has been adapted and upgraded from the Group's initial industrial unit (sold to Weser Alu GmbH for the industrial heating of aluminium metal billets) to be used for the large-scale, volume intensive industrial heating of a range of copper and copper alloy metal billets. It is envisaged that this new machine will be required to operate under very demanding ongoing industrial conditions. The design work carried out to complete this adaptation and upgrade was conducted under a commercially commissioned project, fully funded by a multibillion euro global metals producer (the `Client'). The rapid completion of the design work is considered by the Board to be a significant endorsement of the engineering expertise available to the Group and its partners, proving Zenergy's capability to produce industrial scale devices that are suitable for use in a range of global markets with varying specific operational demands and conditions.

As announced on 26 September 2007, the Group was approached and commissioned by the Client to adapt the initial HTS induction heater to meet its particularly high volume heating requirements in its demanding global operational activities within the global copper industry. The decision by the Client to commercially commission the design work, followed a period of evaluation that confirmed to it the potential commercial and environmental benefits that the HTS induction heater presented to its ongoing global production operations. The Client is a major supplier of copper and copper alloy materials to the automotive industry, the building and construction industry, the electrical and electronic industry and the refrigeration and air conditioning industry. The Client will install the HTS induction heater at a newly commissioned industrial extrusion plant and foresees significant economic, environmental and productivity benefits from the use of Zenergy's highly energy efficient technology.

The Board considers the continuing rapid commercial adoption of the Group's newly developed HTS induction heater as a significant and resounding endorsement of the commercial, economic and environmental benefits brought about by the electrical efficiencies and technological advantages of the Group's core HTS technology; in just ten months since the completion of the development of the world's first HTS induction heater, the Group has received two commercial orders from two market leading global industrial metals suppliers, serving two separate multibillion euro markets.

The Client expects that the HTS induction heater will deliver greatly reduced heating times and considerably better temperature distributions, yielding significantly increased productivity levels in its operational facilities. Aside from these performance improvements, the Group has also been notified by the Client, that the HTS induction heater is expected to create a far simpler and lower maintenance operating regime than required by its existing conventional machines. As previously stated, initial feedback from the metals industry is that these performance characteristics make the Group's patented HTS induction heater significantly advantageous when compared to traditional induction heaters based on conventional components.

About Induction Heaters

Induction heaters are used globally and ubiquitously by producers and manufacturers in the metals industry to heat large quantities of metal bulk prior to carrying out processes of manipulation and shaping that require the metal material to be softened. The softened metal is used for products including installation pipes, heat exchangers, window frames, computer components and profiles for the automotive, aerospace and machine building industries.

As recognition of the environmental benefits achievable through the use of the Group's induction heater, the initial HTS induction heater was developed and built by Bƒ¼ltmann GmbH and Zenergy with the aid of the German Environmental Fund.

By adopting HTS components in place of traditional copper ones, the Group's induction heater operates with heating efficiency levels of 90% as compared to conventional induction heaters that operate at efficiency levels of between 35% and 45%. This effective halving of electricity requirement is of particular significance when it is considered that, dependent on the country, between 1% and 5% of the total annual electricity consumed in the industry of industrialised countries is directly attributable to the operation of heating equipment by the metals industry.

-Ends- www.zenergypower.com www.australiansc.com / www.scpowersystems.com / www.trithor.com Further information:Dr. Jens Mƒ¼ller Zenergy Power plc + 49 22 26 90 60 200 Andrew Tan Hansard Group + 44 207 245 1100 Tom Hulme Landsbanki Securities + 44 207 426 9000 (UK) Limited About Zenergy Power plc

Zenergy Power plc is a global specialist manufacturer and developer of commercial applications for superconductive materials. Comprising three operating subsidiaries located in Germany (Trithor), USA (SC Power Systems) and Australia (Australian Superconductors), Zenergy is highly focussed on the commercialisation of a number of energy efficient applications to be adopted in renewable energy power generation, energy distribution and large scale, energy intensive industrial processes and achieved the world's first commercial sale of an industrial scale HTS device in September 2007.

About superconductivity

Superconductive materials are capable of conducting electricity without any resistance and were first discovered in 1911 in what was to prove to be one of the most significant scientific breakthroughs of the 20th century.

The global HTS market is substantial and growing, with a number of market studies projecting multi-billion dollar markets for the application of HTS materials and products. The proliferation of the use of superconductor materials is largely being driven by the following key factors:

(a) HTS materials are highly complementary to energy efficient technologies as a substitute for copper

(b) HTS wires have power densities of over 100x that of copper

(c) Current developments are leading to substantially reduced costs in the production of HTS wires and are targeting to be cheaper than copper over the next few years.

(d) HTS applications deliver exceptional energy efficiencies and thus reduced power consumption and running costs

(e) HTS technology is set to play a significant role in reducing CO2 emissions in line with international targets

(f) HTS applications are capable of delivering vastly increased levels of power with increased reliability and reduced material usage