CALL.L Regulatory News (CALL)

9 Aug 2007 07:00

Embargoed Release: 07:00hrs Thursday 9th August 2007

Zenergy Power plc (`Zenergy' or the `Group') Core Patent in Key Renewable Energy Markets

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 the Group has been granted a core patent covering its groundbreaking HTS coils in Germany. This patent is of particular significance as the HTS coil represents the central component in the manufacture of a new class of highly energy efficient, compact and lightweight electricity generators. These generators are to be sold to industry participants within the renewable energy sector to improve the efficiencies associated with the production of electricity and are projected to be capable of reducing the overall costs associated with the production of renewable energy including up to a 25% reduction in offshore wind power costs.

HTS generators are a new class of electricity generator based around the use of HTS materials in place of traditional copper-based components that are being developed by the Group and its partners with the backing of a number of government and public bodies including the European Commission, German Ministry of Economics and Technology and the UK government's Department of Trade and Industry ('DTI'). Once developed and deployed it is estimated that Zenergy's addressable market for its HTS components within the wind power and hydro power markets will be worth in excess of ¢â€š¬2.6bn per annum. Currently, the Group is working to install the world's first HTS hydro generator into E.ON Wasserkraft GmbH's (`E.ON') commercial hydroelectric power station based at Hirschaid in Bavaria, Germany. Once successfully tested, the 1.25 MVA superconductor generator is scheduled to power approximately 2,000 households on an ongoing basis through E.ON grid operation. To date testing has demonstrated that Zenergy's components are capable of delivering efficiency levels of greater than 98% in the generation of hydro-electric power.

As announced on the 12th of March 2007, Zenergy has been selected by one of the world's leading electricity generator manufacturers, Converteam SAS (`Converteam'), to be their exclusive supplier of all HTS materials and components to be used in the production of HTS generators being developed for the wind and hydro power markets. The selection as the exclusive supplier by such an established participant within the global energy market was in part in recognition of the engineering expertise that the Group had accumulated during the development of its HTS coils and outlines the significant value protected by this patent. Demonstration of the Group's expertise can be found in the fact that the HTS coils covered by this patent have been engineered to be able to operate within - and withstand - the extreme electromagnetic forces occurring in the largest direct-drive wind power generators, which often exceed 40,000 tonnes per square metre. The Board considers that the extreme engineering challenges that these conditions represent to potential HTS component manufacturers, act as significant barriers to entry to this global billion dollar market and further support the significance of the grant of the Group's coil patent.

Currently, Converteam is leading a DTI-funded project to design a high-power (8MW) direct-drive superconducting wind generator, based on the technology that is subject to this patent grant. The new class of HTS generators will be significantly smaller than conventional generators and just one quarter of the weight. This is anticipated to achieve electricity cost savings of around 25%.

Dr. Jens Mƒ¼ller, Group CEO, commented:

'We are delighted to have been granted this particular patent which covers a key component that has been subject to many years of investment and development by the Group. Being selected by Converteam to be their exclusive supplier of HTS materials and components has provided the Group with direct channels to extremely lucrative markets; the grant of this patent protects our value in those markets and is key to our strategy of protecting our clear leadership position through our first mover advantage.

From a technical perspective, our coils represent years of cutting-edge research and engineering innovation and I would like to thank all of those that have contributed to their development.'

-Ends- Further information:Dr. Jens Mƒ¼ller Zenergy Power Plc + 49 22 26 90 60 200 Andrew Tan Hansard Group + 44 207 245 1100 www.hansardgroup.co.uk Tom Hulme Landsbanki Securities + 44 207 426 9000 (UK) Limited About Zenergy Group 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 developing a number of energy efficient applications to be adopted in renewable energy power generation, energy distribution and large scale, energy intensive industrial processes.

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