CALL.L Regulatory News (CALL)

22 Aug 2006 08:00

Embargoed Release: 08:00hrs Tuesday 22nd August 2006 Zenergy Power plc (`Zenergy Power' or the `Group') First Day of Dealings Zenergy Power plc (AIM:ZEN), the specialist manufacturer and developer ofcommercial applications for superconductive materials, is today pleased toannounce the admission of its ordinary shares to trading on the AIM market ofthe London Stock Exchange ('AIM'). Teather and Greenwood is acting as nominatedadviser and broker to the Group.Admission StatisticsAdmission price: 84pNumber of ordinary shares in issue upon admission: 36,090,582Market capitalisation upon admission at admission price: ‚£30mBusiness of the GroupThe Group is comprised of three operating subsidiaries located in Germany, USAand Australia. All three of the Group's subsidiaries are established marketparticipants in their respective regions in the commercialisation anddevelopment of applications for superconductive materials.Superconductive materials are capable of conducting electricity without anyresistance and were first discovered in 1911 in what was to prove to be one ofthe most significant scientific breakthroughs of the 20th century. Since thattime two major factors have prevented the widespread deployment ofsuperconductor materials:1. their need to be operated at prohibitively low temperatures; and2. lack of availability of low-cost industrial production processes.The first breakthrough in terms of the realisation of commercial applicationsfor superconductor materials came in 1987 with the discovery of a new breed ofmaterials known as high temperature superconductors ('HTS'). These newmaterials displayed the same resistance free conductive properties as standard'low temperature materials' but could be operated at far higher temperaturessimilar to that of liquid nitrogen - a relatively inexpensive, safe andcommonly available cryogen. This discovery substantially altered the economicsfor the use and adoption of superconductive materials, which could now beoperated using standard conduction cooling technologies and were still capableof delivering over 100 times the power density of alternative copper basedsolutions. Very quickly the commercial potential of this first generation ofHTS (`1G') was realised and the Group is currently extensively engaged in arange of commercial activities with a number of different 1G products withexisting sales and growing revenues. To date, the Group has identified a numberof significant applications in the electrical and industrial equipment marketsand is currently introducing its first large-scale commercial product for usein the industrial metals sector. Further to this the Group is also in anadvanced stage of development of a specialist HTS `fault current limiter' whichthe Directors expect to have widespread applications in the global utilitiessector. Fault current limiters are installed by utility companies to provideprotection for power station equipment and to help prevent power `blackouts'.Following many years of research an effective low-cost process for theproduction of 1G HTS materials on an industrial scale has remained elusive. Inan effort to lower production costs of HTS the industry has developed a secondgeneration of HTS ('2G'), based on the same class of materials as before butcapable of being manufactured using a thin film technology using variousdeposition techniques.Further to its ongoing commercial activities in 1G applications Zenergy Powerhas since 2003 been developing its own proprietary lower-cost productiontechniques which it believes to be advantageous over alternative methodscurrently being developed by other industry participants. Furthermore, ZenergyPower believes that the successful development of these processes will place itat the forefront of delivering cost effective industrial HTS applications thatwill play a key role in the commercialisation and deployment of superconductormaterials. It is then the intention of the Group to exploit its currentcommercial relationships to derive value from its technology within a widerange of sectors including renewable energy production, industrial applicationsand national power distribution. To date these relationships include agreementswith Bƒ¼ltmann GmbH and Delta Star Inc as well as joint project work withConverteam SAS (formerly Alstom Power Conversion) and a number of ongoingdiscussions with several companies in the US utility and the power generationsector.Over ¢â€š¬40m has previously been invested into the research and development of theGroup's various proprietary technologies. The Group is debt free, boasts aleading research and development team including more than 15 PhDs or advanceddegrees based in three countries and a patent portfolio with 17 patents andover 45 patent applications based on 20 patent families.It is the intention of the Group to continue to derive revenues from a range ofproducts based on 1G HTS wires. The Group has generated in excess of $1 millionof sales since 2003 whilst developing its new lower cost production processesfor the manufacture of 2G materials. The Group is currently in advanced stagesof its development activities and looks forward to reporting on furtherprogress as and when appropriate.Mike Fitzgerald, Non-Executive Chairman, commented:`The way in which we produce, consume and distribute energy is a key socialissue that concerns everyone from industrial corporations, Governments andtechnologists right through to private households and individual consumers. Theimportance of this issue has been so compelling that to date we have alreadywitnessed a huge level of investment in new technologies, some of which willplay a significant role in our future and others that will not.However, it is the enabling technologies - those which improve the efficiency,costs and usability of these emerging technologies - that very often flourish.Low cost superconductor materials such as those being developed andcommercialised by Zenergy Power are exactly that and should be viewed as thefibre optics of the energy sector. It is with great pleasure that we bring theGroup to the AIM market and I am in no doubt that the increased profile andstatus afforded to the Group as a result will be a key accelerator in thecommercialisation of its technology.'Copies of the Zenergy Power AIM Admission Document are available from theoffices of Teather & Greenwood Limited.Market Overview and product applicationsThe global HTS market is substantial and growing, with a number of marketstudies projecting multi-billion dollar markets for the application of HTSmaterials and products. The proliferation of the use of superconductormaterials is largely being driven the following key factors:1. HTS materials are highly complementary to energy efficient technologies as asubstitute for copper;2. HTS materials have power densities of over 100 times that of copper;3. HTS materials deliver exceptional energy efficiencies and thus reducedconsumption and running costs;4. HTS materials are capable of delivering vastly increased levels of powerwith increased reliability and reduced material usage; and5. current developments are leading to substantially reduced costs in theproduction of HTS materials.The Group has to date developed a number of commercial applications for its HTSactivities and is seeking to deploy these into three main markets namelyrenewable energy, industrial applications and power distribution. -Ends- For further information:Dr. Jens Mƒ¼ller Zenergy Power + 49 22 26 90 60 200 Adam Pollock (Sales) Teather and Greenwood + 44 207 426 9000 Gareth Price (Corporate Finance) Andrew Tan Hansard Communications + 44 207 245 1100 Teather & Greenwood, which is a member of the London Stock Exchange and isauthorised and regulated in the United Kingdom by the Financial ServicesAuthority, is acting exclusively as nominated adviser and broker to ZenergyPower (for the purpose of the AIM Rules) and no one else in connection with theAdmission and will not be responsible for providing the protections afforded tocustomers of Teather & Greenwood nor for providing advice in relation to thecontents of this announcement or any matter, transaction or arrangementreferred to in it. Teather & Greenwood's responsibilities as Zenergy Power'snominated adviser and broker under the AIM Rules are owed solely to the LondonStock Exchange and are not owed to Zenergy Power or to any Director or to anyother person in respect of their decision to acquire Ordinary Shares in ZenergyPower in reliance on any part of this document. No representation or warranty,express or implied, is made by Teather & Greenwood as to the contents of thisannouncement or for the omission of any material, for which it is notresponsible.ENDZENERGY POWER PLC