CALL.L Regulatory News (CALL)

2 Jul 2007 07:00

Embargoed Release: 07:00hrs Monday 2nd July 2007

Zenergy Power plc (`Zenergy' or the `Group') Government R & D Grant for 2G HTS Wire

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 German Ministry of Economics and Technology has notified the Group's wholly owned subsidiary Trithor GmbH, that it has been awarded a ¢â€š¬825,000 development grant.

The grant will be used to fund the collaborative project named "ELSA" with a total volume of ¢â€š¬1,700,000 for the advancement of technical and theoretical development methodologies and for strengthening the Group's patent portfolio in the field of `all chemical deposition' processes for the production of 2nd generation (`2G') HTS wires.

With regard to the massive growth of renewable power generation, Zenergy is committed to the development of its own proprietary lower-cost production techniques for 2G HTS wires which it believes to be advantageous over alternative methods currently being developed by other industry participants.

Having developed this low cost production technique, it is the intention of the Group to derive value from its 2G technology within other core fields such as industrial applications, power distribution, power transmission and within the medical sector.

Working with GTT Technologies GmbH, Zenergy will develop a set of automated, advanced computational development tools that will enable the accelerated and systematic research of new layer materials for the advancement of its current 2G wire development. RWTH Aachen Institute for Materials in Electrical Engineering, Research Center Jƒ¼lich and University of Tƒ¼bingen Institute for Applied Physics will support Trithor GmbH in the transfer of the theoretical predictions to industrial products.

The issue of this grant to Zenergy‚´s subsidiary Trithor GmbH by the German Ministry is viewed as a significant endorsement of the Group's commitment to the development of an `all chemical deposition' technique for the mass production of 2G wire which benefits the whole power industry.

Dr. Jens Mƒ¼ller, CEO, commented:

`The successful development of our 2G processes will place us at the forefront of delivering the most cost effective 2G HTS wire to the multi-billion Euro market for renewable power generation.'

-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 Gareth Price / Tom Hulme Teather & Greenwood + 44 207 426 9000 Limited Corporate Finance 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.