CALL.L Regulatory News (CALL)

22 May 2007 07:00

Embargoed Release: 07:00hrs Tuesday 22nd May 2007

Zenergy Power plc (`Zenergy' or the `Group') Key Development Milestone

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 its research and development team has completed the construction and successful testing of the Group's ground breaking HTS induction heater ahead of its Q3 schedule. As anticipated, the HTS induction heater operated with energy efficiency levels of over 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 industrialised countries is directly attributable to the operation of heating equipment.

Following this achievement, the Group's commercial product is now available for sale and management expectation is that initial HTS induction heater sales will be made to customers from whom the Group has already received clear expressions of interest.

The current addressable market for the Group's induction heaters is estimated at c. ¢â€š¬2 billion per annum.

The Group's HTS induction heater was developed in conjunction with Bƒ¼ltmann GmbH (`Bƒ¼ltmann'), one of the world's leading suppliers of industrial machinery to the metal processing industry. In addition to its engineering expertise, Bƒ¼ltmann will also provide the Group with an initial channel to market for the HTS induction heater through its existing commercial activities, as well as relationships within the global metals industry.

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.

Further validation of the environmental significance of the Group's machine has been provided by the German Environmental Fund, who contributed significant development funds to the Group following extensive due diligence. This funding was provided in recognition of the potential environmental improvements which the HTS induction heater could deliver. It is the firm belief of the Board that the increased energy efficiency will also deliver substantial cost savings whilst simultaneously playing a significant role in greatly reducing the metal industry's annual carbon footprint. From a cost savings perspective, it is anticipated, that when run at full capacity, the Group's induction heater is capable of yielding ongoing cost savings equivalent to its total initial purchase price in as little as 5 years.

Ongoing testing has demonstrated that the Group's HTS induction heater renders greatly improved heating performances with reduced heating times. These attributes further demonstrate the superiority of the Group's HTS solution over conventional copper-based machines.

Dirk SchĦtz, Technical Officer Climate Protection and Energy Technology, of German Environmental Fund, commented,

`It is our belief that the HTS products being developed by Zenergy are capable of having far reaching impacts on current endeavours to reduce global carbon emissions. The exceptional efficiency levels of HTS products represent a fundamental step change in the energy requirements of a number of global industrial processes, and we are very proud to have supported the development of one of the world's first truly commercial HTS products.'

Michael Fitzgerald, Chairman, added:

`At the end of last year we set out a number of definable milestones to mark our progression to commercialised products based around our core HTS intellectual property. To have a fully developed induction heater, capable of delivering so many benefits to our end users, ahead of schedule, is testament to our research and development team and I look forward to reporting on the commercial progress that we achieve within our target markets.

Our induction heaters deliver not only huge reductions in energy consumption but also superior and faster performance. These combine to make a commercially compelling product that can further assist companies in their efforts to meet carbon emission targets and save significant costs.'

-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 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.