Flowgroup Regulatory News (FLOW)

Energetix Group Plc

("Energetix" or the "Company")

Energetix Genlec Limited and ScottishPower enter into agreement for the trial of the Kingston microCHP boiler

Energetix Group plc, (AIM: EGX), which develops and commercialises alternative and efficient energy products, announces that its subsidiary Energetix Genlec Limited ("Genlec") has today entered into an agreement with ScottishPower to trial the Kingston microCHP boiler.

Under the agreement Genlec will install the Kingston and data monitoring equipment in a range of different domestic premises. The trial is part of Genlec's field performance evaluation and will help optimise the performance prior to release of the production version later this year. It will also allow ScottishPower to fully evaluate the system working in a domestic setting and understand the potential benefits to customers.

ScottishPower and Genlec will work together during the trial to evaluate opportunities for volume roll out of microgeneration for its customers and the potential arising from the Government's Green Deal which is anticipated to be in place by the end of 2012.

Commenting Tony Stiff, Group Commercial Director of Energetix Group, said: "It's a testament to the hard work of the Genlec team over several years in creating a low cost microgeneration solution that one of the major energy companies in the UK has agreed to be a trial partner. This agreement will allow Genlec to demonstrate in a live environment the performance and economics of our solution".

Neil Clitheroe, CEO of ScottishPower Energy Retail and Generation said, "We are encouraged by what we have seen from the Kingston microCHP boiler, and we believe that the system could deliver real benefits for our customers. Through our trial of the technology, we aim to fully understand how the system operates in a variety of different homes. This system has the potential not only to help reduce customers' energy bills, but also to generate some extra income and reduce CO2 emissions. At ScottishPower we are always seeking to establish innovative partnerships to remain at the forefront of technology developments in the industry and continue to deliver the best services to our customers."

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About Energetix Group plc

Energetix Group plc is a developer of cost-effective products to meet the growing global demand for alternative energy, with particular focus on distributed generation, energy storage, and energy efficiency. Currently Energetix has two subsidiary businesses:

Genlec - distributed energy generation for domestic dwellings.

Pnu Power - back-up power for the Telecom, Technology and power transmission markets.

In addition, Energetix has a c.27% stake in VPhase plc, an energy efficiency business Energetix created and subsequently spun out of Energetix in 2010. VPhase is now a standalone independently funded commercial venture.

With all technology development now completed Energetix is well positioned as both its subsidiaries move into the latter phases of commercialisation with their best-of-breed solutions.

Genlec

Genlec has developed a highly efficient, compact and light weight, wall mounted microCHP (Combined Heat and Power) appliance known as the Kingston Boiler. The Kingston boiler is specifically designed to generate 1kW of electrical power to meet the UK's Microgeneration Certification Scheme (MCS) to enable UK owners to receive the Government's 12.5p/ kWh feed in tariff for approved microCHP devices. The Kingston boiler therefore has an inherent low total cost of ownership (initial outlay plus maintenance) and has already demonstrated industry leading payback cycles which many analysts believe is the key to unlocking this significant market opportunity.

CE certification of the boiler has been obtained and initial units have been installed in employee homes. During 2011 a production version of the Kingston boiler was developed and this is also going through the CE certification prior to a roll out of 40-50 units during the Spring of 2012.

Pnu Power

Pnu Power focuses on the provision of compressed air back-up power which can ensure an uninterruptible power supply for critical systems, particularly for the telecoms, data centre and power transmission markets. Pnu Power range has been extended to include the DC100 product that can now meet the demand of the rapidly growing Green Data Centre market, providing a low carbon alternative to flywheels. Pnu Power has been successful in achieving repeat trial sales and is now poised to move out of the trial sales phase and into full volume commercial sales.

Energetix Group joined AIM in August 2006. The Group and its subsidiaries and associates are all based near Chester, NW England.