Flowgroup Regulatory News (FLOW)

Energetix Group plc

("Energetix" or "the Group")

Electricity Supply Licence &

Software Licence Agreement with Utilisoft Limited

Energetix Group plc, (AIM: EGX), which develops and commercialises alternative and efficient energy products, announces that, as part of the process of creating a new energy supply company, it has acquired from Utiligroup Limited, part of Bglobal plc, the entire issued share capital of Circuit Energy Supply Limited, a company which has a pre-accredited electricity supply licence which will enable Energetix to trade electricity in the UK.

Circuit Energy Supply Limited has the benefit of the accreditation from Elexon, which demonstrates that it accedes to the Balancing and Settlement Code, the rules that govern electricity trading.

Energetix also announces that Circuit Energy Supply Limited has signed a software licence agreement with Utilisoft Limited (a subsidiary of Utiligroup Limited), whereby Utilisoft will supply the Group with its energy data management software.

As announced on 29 February 2012 Energetix will create a new energy supply company, provisionally called Kingston Energy, which will provide free Kingston microCHP boilers to its customers in return for a commitment to purchase gas and electricity for a fixed period.

Obtaining the electricity supply licence and the installation of the software is the first step in the plan to create a successful dual fuel energy business and Energetix will seek to acquire an additional licence to supply gas.

Tony Stiff, Chief Executive Officer of Kingston Energy, said, "We are very pleased to achieve this first important milestone and we are on track for delivery of a functioning energy supply business in the fourth quarter of this year as planned."

Tim Jackson-Smith, CEO of Bglobal PLC commented: "We are delighted to be working with Energetix to enable them to enter the energy supply market. We are excited to be associated with this opportunity due to the unique proposition that Energetix will be offering to energy consumers and to be working with their management team which has proven operational experience within the energy market.

"One of the core aims of Bglobal's "making energy count" strategy is to help the energy supply market become more efficient, competitive and agile by enabling new entrants, such as Energetix, to start up and operate more efficiently. Ultimately, we believe that by having more competitive energy suppliers in the market, the benefits will be felt most by energy consumers."

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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. On 29 February Energetix announced that it would create a unique dual fuel energy company, provisionally named Kingston Energy, which will provide free Kingston microCHP boilers to its customers in return for a commitment to purchase gas and electricity for a fixed period.

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.