Flowgroup Regulatory News (FLOW)

Energetix Group plc

("Energetix" or "the Group")

Supply Agreement between VPhase and Eaga Heating Services Limited

Energetix Group plc (AIM:EGX), a group of companies with three cost-effective products (Pnu Power, Genlec and VPhase) to meet the growing demand for alternative energy, is pleased to announce that its associate company VPhase plc, (AIM:VPHA), a leading developer of energy saving products for residential and commercial properties, has today signed an agreement with Eaga Heating Services Limited ("Eaga"), a subsidiary of Eaga plc. The agreement between Eaga and VPhase's subsidiary, VPhase Smart Energy Limited, is for the nationwide supply of the VPhase VX1 energy saving device. Energetix has a 43% stake in VPhase, which currently has a market capitalisation of £19 million.

The agreement, with one of Europe's fastest growing suppliers of renewable energy systems and related services (LSE: EAGA), runs for a minimum of three years and targets sales of more than 5,000 units per annum.

Rick Smith Chief Executive Officer of VPhase commented: "I am delighted to be working with Eaga. As noted at our interim results in September, the establishment of framework agreements with key players like Eaga is core to the rapid deployment of VPhase's low cost, simple to install, 'fit and save' voltage optimisation unit. The announcement is particularly timely given our TV advertising campaign that commences on Christmas Eve in the Granada region."

Rob Bailey of Eaga Heating Services Limited commented: "The VPhase VX1 is an ideal product to complement our current domestic energy saving residential offerings. Having an affordable ground-breaking product such as the VPhase VX1 will help to offset concerns with rising fuel prices and reduce carbon emissions. We look forward to a close working relationship with our partners at VPhase."

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About Energetix Group plc

Energetix Group plc has three businesses with cost-effective products to meet the growing global demand for alternative energy. With a focus on distributed generation, energy storage and energy efficiency, the Energetix businesses are:

·; Energetix (Pnu) Power Limited - compressed-air back-up power;

·; Energetix Genlec Limited - distributed generation in the home; and

·; VPhase plc - domestic energy efficiency.(c.42% owned by the Group)

Energetix's strategy is to create products based on robust engineering principles, regularly utilising existing mass-produced components configured in a novel and patentable way. Avoiding cutting-edge science has enabled the Group's businesses to de-risk the new product development process which in turn reduces development time and costs. This has enabled the businesses to have a lower-than-normal technology risk while still producing strong intellectual property. In addition, this facilitates the outsourcing of production and assembly, significantly reducing the Group's investment in capital equipment. The body of know-how developed within the Group has also enabled our businesses to modify the design of existing mass-produced components to reduce costs, improve efficiency and strengthen the Group's intellectual property position.

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

www.energetixgroup.com