Development and Supply Collaboration

Embargoed Release: 07:00hrs Monday 1 October 2007

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

             Joint Development and Supply Agreement - Metal Tapes              

                               for 2G HTS Wires                                

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 ThyssenKrupp VDM GmbH (`ThyssenKrupp VDM'), one of
the world's largest industrial suppliers of nickel alloy materials, has elected
to enter into a 5-year joint development agreement with the Group's wholly
owned subsidiary Trithor GmbH. As a result of the agreement, ThyssenKrupp VDM
will not enter into any collaborative development agreements with any other HTS
industry participants for a 5-year period and will solely develop in
conjunction with Zenergy industrial scale supplies of textured nickel tape to
be used in the mass production of 2G HTS wire.

The selection of Zenergy by the world's largest producer of this key 2G
component is viewed by the Board as a significant endorsement of the Group's
existing commercial activities, and in particular the substantial commercial
potential available to the Group through its activities within the renewable
energy markets. ThyssenKrupp VDM entered this arrangement in response to the
anticipated increase in the Group's requirements for textured nickel tape for
the manufacture of 2G wire resulting from its current commercial activities
with Converteam SAS within the global wind and hydro power markets.

Textured nickel tape is a highly specialised material known as a `Superalloy'
and is being pursued by the HTS industry as the `replacement of choice' for the
existing high-cost silver based solutions currently used in HTS wire. As
previously announced, it is the expectation of the Group that the successful
development of mass produced 2G wire will place Zenergy at the forefront of the
HTS industry, enabling the delivery of cost effective industrial HTS
applications capable of playing a key role in improving the efficiency with
which electrical energy is produced, distributed and consumed.

Further to guaranteeing Zenergy a commercial supply of textured nickel tape,
the agreement brings together in a formal environment the advanced material
development teams of both Zenergy and ThyssenKrupp VDM. ThyssenKrupp VDM is a
wholly owned subsidiary of ThyssenKrupp Stainless AG which brings together all
ThyssenKrupp VDM's activities in the area of stainless steel nickel alloy and
titanium products. The company, which had a turnover in excess of €6.4bn in
2006, is an established global leader in stainless steel flat-rolled products
and nickel alloys.

The close collaborative nature of this agreement is anticipated to contribute
significantly to the Group's ongoing 2G development activities in assisting it
to continue its development of world-leading IP and in ensuring the commercial
availability of highly specialised materials ahead of anticipated increases in
demand resulting from the Group's commercial activities.

Further to the significant cost savings generated through the use of the
cheaper materials offered by ThyssenKrupp VDM, the textured nickel tape is also
central to the Group's ground breaking `all-chemical' mass production
techniques. Subject of a recent grant from the German Ministry of Economics and
Technology, Zenergy's `all-chemical' production techniques are expected to make
available to the Group highly economically viable superconductor materials for
commercial exploitation. Contributing to this development process, it is
anticipated, that the close working relationship between Zenergy and
ThyssenKrupp VDM will ensure greater quality assurance for the Group as the
traditional supplier relationship matures towards one of a mutually
collaborative joint development partnership. The collaborative nature of this
relationship will enable Zenergy to provide ThyssenKrupp VDM with rapid and
detailed feedback on the mass production of the textured nickel tape for
specific use in Zenergy's 'all-chemical' production processes and will
contribute to the overall quality of the Group's final 2G products.

ThyssenKrupp VDM, commented:

`Over the years that we have worked with Zenergy we have been continually
impressed by their ability to develop world class products capable of
addressing huge global markets. Further to this, their recent progress in
aligning themselves to access these global markets through commercial
collaboration with established industry participants such as Converteam SAS has
convinced us of their ability to succeed in their commercial ambitions.

This coupled with their technical know-how and our engineering experience and
industrial production capabilities gives us great confidence in entering into
this collaborative arrangement. Together we can accelerate the deployment of
industrialised products to market that will have the ability to impact the way
in which consumers, producers and distributors use and produce energy. This is
a very exciting prospect for ThyssenKrupp VDM and we look forward to deepening
our relationship with Zenergy.'

Jens Müller, CEO, Zenergy, commented:

`This agreement represents a strong validation of our 2G wire programme by one
of the worlds leading industrial organisations and addresses one of the most
fundamental challenges of 2G wire development; namely assured industrial supply
of textured nickel tape. As a consequence, the collaborative nature of the
agreement will better assure the delivery of our overall 2G programme and I
look forward to reporting on further progress in the second half of the year.'

                                    -Ends-                                     

Further information:

Dr. Jens Müller                 Zenergy Power Plc        + 49 22 26 90 60 200
                                                                             
Andrew Tan                      Hansard Group            + 44 207 245 1100   
                                                                             
Gareth Price / Tom Hulme        Landsbank Securities     + 44 207 426 9593   
                                (UK) Ltd.                                    

About Zenergy Power 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 ThyssenKrupp AG

High-performance materials for special applications and processes.

ThyssenKrupp VDM GmbH, a company of ThyssenKrupp Stainless GmbH. celebrated its
75th anniversary in 2005.

For many decades it has developed high-performance materials for especially
demanding applications and processes.

Today, ThyssenKrupp VDM is the leading producer of nickel-alloys and high
alloyed special materials.

The production program includes sheet and plate, rod and bar, forgings, strip,
wire and materials for tube and pipe production.

ThyssenKrupp VDM supplies all-round packages for chemicals and petrochemicals,
energy and environmental engineering, offshore and marine engineering, the
automotive industry, aerospace, electronics and electrical engineering.

The company is based in Werdohl and has further production facilities in
Altena, Siegen, Unna and Werdohl-Bärenstein.

It has a division in the U.S.A. named Precision Rolled Products, Inc., which
produces high-temperature materials for the aviation industry at plants in Reno
and Florham Park.

The five ThyssenKrupp VDM plants with their worldwide sales organization and
the plants of Precision Rolled Products together employ more than 1,700 people.

To ensure optimal cooperation with customers in the industrial engineering,
electrical and electronic sectors and the aerospace and automotive industry
ThyssenKrupp VDM has built up a network of advisory and sales offices,
marketing companies, representatives and authorized stockholders and
distributors.

ThyssenKrupp VDM's targets are:

Consistent implementation of customer requests into products and applications

Projected development of the market leadership

The worldwide leading position among the producers of nickel alloy

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