E.ON Wasserkraft GmbH Collaboration

Embargoed Release: 07:00hrs Monday 23rd October 2006

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

       Hydro-Generator Collaborative Project with E.ON Wasserkraft GmbH        

Zenergy Power plc (AIM:ZEN.L), the specialist manufacturer and developer of
commercial applications for superconductive materials, is pleased to announce
that following an extensive period of collaboration, E.ON Wasserkraft GmbH has
elected to install the world's first high-temperature superconductor
hydro-generator in its commercial hydroelectric power station based at
Hirschaid in Bavaria, Germany.

The development and installation of the 1.25 MW generator is to be part funded
by the European Commission and is expected to improve the economic return of
renewable energy production as a result of a significant increase in the level
of electrical efficiency of the generator.

The hydro-generator will be based around Zenergy's patented high-temperature
superconductor materials which will enable the production of a hydro-generator
capable of delivering efficiency levels of greater than 98% which is a
significant improvement on current efficiency levels achievable with standard
hydro-generator technologies. The projected cost of the overall development and
installation is set to be €3.44 million of which the European Commission will
provide €1.85 million.

The 1.25 MW superconductor generator will be built by Converteam (formerly
ALSTOM Power Conversion), utilizing superconductive coils made by the Group's
German operation Trithor GmbH. The superconductor generator is to be used as a
replacement for an existing generator and is expected to improve the efficiency
of E.ON Wasserkraft GmbH hydro-electric power generation. Further technical
input for the generator is being provided by Dutch company KEMA, the Silesian
University of Technology and the British company, Vector Fields. A maintenance
free cryogenerator for the cooling of the generator will be provided by the
Dutch cryogenic company, Stirling.

Once successfully tested, the superconductor generator is scheduled to power
approximately 2,000 households on an ongoing basis through E.ON Wasserkraft
GmbH grid operation.

E.ON Wasserkraft GmbH is a wholly owned subsidiary of E.ON AG, the world's
largest investor-owned energy service provider, which is currently on track to
becoming the world's leading power and gas company with current annual sales of
more than €56 billion and circa 80,000 employees. As Germany's largest producer
of hydro-electric power, E.ON Wasserkraft GmbH currently produces more than 10
billion kilowatt hours of hydro-electric power per annum.

Ulrich Fuchs, head of Electrical Engineering, E.ON Wasserkraft GmbH, commented:

`To be the world's first utility company to implement high-temperature
superconductor materials into its power generation equipment is a hugely
exciting prospect for E.ON Wasserkraft GmbH. As Europe's largest producer of
hydro-electric power we are ideally positioned to benefit from the economic
improvements that Zenergy's technology brings to the production of renewable
energy.

We very much look forward to having this generator in ongoing grid operation
and would like to thank the European Commission for its ongoing support for
this ground breaking work.'

Michael Fitzgerald, Chairman, Zenergy, commented:

`To be selected by one of the world's largest energy utilities for such a
pioneering project is a major endorsement of the Group's technology and its
commercial potential. It is our belief that by delivering such high efficiency
levels, our superconductor materials are capable of having a significant impact
on the economies of renewable energy production.'

                                    -Ends-                                     

                             www.zenergypower.com                              

        www.australiansc.com / www.scpowersystems.com / www.trithor.com        

For further information:

Dr. Jens Müller                 Zenergy Power Plc        + 49 22 26 90 60 200
                                                                             
Andrew Tan                      Hansard Group            + 44 207 245 1100   
                                                                             
                                www.hansardgroup.co.uk