Exclusive Renewable Power Generation Agreement

Embargoed Release: 07:00hrs Monday 12th March 2007

                               Zenergy Power PLC                               

                          (`Zenergy' or the `Group')                           

                       Exclusive Co-operation Agreement                        

                  for wind and small hydropower applications                   

              between Converteam Group SAS and Zenergy Power plc               

Converteam Group SAS, the international developer of systems and customised
solutions for the conversion of electrical energy, and Zenergy Power plc (AIM:
ZEN.L), the specialist manufacturer and developer of commercial applications
for superconductive materials, are pleased to announce that they have entered
into a five-year exclusive co-operation agreement to jointly develop,
manufacture, market and sell high-temperature superconductor ('HTS') generators
into the global wind and small hydropower markets. As part of this agreement,
Zenergy becomes the exclusive supplier for HTS wires and coils for all
Converteam's commercial activities in relation to wind power and small
hydropower projects.

With an unrivalled reputation for technical excellence and innovation,
Converteam already enjoys a leading position in the wind power market, and
accordingly, Zenergy considers Converteam to be the ideal partner to safeguard
and accelerate the route to market for its patented HTS materials and products.

The partnership follows a long working association between Converteam and
Zenergy and represents a significant opportunity for both companies, who
believe offshore wind power to be potentially the largest and most commercially
viable market for HTS technology. The project will leverage the joint technical
and marketing resources of both companies to maximise the penetration of
Converteam HTS generators in the renewable energy markets, prospectively
conferring a substantial competitive advantage in a market where barriers to
entry are high and first mover advantages are significant.

Currently, Converteam is leading a UK Department of Trade and Industry (DTI)
funded project to design a high-power (8MW) direct-drive superconducting wind
generator, based on Zenergy's HTS technology. The HTS generator will be
significantly smaller than conventional generators and just one quarter of the
weight. This is anticipated to achieve electricity cost savings of around 25%.

In another collaborative effort, Zenergy and Converteam have already made
encouraging progress within the small hydropower sector. In October of 2006,
the European Commission funded the installation of the world's first HTS
hydro-generator - developed by Zenergy and Converteam - into E.ON Wasserkraft
GmbH's ('E.ON-WK') commercial hydro-electric dam in Bavaria, Germany. This HTS
hydro-generator delivers significant improvements to electrical efficiency when
compared to existing copper based generators. E.ON-WK is Europe's largest
producer of hydro-electric power with over 10 billion kilowatt hours of
electricity produced each year, and Zenergy and Converteam view the commercial
interest of E.ON-WK in HTS generators as a persuasive and significant
endorsement of the improvements to economic return that HTS can bring to
renewable power generation.

Pierre Bastid, CEO & President of Converteam, commented:

"We believe that the extraordinary electrical efficiency and power density
enjoyed by HTS wind turbines represent the most viable solution for overcoming
the most challenging and prohibitive technical and economic challenges faced by
the renewable power generation industry. Having worked very closely with the
Zenergy team over a long period we consider their innovative approach to HTS
technology combined with our system integration capabilities to be highly
effective."

Michael Fitzgerald, Chairman of Zenergy, commented:

`Wind power generation represents the most mature source of renewable energy
production. Converteam shares this belief and has clearly stated its intention
to be at the forefront of this industry. Converteam's proven ability to produce
and deliver products of excellence is incontrovertible and we are very excited
to now be working together on developing cutting-edge technologies based around
our patented materials and products.'

                                    -Ends-                                     

                              www.converteam.com                               

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

For further information:

Converteam Group             Converteam Group SAS   + 33 1 64 53 83 12            
                                                                                  
Jean-Jacques Gouble,                                                              
                                                                                  
Sen. VP, Technology                                                               
                                                                                  
Press contact:                                                                    
                                                                                  
Nathalie Renard              Converteam Group SAS   + 33 1 64 53 83 33            
                                                                                  
Sen. VP, External                                   [e-mail]
Communications                                                                    
                                                                                  
Zenergy Group                                                                     
                                                                                  
Dr. Jens Müller              Zenergy Power Plc      + 49 22 26 90 60 200          
                                                                                  
CEO                                                                               
                                                                                  
Andrew Tan                   Hansard Group          + 44 207 245 1100             
                                                                                  
                             www.hansardgroup.co.uk                               

About Converteam Group SAS

Converteam Group is a world leader in power conversion engineering. Building on
over a century of experience, it is firmly placed at the leading edge of
technology and innovation with a global reputation for excellence in the
conversion of electrical energy. Converteam develops and provides solutions
built around three core components: rotating machines, drives and process
automation. Serving specialized sectors as well as its core markets in Marine &
Offshore, Oil & Gas, Energy and Industry, its 3,500 staff members provide power
conversion solutions worldwide. At year-end 06, the Converteam sales will total
more than 650,000,000 EUR.

About Zenergy Group 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 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:

  * HTS materials are highly complementary to energy efficient technologies as
    a substitute for copper;
   
  * HTS wires have power densities of over 100X that of copper;
   
  * HTS materials deliver exceptional energy efficiencies and thus reduced
    consumption and running costs;
   
  * HTS technology is set to play a significant role in reducing CO2 emissions
    in line with international targets;
   
  * HTS applications are capable of delivering vastly increased levels of power
    with increased reliability and reduced material usage; and
   
  * current developments are leading to substantially reduced costs in the
    production of HTS materials and are targeted to be cheaper than copper over
    the next few years.