Government Grant

Embargoed Release: 07:00hrs Monday 2nd July 2007

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

                    Government R & D Grant for 2G HTS Wire                     

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 the German Ministry of Economics and Technology has
notified the Group's wholly owned subsidiary Trithor GmbH, that it has been
awarded a €825,000 development grant.

The grant will be used to fund the collaborative project named "ELSA" with a
total volume of €1,700,000 for the advancement of technical and theoretical
development methodologies and for strengthening the Group's patent portfolio in
the field of `all chemical deposition' processes for the production of 2nd
generation (`2G') HTS wires.

With regard to the massive growth of renewable power generation, Zenergy is
committed to the development of its own proprietary lower-cost production
techniques for 2G HTS wires which it believes to be advantageous over
alternative methods currently being developed by other industry participants.

Having developed this low cost production technique, it is the intention of the
Group to derive value from its 2G technology within other core fields such as
industrial applications, power distribution, power transmission and within the
medical sector.

Working with GTT Technologies GmbH, Zenergy will develop a set of automated,
advanced computational development tools that will enable the accelerated and
systematic research of new layer materials for the advancement of its current
2G wire development. RWTH Aachen Institute for Materials in Electrical
Engineering, Research Center Jülich and University of Tübingen Institute for
Applied Physics will support Trithor GmbH in the transfer of the theoretical
predictions to industrial products.

The issue of this grant to Zenergy´s subsidiary Trithor GmbH by the German
Ministry is viewed as a significant endorsement of the Group's commitment to
the development of an `all chemical deposition' technique for the mass
production of 2G wire which benefits the whole power industry.

Dr. Jens Müller, CEO, commented:

`The successful development of our 2G processes will place us at the forefront
of delivering the most cost effective 2G HTS wire to the multi-billion Euro
market for renewable power generation.'

                                    -Ends-                                     

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                       
                                                                             
Gareth Price / Tom Hulme        Teather & Greenwood      + 44 207 426 9000   
                                Limited                                      
Corporate Finance                                                            

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:

(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.