Homeland Security Project

Embargoed Release: 07:00hrs Wednesday 26 March 2008

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

                              Commercial Contract                              
                                      for                                      
                    Department of Homeland Security Project                    

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 it has been contracted, on fully commercial terms,
to carry out a technology employment study of its patented HTS Fault Current
Limiter (`FCL') for Consolidated Edison, Inc. (`Con Edison'), the United
States' largest investor-owned energy company. The study will form the basis of
the formal provision of technical analysis on how the Group's FCL would protect
New York City from the damaging effects of power surges, once installed into
Con Edison's power grid there. Con Edison will also use the study to evaluate
the role that Zenergy's proprietary technology can play in the creation of
`Secure Super Grids' in the United States. The technical analysis is a
commercial contract and forms part of the US$39million U.S. Department of
Homeland Security project named Hydra, which is aimed at developing power grids
in the United States that can keep centres of commerce on line under all
conditions - including grid events related to severe weather, accidents or
terrorist attacks.

Further to this, the Group has also been notified that it is currently the sole
supplier of standalone HTS FCL technologies for the work being carried out on
behalf of the Department of Homeland Security in project Hydra. It is the
Board's belief that the Group's selection for the project on this sole basis -
coupled with continuing financial commitment by the U.S. government -
demonstrates Zenergy's prominence within the growing global HTS industry and
the significant level of commercial interest that exists for its technology and
products.

An HTS FCL is an industrial-scale surge protector designed to protect
electrical grid equipment in national grid systems. Comparable to a computer
network's `firewall', the Group's patented HTS FCL is capable of absorbing huge
amounts of unwanted and highly damaging electrical power generated by fault
currents in national electricity grids without having to interrupt the steady
supply of power to downstream grid users. In doing this, the Group's HTS FCL
not only protects electrical grid equipment from damaging power surges, but
also prevents the common knock-on effect associated with blackouts that occurs
when one part of the grid fails resulting in an `over-spill' of power to an
adjacent grid.

Jay M. Cohen, Under Secretary for Science and Technology, Department of
Homeland Security, commented:

`The Department of Homeland Security is charged with protecting the
infrastructure and systems that keep our nation and our economy running
smoothly. The U.S. power grid is one of our most valuable assets, and we are
taking the steps necessary - through the use of our most advanced technologies
- to ensure its safety. As we saw with the August 2003 blackout and in
incidents since, disruptions to the power grid have far-reaching effects and a
tremendous economic impact.'

Further to this latest funded project from the U.S. Department of Homeland
Security, the Group's ground-breaking HTS FCL also received significant
interest and support from the U.S Department of Energy last year, who provided
the Group with an US$11million grant to further develop its grid stability
devices. Prior to this, the Group was also awarded funding by the Californian
Energy Commission and is currently on schedule to be the first company in the
world to install an industrial scale HTS FCL into the U.S. national grid
system. The global market for FCLs is expected to be worth up to US$5bn per
annum.

Kevin Kolevar, Director of the Office of Electricity Delivery and Energy
Reliability, U.S. Department of Energy, commented:

`The Department of Energy believes HTS technology is vitally important to the
modernization of the nation's power grid. We are pleased to see the Secure
Super Grid project in New York City building on the platform DOE helped to
create over the past 20 years in partnership with U.S. industry. The Secure
Super Grid project is the next logical step for short-length HTS applications
as the Department continues to improve wire performance and materials
challenges required for longer length projects and higher voltages. Together,
these activities will help propel HTS technology toward commercialization.'

The Board considers the commitment to advance the development of HTS
technologies by the Department of Homeland Security as further evidence of the
exceptional benefits and economic advantages inherent in their deployment.
Furthermore, it considers the Group's selection by Con Edison, as the sole
supplier of HTS FCL technical analysis for this project, as indicative of the
Group's recognised and established reputation for excellence and expertise in
the field of HTS technology and devices on a global basis.

                                    -Ends-                                     

Further information:

Dr. Jens Müller                 Zenergy Power Plc        + 49 22 26 90 60 200
                                                                             
Andrew Tan                      Hansard Group            + 44 207 245 1100   
                                                                             
Tom Hulme                       Landsbanki Securities    + 44 207 426 9000   
                                (UK) Limited                                 

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, USA and Australia. Zenergy is highly
focussed on the commercialisation of a number of energy efficient applications
to be adopted in renewable energy power generation, energy distribution and
large scale, energy intensive industrial processes and achieved the world's
first commercial sale of an industrial scale HTS device in September 2007.

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