Joint Development Agreement with Honeywell

Embargoed Release: 07:00hrs Monday 29th September 2008

                               Zenergy Power plc                               

                          (`Zenergy' or the `Group')                           

           Zenergy Signs Joint Development Agreement with Honeywell            

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 Group's German subsidiary Zenergy Power GmbH
has entered into a five-year joint development agreement (`JDA') with Honeywell
Specialty Products, a global leader in high-performance speciality material
production. Under the agreement, Honeywell will work with the Group's 2G
research and development team to develop a range of chemical precursors to be
used in Zenergy's unique industrial scale `all-chemical' manufacturing process
for the volume production of 2G HTS wire.

Honeywell's decision to partner with Zenergy endorses not only the Group's
unique 2G HTS wire production techniques but also the potential scale of the
overall 2G wire market. To date, Zenergy has developed an innovative reel to
reel `all chemical' deposition process for the mass manufacture of 2G HTS wire.
Once the development of this process fulfils the Group's exacting standards it
is widely expected to become the most cost effective and efficient
manufacturing process for 2G HTS wire. Currently, Zenergy are developing a
number of highly energy efficient industrial products that will adopt the 2G
wire material in its production to further enhance its commercial
competitiveness. In Honeywell, the Group gains a strong collaborator from the
chemical industry with complementary expertise to further develop superior
methods of chemical processing. In addition, Zenergy will secure a reliable
suppler of high quality and substantial quantities of chemical precursors
necessary for the predicted scale-up of 2G HTS wire production.

This JDA together with the ongoing exclusive agreement with ThyssenKrupp VDM
(for the industrial provision of textured nickel tape) presents Zenergy with
one of the strongest research and development foundations from which to
industrialise and launch its 2G HTS wire. Further to this, the Group has also
secured an industrial supplier base for raw materials with two world leaders in
their respective industries who are demonstrating their commitment to, and
belief in, the massive potential of this ground-breaking market.

Michael Fitzgerald, Chairman of Zenergy Power, commented:

"This agreement is another major step forward for us towards
the industrialisation of 2G HTS wire. With our two major industrial partners,
Thyssen and Honeywell, we are confident we will establish the secured
industrial supply chain required for the large-scale renewables generator
market. This is of particular importance to the Group at this time as the first
of our energy efficient products is now fully commercialised and the
development of our other applications are progressing well. As we continue to
achieve these technical accomplishments we are increasing the depth of our
commercial engagement with a number of industrial customers and are accordingly
increasingly aware of the importance of having a secure supply chain of
materials for the industrial scale production of our HTS products and
components. Furthermore, the commitment of resources from another established world class
industrials group gives us continued confidence not only in the credibility of
our unique all-chemical approach to 2G wire production, but also in the scale
of the commercial opportunity that lies within the emerging HTS market."

 

                                    -Ends-                                     

Further information

Dr. Jens Müller                 Zenergy Power Plc        + 49 2226 9060 200  
                                                                             
Vikki Krause                    Hansard Group            + 44 207 245 1100   
                                                                             
Tom Hulme                       Landsbanki Securities    + 44 207 426 9000   
                                                                             
                                (UK) Limited                                 

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, USA and Australia, Zenergy is
focused on the commercialisation of its energy efficient applications for
energy intensive industrial processes, power distribution and renewable power
generation. Zenergy achieved the world's first sale of an industrial scale HTS
induction heater, which is now fully operational.

Zenergy's HTS applications enable, or aim to enable:

(a) Induction Heaters to halve the amount of energy required to heat aluminium
and copper billets;

(b) Fault Current Limiters to protect power grids from blackouts;

(c) Hydropower stations to significantly increase energy output by up to 15%;
and

(d) Offshore wind turbines that are in excess of 8 MW to reduce the cost of
power production by up to 25%.

About superconductivity

Superconductive materials are capable of conducting dc 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.