Private Placements Increase Windflow Capital

15 October 2008

The two stage Windflow capital raising has been a success despite the market turmoil during the second stage uptake of options.

"With a total target for both stages of $10.59 million set in much steadier market conditions in September 2007, we are pleased with the overall outcome of $8.22 million, which is an uptake of nearly 80%,” said Chief Executive Geoff Henderson.  “This highlights the ongoing commitment and confidence of our shareholder base in Windflow's future."

The first stage of the capital raising was a fully subscribed rights issue ($5.04 million) in November 2007, with new shares carrying an attached option exercisable a year later at $3.30 a share. A further $2.6 million was raised through the second stage options exercise which closed on 30 September 2008.

Private placements, also made at $3.30 a share, despite weaker conditions generally on the New Zealand market, have subsequently added nearly $580,000 taking the capital raising result to $3.18 million. A further 175,566 shares related to the placements have been issued, lifting total number of shares on issue to 9,559,813.

Of the private placements, one existing shareholder (Delane Wycoff) now holds 700,000 shares and a substantial security notice has been made to NZX.

On the basis of the post-capital raising issued capital, the state owned enterprise Mighty River Power Ltd will today purchase a 19.95% shareholding in Windflow Technology through subscription to new shares. On completion of that transaction, Windflow Technology will advise NZX further on the level of its issued capital.

Ends.

For further information please contact:

Warren Head

Head Consultants Ltd

Mobile (021) 340 650