Windflow Announces Renounceable Rights Issue

2 May 2005

Wind turbine manufacturer, Windflow Technology Limited will be making a renounceable rights issue in two weeks time. The Company is listed on the NZAX and has about 700 shareholders. It is seeking to raise up to $6 million which will be used to extend manufacturing capacity, complete its initial production run and continue with its program of testing and certification.

"We're close to achieving the goals we set for ourselves four years ago," said Geoff Henderson, Windflow's CEO. "Our first production run is nearing completion; our subsidiary NZ Windfarms now has Carbon Credits, a joint venture partner and the Resource Consent for the 104 turbine Te Rere Hau wind farm near Palmerston North. In addition we have also secured the right to construct a demonstration wind turbine on the 240 MW Lake Bonney windfarm in South Australia. It's great to see all these threads coming together."

Under its new prospectus which was registered on 27 April, Windflow is offering one new share at $2.30 for every two existing shares. Existing shareholders will be allocated rights to purchase the new shares. Windflow expects that some rights will be offered for sale by some of the existing shareholders giving the general public an opportunity to invest in the company. Interested investors will be able to purchase rights which will be listed on the NZAX market from 16 May.

"This gives New Zealanders an opportunity to invest directly in wind power," said Mr Henderson. "It has become the fastest growing form of electricity generation in New Zealand."

The record date for renounceable rights is Friday 13 May and trading opens on Monday 16 May. The opportunity for investors to buy or sell rights ceases on Wednesday 8 June and the offer closes on Friday 10 June. Windflow will hold public meetings between 17 and 25 May in Auckland, Wellington, Nelson, Christchurch and Dunedin to discuss its progress, plans and rights issue.