Windflow Passes Major IEC Milestone

12 August 2009

NZX STATEMENT

All of the documentation for IEC certification of the Windflow 500 turbine has been
submitted to Lloyds Register, the certifying body based in the UK. The final
document was lodged at the end of July for review by Lloyds Register, which is likely
to take a few more months.

Windflow has provided its customer, NZ Windfarms, with regular reports on the
progress towards this and on the minor design improvements made in order to meet
the IEC requirements. There are no known issues to prevent certification of the
latest version of the Windflow 500.

The five Stage 1 Windflow 500 turbines have been operating at NZ Windfarms’ Te
Rere Hau wind farm site near Palmerston North since September 2006 and in the
following years NZ Windfarms placed orders for a further 92 turbines for this wind
farm, knowing at the time of each order that the work required for IEC certification
had not been completed. As a result the turbines installed at and under construction
for Te Rere Hau are slightly different from the latest version submitted for
certification.

The Windflow 500 turbines supplied and being supplied for the Te Rere Hau site are
fit for purpose and Windflow Technology is working with NZ Windfarms to
demonstrate that fact. More than 50 turbines have been commissioned at Te Rere
Hau and they are meeting or exceeding their warranted availability and power output.

“The turbines frequently run in 25-30 m/s winds (90-108 km/h) when imported
turbines have all shut down. We are hugely proud of the performance of the
turbines, the business we have created, our contribution to New Zealand’s
knowledge economy and the fact that we may be the first in the world to achieve
Class 1A certification to Edition 3 of the IEC standard. We have done what we said
we would do in seeking IEC Class 1A certification and we intend to comply fully with
all our contractual obligations, including a full 5 year warranty on all turbines”, said
CEO/Director Geoff Henderson. “We are working with NZ Windfarms to obtain the
appropriate independent expert review of the minor IEC improvements which NZ
Windfarms mentioned in their release yesterday. We do not anticipate any
requirement for mitigation or remediation.”

For further information please contact:
Mr Geoff Henderson, Chief Executive Officer and Director, tel: 03 365 8960