Windflow Technology Half-Year Report to 31 December 2006 Released

30 April 2007

Windflow Technology released its half year report for the six months ended 31st December 2006 on Friday.

The highlight of the period was the official opening, by Prime Minister Rt Hon Helen Clark, of the Te Rere Hau wind farm (Stage 1) in September 2006 in gale force winds. Since then the five turbines' performance and reliability has met all expectations and the Te Rere Hau Joint Venture has confirmed an order for a further 14 turbines.

The Joint Venture consists of Babcock & Brown Windpower (the fourth largest wind farm operator in the world) and NP Power (a specialist US wind farm investor) as a 50% partner with NZ Windfarms in the Te Rere Hau wind farm.

Financially, the half year loss of $905,913 reflected the sales of the first five production turbines to the Joint Venture at an anticipated loss and Windflow's ongoing commitment to achieving international certification for its Windflow 500 turbine.

The company's immediate plans going forward are:

• " To continue monitoring and documentation of the Windflow 500 for certification purposes to the International Electrotechnical Commission's highest wind speed and turbulence classification.
• " To continue ordering components for the next 14 turbines for Te Rere Hau and to continue the civil works on site throughout 2007.
• " To put in place the infrastructure and resources Windflow will need as it moves forward into manufacturing 60 turbines a year in 2008.

Further information:
Tim Armitage
Armitage Consultancy
Tel: 03 365 8960
Email: tim@armi.co.nz