Windflow Technology Ltd announces Renounceable Rights Issue

24 July 2003

Windflow Technology Ltd is marking yet another milestone with the announcement of a Renounceable Rights Issue to shareholders.

The news comes in the wake of the successful opening of the Windflow 500 windmill on Gebbies Pass near Christchurch and is a significant strategic move towards company development.

The offer period for the Rights will run from 28 July - 29 August 2003 with offer documents being mailed to shareholders next week. Shareholders and the general public will learn more about the Company’s activities, plans and views on wind power’s future role in New Zealand and internationally at a series of presentations held during August in Christchurch, Dunedin, Auckland and Wellington respectively.

The Rights Issue means that current shareholders may purchase shares equal in number to those they already hold (one for one) at a cost of NZ$2.00 per share. They may also renounce their rights and sell them to the general public through any New Zealand Exchange (NZX) firm.

"We have been thrilled with the way Windflow Technology Ltd has been so positively received by the public as a whole and we are encouraged by the support shown for our vision of sustainable energy supply. It is clearly a vision shared by many, as indicated by the level of shareholder interest," said Geoff Henderson, Chief Executive Officer, Windflow Technology Ltd.

The company’s prototype windmill, the Windflow 500, started supplying energy to the national grid earlier this month. The world leading twin-blade, torque limiting gearbox system design enables the machine to produce energy more cost-effectively than other windmills, and is helping to position New Zealand as a world leader in wind energy production.

"The Rights Issue is an important milestone for Windflow Technology, as we move forward with development plans for the company," said Mr Henderson.