Windflow Technology Welcomes Tremendous Support

10 May 2007

Windflow Technology Limited is delighted with the announcement by NZ Windfarms that it has lodged for registration an Investment Statement and Prospectus for its recently announced $75 million share issue, with institutional investors' and NZX firms' allocations being oversubscribed by 40%.

Geoff Henderson, CEO of Windflow Technology, the company that designed and is manufacturing the turbines for the 97 turbine, NZ Windfarms 48.5MW wind farm, Te Rere Hau states:

"The tremendous support by institutional investors and NZX firms for the NZ Windfarms jointly owned and consented Te Rere Hau wind farm near Palmerston North confirms that not only is green energy gaining traction but that our unique Windflow 500 turbine has gained the support and confidence of critical institutional investors. The past few months have witnessed growing acceptance of the Windflow 500's proven performance, low visual impact and cost effectiveness over imported European designs."

Key points:

Windflow Technology currently has a 29% shareholding in NZ Windfarms Ltd.

This shareholding will drop to 3.6% once the new shares are allocated.

Vector Limited has signalled its intention to become a cornerstone shareholder in NZ Windfarms by subscribing for 15,704 000 shares in the issue which will give it a 19.99 percent stake in the company once the offer is completed.

Windflow Technology intends to support the proposed resolutions to approve the share offer and Vector cornerstone arrangement at the upcoming NZ Windfarms Special General Meeting to be held on Monday May 28 2007 in Christchurch.
Windflow Technology is continuing to expand its manufacturing capabilities in order to complete the remaining 92 Te Rere Hau turbines scheduled for delivery over the next 18 months.

For further information:
Jane Arnott Mobile: 0274 715 785
jane@38degrees.co.nz