Windflow attracts Mighty River Power

30 JUNE 2008

Windflow attracts Mighty River Power

A leading New Zealand electricity generator, Mighty River Power Ltd has signed agreements to purchase a 19.95% cornerstone shareholding in the rapidly developing Christchurch listed technology company Windflow Technology Ltd.

The placement is subject to shareholder approval and is expected to raise in excess of $7 million and is based on the expected shareholder capital post the upcoming options exercise in September 2008.

Further, Mighty River Power has also signed a "turnkey" agreement with Windflow to build its first wind farm near Wellington using Windflow 500 wind turbines (subject to resource consent).

"It is a significant step forward in Windflow Technology's growth plans to be able to announce such a high profile New Zealand company as both a customer and shareholder," said Mr Geoff Henderson, Chief Executive of Windflow Technology.

Acting Mighty River Power Chief Executive William Meek said, "Windflow Technology is a progressive New Zealand company with exciting wind turbine technology - the smaller turbine is easily transportable and suited to New Zealand's terrain and wind conditions."

"Given the increasing value of wind as a renewable energy source, both domestically and internationally, the company has promising growth prospects," Mr Meek added.

Mr Henderson said the additional equity capital investment "will enable Windflow to accelerate its development of new variants of the Windflow 500 wind turbine and entry into new market sectors."

"We are very pleased to have the Windflow 500 wind turbine's technical and competitive advantages recognised in its selection by Mighty River Power as the basis of their entry into the exciting field of wind power," said Mr Henderson.

"This is the first Windflow wind farm project with Mighty River Power on a very high wind speed site, where the advanced technical features, low visual and environmental impact are strong attributes of the Windflow 500 Turbine."

Mighty River Power are currently investigating a number of other sites which may be suitable for the Windflow 500 wind turbine.

ENDS

© Scoop Media