NZ Windfarms announces arrangement with Vector

NZ Windfarms Limited Press Release 27 April 2007

NZ Windfarms announces cornerstone arrangement with Vector Limited

NZ Windfarms has today announced that it intends to undertake an issue of shares raising $75 million to meet future funding requirements. The company has reached a conditional arrangement with Vector Limited that will result in Vector becoming a cornerstone shareholder by subscribing to shares in the issue.

The full terms of the share issue will be announced when a prospectus has been registered, in approximately two weeks. Both the issue and the cornerstone shareholding are subject to existing shareholder approval at a special general meeting, likely to take place in late May or early June. The issue will include a priority pool for existing NZ Windfarms shareholders resident in New Zealand. ABN AMRO Craigs and ABN AMRO Rothschild are advising NZ Windfarms in preparation for the issue.

The Chairman of NZ Windfarms, Mr Derek Walker, said the issue and the relationship with Vector would provide a significant boost to NZ Windfarms’ development programme. “With this funding in place, and a cornerstone shareholder of Vector’s stature, we will be able to pursue development options without delay. “Our initial priorities will be to complete the Te Rere Hau wind farm, in which we have a 50 percent interest, and to progress the investigation and development of other sites already identified.”

Under the agreement, Vector will take a shareholding of 19.99 percent in NZ Windfarms, and will be able to nominate two directors to join the NZ Windfarms board.

Vector is New Zealand’s leading multi-utility infrastructure owner and manager, with a range of energy and technology assets. Vector is listed on the New Zealand Stock Exchange, and its majority shareholder (75.1 percent) is the Auckland Energy Consumer Trust. The cornerstone shareholding in NZ Windfarms will be the first investment under Vector’s environmental energy strategy.

NZ Windfarms is a renewable electricity generator specialising in wind farm developments. Stage 1 of its first wind farm, Te Rere Hau in the Manawatu region of New Zealand, was opened in September 2006. Te Rere Hau uses the New Zealand designed and manufactured Windflow 500 turbines, which allow easy connection to the transmission and distribution networks.

In August 2006, NZ Windfarms announced the establishment of a joint venture with NP Power and Babcock and Brown Windpower for ownership of Te Rere Hau. NZ Windfarms is progressing several further wind farm development opportunities – typically designed to supply electricity close to consumer demand and to present partnering opportunities with local and regional stakeholders. NZ Windfarms listed on the AX Board of the NZX following an initial public offering in 2005. It intends to move its listing to the NZX Main Board following the share issue. Media enquiries: Derek Walker Chairman, NZ Windfarms Limited

ENDS

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