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Windflow Technology Rights Issue Fully Subscribed


Friday 7 December 2007

Windflow Technology Rights Issue Fully Subscribed

Windflow Technology Ltd reports a successful first phase of a two-stage capital raising, with $5.04 million of new shares issued today under a fully subscribed renounceable rights issue.

“The directors are delighted with the very strong response from existing shareholders taking up their entitlement under the 1 for 4 rights issue priced at $3 per share,” said Mr Barrie Leay, Chairman of the Christchurch-based manufacturer.

“Those who were unable to take up the offer helped us to introduce new shareholders by selling their rights on the market, so we are pleased to complete the exercise with a slightly wider spread of shareholders.

Further new investors have been attracted by the placement of approximately 9.3% of the first stage issue, this completing a very successful exercise.”

”We informed shareholders attending briefings held in several cities that Windflow is making a transition to continuous manufacture of the Windflow 500 wind turbine from the summer of 2007-2008”.

“We have been able to also communicate to sharebrokers and media that, as a New Zealand manufacturer of wind turbine technology, Windflow has a very promising year ahead with a significant increase in gross revenue expected.”

“Our new Riccarton plant is commencing work on the 44 turbines that have been ordered for the Te Rere Hau wind farm project at Palmerston North,” said Windflow chief executive Mr Geoff Henderson. “Completion of the full installation, of 97 turbines, will enable Windflow to showcase its strengths as a competitive New Zealand manufacturer of wind turbine technology.”

Proceeds from the rights issue, in conjunction with other sources, will be used initially to provide Windflow with working capital, as well as fund the development of variants of the Windflow 500 wind turbine.

The proposed variants are a 60 Hertz variant for the US market, a variant suited to isolated networks and island economies that are currently reliant on diesel generation of electricity and a variant better suited to low wind speed environments.

The second stage of the capital raising will take place in September 2008, said Mr Leay. Each new share issued has attached one separately tradable option for an “Additional Share” which is exercisable on 30 September 2008 at a price of $3.30 per additional share.

The new shares issued under the rights issue are fully paid and rank equally with existing ordinary shares.

A total of 1,680,923 new shares were allocated today, taking the total number of shares on issue to 8,470,341. The new shares and the 2008 options will be tradable on the NZAX on Monday 10 December 2007.


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