Windflow Passes Major IEC Milestone

Dear Sir/Madam,

NZX STATEMENT

12 August 2009

Windflow Passes Major IEC Milestone

All of the documentation for IEC certification of the Windflow 500 turbine has been submitted to Lloyds Register, the certifying body based in the UK. The final document was lodged at the end of July for review by Lloyds Register, which is likely to take a few more months.

Windflow has provided its customer, NZ Windfarms, with regular reports on the progress towards this and on the minor design improvements made in order to meet the IEC requirements. There are no known issues to prevent certification of the latest version of the Windflow 500.

The five Stage 1 Windflow 500 turbines have been operating at NZ Windfarms' Te Rere Hau wind farm site near Palmerston North since September 2006 and in the following years NZ Windfarms placed orders for a further 92 turbines for this wind farm, knowing at the time of each order that the work required for IEC certification had not been completed. As a result the turbines installed at and under construction for Te Rere Hau are slightly different from the latest version submitted for certification.

The Windflow 500 turbines supplied and being supplied for the Te Rere Hau site are fit for purpose and Windflow Technology is working with NZ Windfarms to demonstrate that fact. More than 50 turbines have been commissioned at Te Rere Hau and they are meeting or exceeding their warranted availability and power output.

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