NZ Windfarms' confirm $75 million share issue

-Press Release

Tuesday 29th May 2007

NZ Windfarms' plans to raise $75 million to fund future development were formally approved by shareholders of the company at a Special General Meeting in Christchurch last night.

In ratifying the company's share issue, the shareholders also approved resolutions for Vector Limited to become a 19.99% cornerstone shareholder and for NZ Windfarms to transfer its listing to the main board of the New Zealand Stock Exchange.

NZ Windfarms' Chairman Derek Walker said the mood of the meeting was positive as shareholders gave the go ahead for the capital raising, which will take the company from a start-up wind farm developer to being a force in renewable electricity generation in New Zealand.

"Our shareholders - many of whom have been with NZ Windfarms since our float in 2005 - have recognised that this is a pivotal moment for the company. It means that, having demonstrated the technical capability of the Windflow Technology turbine through the launch of the Te Rere Hau wind farm, we can now move on to complete that project and into new developments."

The share offer opened on May 14 and closes on Friday (June 1).

The offer comprises 68,181,819 ordinary shares at an issue price of $1.10 per share, including the Vector shareholding and a Shareholder Priority Pool of 5,000,000 shares available to holders of NZ Windfarms shares on May 11. The remaining 47,477,819 shares have been allocated to institutional investors and NZX firms.

NZ Windfarms is a renewable electricity generator specialising in regional wind farm developments, partnering with local and regional stakeholders to develop sites that will supply electricity close to consumer demand.

The issue increases its share capital from $8 million to approximately $78 million, providing funding for the completion of the Te Rere Hau wind farm in the Manawatu and for other new wind farm developments.

Stage 1 of Te Rere Hau was opened last September. NZ Windfarms has a 50 percent interest in the Te Rere Hau joint venture, with the other 50 percent owned by international energy groups NP Power and Babcock & Brown.

NZ Windfarms listed on the AX Board of the NZX following an initial public offering in 2005 and will move its listing to the NZX Main Board following the share issue.

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