Completion of Controlled Market Entry phase

Energetix Group plc

("Energetix" or "the Group")

Completion of Controlled Market Entry phase

Energetix Group plc, (AIM: EGX), the developer and provider of energy efficient products and retail energy services, announces that it has been informed by the MRA Entry Process Board (MEPB) that it has formally approved the lifting of the operating conditions applied to Flow Energy during the Controlled Market Entry ("CME") phase.

Flow Energy is now free to supply customers with electricity and gas without restriction having successfully tested the processes and IT systems to ensure they comply with the electricity industry processes and electronic systems. It is expected that Flow Energy will begin marketing to customers from April 2013.

The successful completion of the CME phase is one of the most significant milestones achieved since the formation of the energy supply business and allows Flow Energy to supply customers immediately. This also allows Flow Energy to build up a customer base earlier than originally expected and ahead of the launch of the Flow boiler. The customer base can then be targeted for future boiler sales.

Tony Stiff, Managing Director of Flow Energy, said, "This is certainly the most significant achievement of the energy supply business to date. The completion of the Controlled Market Entry phase proves that we have the ability to build and operate a successful energy supply business and allows us to sell directly to customers. We believe this is an excellent time for an innovative energy supplier to enter the market, particularly with many customers looking for a fresh, competitive and customer-focussed approach from their supplier.

"The lifting of our restrictions will allow us to build a strong awareness of the Flow brand and offer customers a genuine alternative to the major energy suppliers as well as access to one of the UK's first commercially available microCHP boilers."

For further information please contact:

About Energetix Group plc

Energetix Group plc is a developer of cost-effective products to meet the growing global demand for alternative efficient energy. Currently Energetix has two subsidiary businesses:

Flow - microCHP energy generation and retail electricity & gas

Pnu Power - compressed air back-up power for the protection of essential systems

In addition, Energetix has a c.25.7% stake in VPhase plc, an energy efficiency business created by Energetix and subsequently spun out in 2010. VPhase is now a standalone independently funded commercial venture.

With all technology development now completed Energetix is well positioned as it moves to the commercialisation stage of its corporate development.

Flow (formerly Genlec and Kingston Energy) - www.freeflow.uk.com

Flow Products has developed a highly efficient, compact and light weight, wall mounted microCHP (Combined Heat and Power) appliance known as the Flow Boiler (formerly the Kingston Boiler). The Flow Boiler is specifically designed to generate 1kW of electrical power. The Flow Boiler therefore has an inherent low total cost of ownership (initial outlay plus maintenance) and has already demonstrated industry leading payback cycles which many analysts believe is the key to unlocking this significant market opportunity.

Flow Energy is a unique dual fuel energy company, which will provide free microCHP boilers to its customers in return for a commitment to buy gas and electricity, with a price promise that energy prices will not exceed those of the major energy suppliers.

Pnu Power

Pnu Power focuses on the provision of compressed air back-up power which can ensure an uninterruptible power supply for critical systems, particularly for the telecoms, data centre and power transmission markets. Pnu Power range has been extended to include the DC100 product that can now meet the demand of the rapidly growing Green Data Centre market, providing a low carbon alternative to flywheels. Pnu Power has been successful in achieving repeat trial sales and is now poised to move out of the trial sales phase and into full volume commercial sales.

Energetix Group joined AIM in August 2006. The Group and its subsidiaries and associates are based near Chester, NW England and Ipswich, Suffolk.