MicroCHP supply contracts

Energetix Group Plc

("Energetix" or the "Company")

MicroCHP supply contracts

36,000 customer accounts reached

Energetix Group plc (AIM: EGX), which develops and commercialises alternative and efficient energy products, announces that it has today signed two key supply contracts, the first with Eaton-Williams Holdings Limited, the second with Malvern Boilers Limited, for the production of its Flow microCHP gas boiler. The Group also announces that following the successful launch and subsequent expansion of the Flow Energy business it has now achieved its planned target of 36,000 customer accounts.

Confirmation of these key manufacturing partners, as well as the timetable for the first domestic installations of production units, represents another significant positive milestone for the Group.

The Group now intends to manufacture 100 Flow microCHP production units for domestic installation during the winter, under a pilot programme to validate the reliability of the volume production unit.

The initial 100 Flow microCHP boiler units for winter trial will be manufactured to production standard by Malvern Boilers Ltd. Malvern Boilers was set up in 1991 to produce domestic gas condensing boilers for both Malvern and Servowarm, up to the end of 2007. During that period it produced more than eighteen thousand Condensing Boilers that were installed and saving energy in UK homes. Malvern Boilers now concentrates on the commercial sector and provides a service to design, obtain approval for and produce commercial water heating appliances.

Energetix confirms that the crucial electricity-generating power module, which is housed in the Flow microCHP unit, will be manufactured in the UK by Eaton-Williams Ltd. Eaton-Williams was formed in 1936 and became part of Nortek Inc., USA. Today, its air conditioning, air handling, air distribution process cooling and humidification solutions are at the forefront of air conditioning and cooling developments. Eaton-Williams will manufacture the power module for the winter trial of the first 100 production units but it will also handle the planned volume production of the power module in 2014.

Tony Stiff, Group CEO and Managing Director of Flow Energy, said, "The launch of our energy business went smoothly and hitting our target of 36,000 customer accounts came even sooner than we expected. We're extremely pleased with consumer reaction to our brand and offer.

"Putting in place two of our manufacturing partners, particularly Eaton-Williams, who are making the crucial power module and will do so at volume next year, marks a clear and significant step forwards for the Company's potentially market-changing microCHP gas boiler."