PowerSav Inc. Invests in Joint Venture Company to Enter China's Energy Storage Market

SHANGHAI, Aug. 30, 2011 /PRNewswire/ -- PowerSav Inc., a provider of new energy solutions to the China market, announced today it will invest in a joint venture company that will initially assemble, then fully manufacture intelligent, renewable energy power systems for sale on an exclusive basis in mainland China and on a non-exclusive basis in Hong Kong and Taiwan. The joint venture company products and technology will be from ZBB Energy Corporation (NYSE Amex: ZBB), a globally recognized leader in storage and power management solutions. The company will build a new state-of-the-art manufacturing center in WuHu City, Anhui Province that will begin operations in early 2012.

The joint venture partners comprising the "China JV Company" (Chinese name registration pending) include, ZBB-PowerSav Holdings, AnHui XinLong Electrical Company (XinLong Electrical) and WuHu Huarui Power Transmission & Transformation Engineering Company (WuHu Huarui).

ZBB and PowerSav have been working together since November 2010 to identify an optimal path and partnerships to enter the China market. More than 75 potential joint venture partners and 25 cities and governments were diligently screened to determine the ideal joint venture partners and a city and government very supportive of providing a location for "new energy" technology. XinLong Electrical and WuHu Huarui met every criteria established for the joint venture partners, and the city and government of WuHu, demonstrated their strong support by way of providing a host of incentives to locate in their city.

This joint venture enables PowerSav to enter the high growth China market with partners that can achieve a leadership position in what will likely become the largest market in the world for energy storage and power management solutions. The China market for the products and services from the joint venture company is estimated at more than $20B USD in size by 2020.

"The China market for energy storage and power management solutions is truly immense. Energy generation and distribution challenges that China faces are significant and present an outstanding opportunity for the products that will be produced and sold by the JV Company. The partners provide the leading technology, supply chain, manufacturing capability and market channels to enable the company to secure a significant share of the China market," said Brad Hansen, CEO and Managing Partner of PowerSav. "China is making major investments in wind and solar power and the Company's products will enable significant improvement in renewable energy system utilization and efficiency. The markets for energy storage systems for back-up power and for supplemental power during peak system loads exist now and will experience heavy growth for at least the remainder of the decade. Additionally, existing and future municipal and commercial building micro-grid and Smart Grid policies in China will create tremendous opportunity in the coming years. We are extremely pleased to be a part of the creation of this company."

Key terms of the joint venture include cash and technology capital investments of approximately $13.415 million. PowerSav invested capital will be made through ZBB-PowerSav Holdings Limited, a Hong Kong holding company formed by ZBB and PowerSav. PowerSav will own 40% of its equity interests. Investment from XinLong Electrical and WuHu Huarui will be made through a China holding company named Anhui Xindong Investment Management Limited.

The China JV Company will have an exclusive, royalty-free license to manufacture and sell ZBB's V3 battery (50kW) and PECC (up to 250kW) in Mainland China and a non-exclusive royalty-free license to manufacture and distribute the products in Hong Kong and Taiwan in the power management industry.

ZBB-PowerSav Holdings will provide certain management services to the China JV Company in exchange for a management services fee equal to five percent of net sales for the first five years and three percent of net sales for the subsequent three years.

The joint venture will be established upon governmental approvals from China, anticipated to be received in November 2011.

About PowerSav

PowerSav Incorporated provides vital "new energy" solutions to the China market, enabling the country to alter the energy mix to high-efficiency renewable sources and away from coal and oil. With breakthrough products in LED lighting, advanced energy storage and energy management systems, and "Smart Grid" infrastructure, PowerSav Inc. addresses many of the highest growth markets in China. The PowerSav products and services are critical to supporting the needs of China's rapidly growing population. For more information, visit www.powersav.net.

About ZBB Energy Corporation

ZBB Energy Corporation (NYSEAMEX: ZBB) provides advanced electrical power management platforms targeted at the growing global need for distributed renewable energy, energy efficiency, power quality, and grid modernization. ZBB and its power electronics subsidiary, Tier Electronics, LLC have developed a portfolio of intelligent power management platforms that directly integrate multiple renewable and conventional onsite generation sources with rechargeable Zinc-Bromide flow batteries and other storage technology. The company also offers advanced systems to directly connect wind and solar equipment to the grid and systems that can form various levels of micro-grids. Tier Electronics participates in the energy efficiency markets through their hybrid vehicle control systems, and power quality markets with their line of regulation solutions. Together, these platforms solve a wide range of electrical system challenges in global markets for utility, governmental, commercial, industrial and residential end customers. A developer and manufacturer of its modular, scalable and environmentally friendly power systems, ZBB Energy was founded in 1998 and is headquartered in Wisconsin, USA with offices also located in Perth, Western Australia. For more information, visit www.zbbenergy.com.

About XinLong Electrical

XinLong Electrical manufactures a wide range of power transmission and transformer equipment, including high and low-voltage power electronics, automation and control systems and power quality and conditioning systems. Publicly traded on the Shenzhen Stock Exchange, with Registered Capital of RMB165 million. From 22 locations throughout China, XinLong Electrical has more than 450 sales resources, aftermarket field support personnel, and project integration teams serving key market segments such as State Grid and South Grid electricity and power projects, transportation, telecommunications, industrial and commercial building and manufacturing. For more information, visit www.ah-xinlong.com.

About WuHu Huarui

Wuhu Huarui is a distinct leader in the design, engineering and deployment of UHV transmission systems, major business locate in more than 20 provinces throughout China. With 2010 revenue of $100 Million, WuHu Huarui specializes in electric power transmission and substation project construction, and has strong and long established relationships with both State Grid and South Grid companies. Wuhu Huarui has municipal engineering projects, covering power electricity, roads, railways, metro transport, shipbuilding and other segments. For more information, visit www.tte.sepcc.com/en.aspx.

SOURCE PowerSav Inc.