wee sale

NWF
08/12/2008
JOINTV

REL: 1003 HRS NZ Windfarms Limited

JOINTV: NWF: NZ Windfarms Joint Venture Announcement

NZX Announcement

8 December 2008

For immediate Release

NZ Windfarms Limited today announced that its wholly owned subsidiary,
NZWL-TRH Limited, has reached an agreement with NPBB Pty Limited to purchase
NPBB's 50% interest in the Te Rere Hau Wind Farm joint venture for $20.1
million in cash.

The agreement is conditional upon NZ Windfarms passing a shareholders'
resolution approving the acquisition (or NZ Windfarms receiving a waiver of
the resolution requirement from NZX Regulation from Listing Rule 9.2.1), and
various consents being given on acceptable terms to NZ Windfarms and NPBB
from counterparties to material contracts to the Te Rere Hau joint venture.
The parties expect the conditions to be satisfied, and the acquisition to
complete, in the first quarter of 2009.

"This acquisition is a positive step forward in meeting our objective of
driving the Company's growth through the purchase of an asset on an excellent
site that is familiar and well advanced in construction. The acquisition
will enable NZ Windfarms to access 100% of the Te Rere Hau Wind Farm revenue
and for the Company to achieve a positive operational cashflow more rapidly."
said Derek Walker, Chairman of NZ Windfarms.

Mr Walker said "that the opportunity had recently arisen from a decision by
Babcock & Brown and NP Power, the shareholders of NPBB, to divest certain
assets".

The Te Rere Hau Wind Farm is in the process of developing a total of
ninety-seven 500kW wind turbines on the Te Rere Hau site providing an
installed capacity of 48.5 MW. The Te Rere Hau Wind Farm is situated on 243
hectares of land on the western slopes of the northern end of the Tararua
Ranges. Five turbines have been operating on the site since September 2006
and a further thirty turbines related to the Stage II development are
currently being erected and commissioned. Presently a total of 29 turbines
are in position, and the remaining six will be erected in the next two weeks.
11 turbines are fully operational and feeding into the new 33kV connection.
The other turbines will be progressively commissioned, with all 35 turbines
fully operational by January. The civil infrastructure (roading and
construction pads) for Stage III (a further 32 turbines) have been completed,
which will enable construction and installation of Stage III turbines to
commence early in the New Year.