New Zealand Windfarms Ltd              $1.20           September 2006

Ticker:  NWF

Website: www.nzwindfarms.co.nz

CEO: Chris Freear

Chairman: Derek N Walker

Annual meeting date: TBC - due September 2007

Shares.net.nz comment

New Zealand Windfarms' (NWF) first wind farm is situated some 30 minutes from Palmerston North in the Tararua ranges, and will have 97 turbines when completed in three years.

Three years is a relatively short time to establish a utility type operation. On completion the Te Rere Hau wind farm will be capable of generating enough power to meet the energy requirements for 18,000 homes.

The first stage of the development comprising the construction of five turbines has been successfully completed and is currently supplying power to the national grid.

NWF will need to raise further capital - in the order of $5 million to $8 million - to complete the Te Rere Hau project. The capital raising should be assisted by the recently announced 50/50 joint venture with Babcock & Brown and National Power.

Financial comment

Investors will have to wait until 2009 before seeing a dividend from NZ Windfarms with the investment statement forecasting a dividend of $0.05 a share which represents a gross yield of 6.2% and 7.45% for 2010.

The company will write off a similar amount in depreciation and amortisation which shows the strength of the cash flow.

NWF is an interesting investment for longer term investors.

Company comments on its latest result

"The coming year will be one of consolidation and expansion," the company writes in its 05/06 annual report. "Consolidation - of the gains that have been made in governance and operational structures of the Company. Expansion - of our investment in the Te Rere Hau wind farm and development activities associated with other potential wind farm sites. In order to achieve these goals it will be necessary to raise additional capital, an activity which is currently timetabled for the fourth quarter of 2006."

Latest financial result (full year)

Audited figures for the year to March 31, 2006

(Released 14 August, 2006 - figures in $NZ'000)

                                                This year            Previous year               Change

Trading revenue                        -                       -

Other revenue                           12                    -

Total Operating Revenue             12                    -

Pretax surplus/(deficit)            (400)                (119)

Tax                                          2                      -

Net profit/(loss)                        (398)                (119)                            -234%

Recent milestones

September 2006    NWF's Te Rere Hau windfarm, the first to use New Zealand made wind turbines, is officially opened by Prime Minister Helen Clark. Stage I of Te Rere Hau Wind Farm, comprising five turbines, is now exporting electricity into the regional grid. When fully built in three years, the farm will have 97 turbines capable of generating enough power for 18,000 homes.

August 2006                NWF, NP Power Pty Limited and Babcock & Brown Windpower Pty Limited reach agreement on their joint venture arrangement for the Te Rere Hau wind farm, as signalled in the NWF 2005 prospectus. (The JV is subsequently ratified by NWF shareholders at the company's September AGM.) NP Power and Babcock & Brown Windpower signed a memorandum of understanding

with NWF on a joint venture in 2005, and have since conducted due diligence. Confirmation of the joint venture means NP Power and Babcock & Brown Windpower will share a 50% interest in the project to date, with NWF retaining the other 50 percent. The project will continue to be managed by NWF.

December 2005    NWF begins trading on the NZAX market following the issuing of 2.8 million ordinary shares.

Company activities

NZ Windfarms Limited (NWF) is a power generation company that sells sustainably generated electricity from wind turbines. We are currently developing the first of what will be a portfolio of wind farms that we will own and operate throughout New Zealand.

NWF is in the first stages of establishing itself as a wind turbine based electricity generation firm. As part of its core activities, it proposes to identify economically feasible wind farm sites, develop them and sell the resultant electricity that is generated. Since its incorporation NWF has been preparing to establish its first wind farm.

It has secured an ideal wind farm site in the Manawatu at the Te Rere Hau site which lies on the western slopes and at the north end of the Tararua Ranges, within the area of the Palmerston North City Council.