ZBB Energy Corporation Announces Dissolution of ZBB China Pty Ltd Joint Venture

ZBB Energy Corporation announced that the co-operative joint venture agreement between China Century Capital Limited (formerly China Century Group Limited) (CCC) and ZBB was terminated by mutual agreement on October 2, 2008.

The effect of this termination is to cancel the exclusive manufacturing, marketing and distribution rights granted by ZBB to the joint venture company, ZBB China Pty Ltd, in which ZBB held a 49% interest and CCC held a 51% interest. No payment was made by either party for the termination and each party has released the other from any claims.

ZBB now regains 100% of its rights in the Peoples Republic of China, Hong Kong and Macau. Rob Parry, Chief Executive Officer, commented “this was an appropriate decision for ZBB at this time to reclaim our ownership of this important region going forward. It should also be noted that this does not impact our involvement in the Future House USA project in Beijing.”

ZBB Energy Corporation provides clean energy storage solutions based on proprietary zinc rechargeable energy storage technology that addresses requirements in multiple markets such as alternative energy applications, large electrical utilities and green residential and commercial architecture. A developer and manufacturer of its modular, transportable and environmentally friendly Zinc Energy Storage Systems (“ZESS”), ZBB Energy was founded in 1998 and is headquartered in Wisconsin with offices located in Perth, Australia.