ZBB Energy Corporation Adds Two U.S. Based Directors to Its Board; Manfred Birnbaum and William Mundell to Join Board Members.

MILWAUKEE -- ZBB Energy Corporation (ASX: ZBB) is pleased to announce that Mr. Manfred Birnbaum and Mr. William A. Mundell will be joining the Board of Directors, subject to the closing of ZBB's planned United States IPO.

Mr. Robert Parry, CEO of ZBB stated, "We have taken several steps to strengthen our position in the U.S. market. To further reflect our commitment to the U.S. business community, the Company is please to announce the addition of two internationally recognized businessmen, who will be the independent American members of our Board of Directors upon consummation of our IPO. We believe that the addition of Messrs Birnbaum and Mundell to our Board will provide ZBB with additional leadership and additional exposure to potential opportunities to grow our business."

About Mr. Birnbaum

Mr. Birnbaum is a management and business consultant specializing in the power generation and industrial business sectors. He spent 24 years with Westinghouse Electric Corporation in various technical and senior management positions and four years as chief executive officer of English Electric Corp., a wholly owned subsidiary of General Electric Company of England.

While at Westinghouse, Mr. Birnbaum played a leading role in developing the Westinghouse's nuclear business strategy and positioning in Europe; establishing joint venture companies in Brazil, Colombia and Korea to manufacture and market power generation equipment; and managing product marketing, phased manufacturing operations, licensing and technology transfers on a worldwide basis for power generation, fossil and nuclear products. In addition he reorganized the European businesses of Westinghouse's Electronics and Control Group (consisting of switchgear, power transformers, semiconductors, combustion and industrial controls) instituting performance and trend monitoring processes resulting in sales growth.

In four years as chief executive officer of English Electric Co., Mr. Birnbaum was instrumental in effecting a substantial increase in profitability through sales growth and the introduction of eight new product lines. He later participated in the formation of Gentec Corporation, which purchased six operating divisions from Westinghouse in 1986. As chief executive officer he successfully restructured these businesses (active in scheduled maintenance, service and construction management of utility, petrochemical and industrial installations).

For the past 12 years Mr. Birnbaum has worked as an independent management consultant for companies such as Westinghouse Electric Corporation, ABB-Asea Brown Boveri Inc., Siemens, Alstom, Duke Power, Foster Wheeler, Electronics Associates and Trinity- Fywheel Technology among others.

Mr. Birnbaum is a mechanical engineering graduate of the Polytechnic Institute (Brooklyn, New York) and earned a masters degree in electrical engineering from the University of Pennsylvania.

About Mr. Mundell

William Mundell is an international businessman with a recognized track record in the information and educational technology industries. Until recently, he was Chairman and CEO of Vidyah, a company founded out of Knowledge Universe to create a second generation of e-learning. During the same time he assumed responsibility for another Knowledge Universe controlled company, International Knowledge Management. Both companies experienced dramatic improvements in their operating performances under his tenure, and in both cases he created attractive exit options.

Previously, he was Chairman of Trade, Inc. a leading competitive intelligence company specializing in international trade information controlled by Bain Capital and Sutter Hill.

From 1989 through 1998, Mr. Mundell was with WEFA, serving first as President and later as President and Chief Executive Officer. WEFA, a well known economic forecasting authority, was founded in 1963 as Wharton Econometric Forecasting Associates by the Nobel Laureate economist Dr. Lawrence Klein. During his tenure, Mr. Mundell was instrumental in implementing major changes in both WEFA and the economic information industry in which it competes.

Mr. Mundell resides in Los Angeles, California and was adjunct professor at UCLA's Anderson Graduate School of Management, where he taught economics and finance. He is also very active within the Republican Party and most recently was Chairman for Californians for Fair Redistricting, a group he formed to pass Proposition 77, legislation relating to the redistricting methods used by the State of California.

Mr. Mundell received his undergraduate degree in Economics and Political Science at Carlton University in Canada where he was the recipient of the U.S. Ambassadors Award. He completed his graduate studies at Columbia University, earning an MBA in Finance and a Masters in International Economics and Public Finance.

We believe that Mr. Birnbaum and Mr. Mundell will bring to ZBB a wealth of energy and non energy related international business experience and increase our exposure to U.S. based business circles.

About ZBB Energy:

ZBB Energy Corporation develops and manufactures distributed energy storage solutions based upon the Company's proprietary zinc-bromine rechargeable electrical energy storage technology. The unique, modular construction of the Company's core 50 kWh product enables ZBB's battery to be sized and packaged as a fully customized, large format energy storage system. This scaleable, mobile system is ideally suited for a number of very large market applications.

Forward-Looking Statements

Certain information discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

Enquiries regarding this announcement should be directed to:

Robert Parry                  or           Geoffrey Hann
Chief Executive Officer                    Chief Financial Officer
ZBB Energy Corporation                     ZBB Energy Corporation
Phone: [phone]                     Phone: [phone]
Or ([phone]                      or ([phone]
Email: [e-mail]                Email: [e-mail]