CWP Clipper Reg S

RNS Number:1510D
Clipper Windpower PLC
03 September 2007

                          CLIPPER WINDPOWER PLC UPDATE



Clipper Windpower Plc ("Clipper") is issuing this update regarding recent
developments in turbine manufacturing and assembly and the company's wind
development portfolio.



Turbine Manufacturing and Assembly

Further to Clipper's 31 July 2007 announcement, the program to upgrade Liberty's
high speed pinion cartridges has now been successfully implemented.  However,
subsequent analysis and testing utilizing Clipper's newly commissioned 2.5 MW
drivetrain test facility in Cedar Rapids have revealed a supplier quality
deficiency in the drivetrain's secondary stage, which could affect the
component's operating life.



Clipper's testing and analysis, supported by independent consultants, confirms
that the quality deficiencies are not related to turbine design, specifications,
or the Cedar Rapids assembly process, but attributable to the component
suppliers' manufacturing processes.  Clipper's quality teams are working closely
with its suppliers to implement upgraded machining and quality assurance
standards and to accelerate their delivery capacities based on the manufacturing
upgrades.



While the flow of key turbine components from suppliers including blades, bases,
hubs, controls, etc., and respective assembly activities have generally tracked
production plans for the year, drivetrain assemblies have temporarily slowed
turbine shipments as described above. Clipper has assembled 83 drivetrains
year-to-date as of 30 August, including 57 turbines installed at customer
project sites.  The Company is shipping turbines with drivetrains qualified
through the drivetrain test facility and subject to the advanced quality control
discipline now in place. Turbine shipments should increase as these advanced
manufacturing, assembly and testing processes become systematized for higher
yields.



Clipper is also testing all of the turbines assembled prior to the newly
established upgraded quality testing protocol and is implementing specific
remediation action as required.  Field assessment currently underway indicates
that a number of the previously installed turbines may be affected. The expected
cost for remediation is in the range of $10 to $15 million, to be incurred over
the next 6-12 months.  Suppliers' deliveries have been temporarily slowed as
their manufacturing and quality processes are upgraded.  These component delays
could result in a limited amount of turbine delivery delay damages, and Clipper
is coordinating with customers to modify delivery schedules.



Our current estimate for 2007 turbine shipments will be reduced to a range of
125 to 145 turbines.  Clipper expects production shortfalls in 2007 will be made
up in 2008 to meet cumulative firm order commitments through next year as
previously guided.  Completion of the Endeavor project is now planned for the
fourth quarter 2007, with the possibility of some remediation work continuing
into 2008.



Because this does not affect turbine production beyond the current retrofits
required, Clipper is continuing to work with customers on orders for 2009-2010.



James G.P. Dehlsen, Clipper's Chairman and Chief Executive Officer said:  "Our
confidence in the design of the Liberty turbine is undiminished; we have
emphasized repeatedly that the principal risk to execution at this stage rests
with our suppliers delivering on their commitments for both timeliness and
quality.  We are demonstrating that our quality specifications can be achieved
with the turbines we are currently shipping.  While the newly imposed quality
process adds measurably to the near-term workload, it also establishes greater
turbine reliability that will serve us well as we continue to expand future
production. Also, I'm pleased to say that we have had positive comments from our
customers on our responsiveness to the situation and the level of diligence that
has gone into the remediation program. This should bode well for future
business."



Wind Development Portfolio



Clipper is in advanced stage negotiations with an experienced wind project
developer to combine the wind resource portfolios of the two companies, and to
develop an appropriate financial structure to accelerate the development of the
portfolio projects.  The transaction is expected to deepen the management team
dedicated to the development business and broaden the geographic diversity of
the portfolio.  The Company expects to make a further announcement on this
subject within the next two weeks.



Conference Call

Clipper's management will host a conference call to discuss the company's
developments today at 9:00 am (GMT). To join this call, please dial +44 (0)20
7138 0833 (Listen only)



For further information please contact:



Investors



Isabel Lutgendorf

Investor Relations Director

+44 (0)20 7820 1078



Financial Press



Patrick d'Ancona

M:Communications

+44 (0)20 7153 1547




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

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