CWP Clipper Reg S

RNS Number:3422K
Clipper Windpower PLC
20 December 2007




                     CLIPPER WINDPOWER PLC - TRADING UPDATE

London, (UK), Carpinteria, CA (USA) - December 20, 2007 - Clipper Windpower Plc
("Clipper"), a rapidly growing manufacturer of advanced wind turbines and
developer of wind energy projects, is issuing this update regarding recent
developments in turbine manufacturing and assembly.

As of 18 December, a total of 125 turbines were completed year-to-date at
Clipper's Cedar Rapids manufacturing and assembly facility.


As announced during our interim results on 27 September, production had been
affected by a supplier quality deficiency in Liberty's drivetrain secondary
stage. This deficiency was addressed and production has rebounded to higher
monthly levels as the company continues to ship turbines qualified through the
new drivetrain test facility and advanced quality control processes. An
assessment of 57 turbines installed at customer project sites prior to
implementation of the upgraded quality control processes is progressing and
continues to be expected in early 2008.


Based on observations made during initial operation of the Clipper fleet and
on-going rotor blade validation testing, Clipper will be implementing a rotor
blade reinforcement program to increase blade design margins and ensure 20 year
design life. This activity is being coordinated with the drivetrain remediation
program for efficient utilization of field crews and equipment to minimize
costs. The cost impact from the blade reinforcement program is currently
estimated in the range of $15 million; however, this amount includes some
overlap with drivetrain remediation costs and expected delay penalties
previously announced due to the coordination of the two activities. A further
update on overall remediation and reinforcement costs will be provided in
January.


The company expects that 2008 production will meet next year's firm orders
totaling 311 turbines, with shipments above that figure dependent on the
drivetrain remediation program, component availability, and any potential
modification to timing of customer deliveries.


As identified at the time of the interims, revenue recognition on Clipper's two
construction related contracts, a combined total of 60 turbines, would not yield
a contribution to earnings. The company also indicated that due to a time lag
between production and commissioning and depending on the customers' site
readiness and construction schedules, revenue would not be recognized on an
estimated 4-6 weeks of 2007 production (approximately 30 turbines). Based on a
2007 production of 125 turbines, the company indicated this would leave sales of
approximately 35 turbines with a contribution to earnings. Due to delays in
commissioning activities caused by a range of factors, such as a customer's
updated grid interconnection schedule and Clipper's expected blade reinforcement
schedule, it is now likely that revenue and associated gross profit recognition
for these remaining turbines will be shifted into 2008. Substantial milestone
payments have already been received from customers for these 35 turbines so the
delayed revenue recognition will have minimal cash flow impact.


The CAPGEN financing initiative with potential financial and strategic investors
continues.


The company has dealt with turbine and production "teething" issues
expeditiously and with thoroughness, strengthening the relationship with
existing customers. Major new customers are in discussion with Clipper and, in
this regard, we are pleased to announce that AES, a global independent power
producer and developer, has placed a firm order for 50 Liberty turbines for 2009
delivery.


Clipper will provide a further update to the market on January 24, 2008,
including progress on remediation plans and related costs.


Conference Call


Clipper's management will host a conference call to discuss the company's
developments today at 9:00 am (UK time). To join this call, please dial 
+44 (0) 20 7806 1950 (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

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