CWP Clipper Reg S

RNS Number:6670Q
Clipper Windpower PLC
25 March 2008


                                   
                                 TRADING UPDATE


   *Year to date turbine production tracking to plan; 73 drivetrains
    assembled as at 21 March 2008


   *$50 million private placing of 4,692,220 ordinary shares at a price of
    537.5p per share


   *Received non binding commitment letters based on a valuation for CAPGEN
    of $900 million


London, (UK), Carpinteria, CA (USA) - March 25, 2008 - 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 its operations.


Year-to-date 2008 production is tracking to plan, with 73 drivetrains assembled
at the Cedar Rapids plant as of 21 March 2008. In line with Clipper's annual
production plan, 34 of these drivetrains were assigned to the remediation
program announced in late 2007. Over half of the drivetrains requiring
remediation have now been completed. Drivetrain production is the pacing factor
for turbine production; thus drivetrains produced year-to-date are indicating
plant capacity utilization in the early 2008 target range of 20-30 turbines per
month. Production ramp up has been significant over the past two quarters, with
22 drivetrains completed in the first three weeks of March. Clipper expects this
trend to continue and reiterates production guidance of 311 turbines in 2008.


Clipper has a strong commitment to quality control and in December 2007 the
Company announced that it had initiated a blade reinforcement program to
increase blade design margins and ensure 20 year design life. Recent unusually
harsh winter weather at project sites required the Company to adapt field
procedures for extreme cold resulting in a delay of approximately four weeks to
remediation plan expectations. As a result, the Company expects to incur
additional remediation costs currently estimated in the range of $8 to $10
million. Substantial completion of the drivetrain remediation and blade
reinforcement program is still expected by Q308.


The Company previously announced that it expected a strain on working capital in
early 2008 due to 2007 losses, delay in completion of the 40-turbine turnkey
construction contract, and remediation program costs. In response, certain major
institutional shareholders have agreed to subscribe for 4,692,220 new shares at
537.5p per share, raising gross proceeds of �25.2 million (approximately $50
million). The issue of new shares is subject to approval by shareholders at a
General Meeting of the Company to be held in April. A Circular, containing the
notice of General Meeting, will be posted to shareholders following this
announcement. The Company is currently in receipt of signed irrevocable
commitments representing over 62% of Clipper's issued ordinary share capital to
vote in favor of the resolution to issue 4,692,220 new shares at the upcoming
General Meeting.


In addition, Clipper has arranged a $60 million bank-administered secured term
credit facility to be funded by a customer and has secured the performance of 
certain Clipper obligations in order to facilitate approximately $85 million of
pre-delivery turbine payments from a second customer. In conjunction with the
remediation program, these customers and Clipper have also agreed to
modifications to 2008 payment schedules.


Clipper has a growing order book, with cumulative firm orders of 2,063 MW
through 2011. To support its growth, the Company recognizes the importance of
strong supply chain management and production controls. To this effect, Clipper
is in discussions with private equity and strategic firms for collaboration on
strategic supply chain opportunities and other potential financing requirements.

Clipper Capital and Generation ("CAPGEN") has seen strong interest from both
strategic and financial investors in response to the previously announced
capital raising. Over the past weeks, the Company and Hemeretik, S.A., its
CAPGEN partner, have received non-binding commitment letters for investment
participations based on a valuation for CAPGEN at the $900 million level
(pre-capital raise). Clipper's share of CAPGEN prior to the sale of equity to
new investors is 72%. CAPGEN is pursuing commitments from additional investors,
and Clipper will continue to update the market on the progress of the CAPGEN
fundraising as reportable developments occur.

Preliminary results for the year to 31st Dec 2007 are expected to be announced
on 15 April 2008.


Forward Looking Statements

Statements contained in this press release, particularly those regarding the
possible or assumed future performance of the Company, industry growth or other
trend projections and any estimated company earnings are or may be forward
looking statements and as such involve risks and uncertainties. Any such
statements may be influenced by factors that could cause actual outcomes and
results to be materially different from those expressed or implied by these
statements.


This announcement is not an offer of any securities for sale.  The securities
have not been and will not be registered under the U.S. Securities Act of 1933,
as amended, and may not be offered or sold in the United States absent
registration or an exemption from registration, or unless the offer and sale is
made outside the United States in an offshore transaction meeting the
requirements of Rule 903 or 904 of Regulation S.


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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