ZBB Energy Corporation Announces Results of Internal Investigation

CEO Resigns from Board, Koeppe Named Interim CEO
MILWAUKEE--(Business Wire)--
ZBB Energy Corporation (NYSE AMEX: ZBB), a leading innovator in energy storage
technology, announced today that as a result of an internal investigation
overseen by the company`s Audit Committee, Robert Parry, who previously
announced his intention to retire as the company`s president and chief executive
officer, has agreed to resign as a member of the company`s Board of Directors
effective October 31, 2009. The company and Mr. Parry have reached an agreement
to address a problem regarding the company`s tax classification of Mr. Parry`s
employment status and related withholding obligations in a manner that minimizes
ZBB Energy`s financial exposure.

The company also announced that Paul Koeppe, who currently serves as an
independent member of the Board of Directors, has been appointed as ZBB Energy`s
interim chief executive officer effective November 2, 2009. Mr. Koeppe has
extensive management experience. He was president, chief executive officer and
founder of Superconductivity, Inc., a manufacturer of superconducting magnetic
energy storage systems from 1988 to 1997, when it was acquired by American
Superconductor, an electricity solutions company. Mr. Koeppe then served as
executive vice president of strategic planning for American Superconductor until
his retirement in 2001. From 1993 to 1995, he was acting chief executive officer
and chairman of the executive committee of the board of directors of Best Power,
Inc., a supplier of uninterruptible power supply equipment. Mr. Koeppe currently
serves as a member of the board of directors of Incontact, a company
specializing in the development and marketing of contact center software.

"We are taking all necessary actions to resolve the matter and to strengthen the
company`s internal controls on a going-forward basis," said company Chairman
Bill Mundell. "We do not believe that the potential obligations identified in
the internal investigation will have a material impact on the company`s
financial statements. We are also pleased that Paul Koeppe has agreed to
undertake the role of chief executive officer on an interim basis and we are
confident that Paul`s leadership will help the company move forward and play a
major role in addressing global energy issues."

In light of the above matters, ZBB Energy announced the adjournment of its 2009
Annual Meeting of Shareholders originally scheduled to be held on November 4,
2009. The adjourned meeting will be held on November 16, 2009.

About ZBB Energy Corporation

ZBB Energy Corporation (NYSE AMEX: ZBB) 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 also located in Perth, Western
Australia.

Safe Harbor

Except for the historical information contained herein, the matters set forth in
this press release, including the description of the company and the anticipated
effects of the internal investigation, are forward-looking statements within the
"safe harbor" provision of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are subject to risk and uncertainties that may
cause actual results to differ materially, including historical volatility and
low trading volume of our stock, the risk and uncertainties inherent in the
early stages of growth companies, the company`s need to raise substantial
additional capital to proceed with its business, risks associated with
competitors, and other risks detailed from time to time in the company`s most
recent filings with the Securities and Exchange Commission. These
forward-looking statements speak only as of the date hereof. The company
disclaims any intent or obligation to update these forward-looking statements.

ZBB Energy Corporation
Helen Brown, 262-253-9800
Investor Relations
hbrown@zbbenergy.com

Copyright Business Wire 2009