Only ZBB's Agile Hybrid Storage Provides the Cost Effective Versatility Required to Meet the Changing Power and Energy Needs of Commercial and Industrial Building Owners

MILWAUKEE, WI - ZBB Energy Corporation (NYSE MKT: ZBB), a leading developer of innovative energy management systems solutions serving the utility and commercial and industrial (C&I) building markets, today announced the introduction of the Agile Hybrid Series, the first energy storage system optimized specifically for high performance, safety, longevity and ability to deliver both power and energy for all available behind-the-meter applications in commercial, industrial, multi-tenant and resort buildings.

Such buildings may have 10 or more different applications for energy storage, ranging from very short UPS type applications lasting seconds or minutes, to "rate or demand shift" type applications lasting several hours and backup applications for longer term outages. To perform all of these applications requires a storage system with versatility. The frequency at which the battery is discharged can range from numerous short cycles per day for applications such as frequency regulation or renewables firming, to a single extended cycle during the day as required for "smart export" or "peak shaving". Some storage technologies are good at short discharge, high frequency cycling and some are good at deep discharge, long duration cycling. There is no battery technology that is inherently optimized for performance, longevity and safety across all potential applications. The Agile Hybrid solution is simple, economical and safe and designed with the versatility required by C&I building owners.

ZBB's hybrid storage system pairs its latest C&I Flow Battery platform, the Agile Flow Battery, with the optimum complementary storage technologies required to meet any application or set of applications required for a particular building. The Agile Flow Battery recently achieved 3rd party certification from a leading, globally recognized test facility in China, validating that it achieved performance at or beyond design specifications and company claims.

"ZBB begins the design of nearly all our energy storage systems for the C&I market with the Agile Flow battery because it is ideally suited to applications that require discharge times greater than 2 hours. These applications form the backbone of most C&I opportunities where high financial return is possible, taking large amounts of energy from distributed generation or from the grid and moving it within the building from one time period to another, or delivering out to the grid when the utility needs it," said Brad Hansen, President and COO of ZBB Energy.

While many companies claim to have "behind the meter" storage products, the reality is that no single battery covers the breadth of applications. Every energy storage technology has a "sweet spot" for safety, performance and operational economics. The Agile Flow Battery is designed for, and is inherently best for longer discharge, high-energy applications, and ZBB then integrates complementary storage technology best suited for the balance of the applications, such as super-capacitors, flywheels or aqueous storage. Lithium ion battery storage is most frequently selected, as it is a good technology for renewable firming and other shorter discharge, high power applications. ZBB made news in January by announcing that it would ship and commission the first large commercial hybrid storage system consisting of flow batteries and a Li ion module to a multi-tenant residential building in Hawaii. The system, configured with (2) ZBB's EnerStore V3.3 flow batteries and Li ion has since been successfully commissioned and signed-off by the customer, providing validation of ZBB's system design and control capability.

"For the Agile Hybrid Li-ion, we work with the best lithium ion products for C&I applications, meaning those that are safe and have the right thermal and lifetime performance characteristics for a high reliability, high quality system," said Hansen. "We have the advantage of being able to pick and choose only the best of many available lithium ion battery alternatives. It is well known that some are better than others in protecting against thermal runaway and accelerated capacity erosion. By integrating the right lithium ion battery into the Agile Hybrid Li-ion, the lifetime and overall performance of the lithium ion battery is far greater than it would be if utilized on its own, running outside of its optimum operating window. With an Agile Hybrid Li-ion we deliver the most cost effective power and energy storage system for every possible C&I building application," concluded Mr. Hansen.

The challenge of concurrently performing multiple applications in the same C&I building energy management system is significant because each application has unique requirements and economic drivers, and can be either scheduled or intermittent. In the 20 year life of storage equipment, C&I building owners will experience a number of utility tariffs, reliability and security changes that may, on a moment's notice, render the storage equipment less economical and even obsolete. ZBB's proprietary "Auto-Sync" DC-Bus technology is foundational to the design of a simple, highly productive energy management system for any C&I opportunity, regardless of application or energy storage technology. Coupling this Auto-Sync technology with the Agile Hybrid provides the C&I building owner with the peace of mind that no matter what energy system changes occur, the ZBB Agile Hybrid Series can be re-optimized to maximize its cost effectiveness. ZBB is the first to hybridize large-scale hybrid energy storage systems for the C&I market, with multiple storage technologies working in harmony to accomplish different applications. The "Auto-Sync" DC-Bus enables any system in any building to be quickly optimized or expanded with additional distributed generation and/or new applications. Initial shipments of the Agile Hybrid Li-ion are expected to commence in the fourth quarter of this calendar year.

About ZBB Energy Corporation

ZBB Energy Corporation (NYSE MKT: ZBB) is an applications solutions company providing advanced energy management systems critical to the transition from a "coal-centric economy" to one reliant on an enormous expansion in renewable energy. Whether part of the grid power transmission and distribution network, or behind the meter in commercial, industrial and multi-tenant buildings, ZBB Energy brings vital power control and energy storage solutions to the most pressing problems caused by the incorporation of increasingly pervasive renewable energy generating assets. ZBB Energy also provides energy management systems for off-grid applications such as island or remote power. ZBB is a global corporation, with a joint venture in AnHui, China at Meineng Energy, as well as a strategic partnership with Lotte Chemical in South Korea. For more information, visit: www.zbbenergy.com.

Safe Harbor Statement

Certain statements made in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended that are intended to be covered by the "safe harbor" created by those sections. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, can generally be identified by the use of forward-looking terms such as "believe," "expect," "may," "will," "should," "could," "seek," "intend," "plan," "estimate," "anticipate" or other comparable terms. Forward-looking statements in this press release may address the following subjects among others: statements regarding the sufficiency of our capital resources, expected operating losses, expected revenues, expected expenses and our expectations concerning our business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, as a result of various factors including those risks and uncertainties described in the Risk Factors and in Management's Discussion and Analysis of Financial Condition and Results of Operations sections of our most recently filed Annual Report on Form 10-K and our subsequently filed Quarterly Reports on Form 10-Q. We urge you to consider those risks and uncertainties in evaluating our forward-looking statements. We caution readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Except as otherwise required by the federal securities laws, we disclaim any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in our expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.