AccelRate Power Systems Inc.

AccelRate Power Systems Inc.

May 31, 2006 16:05 ET

AccelRate Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2006) - AccelRate Power Systems (TSX VENTURE:APS)(FWB:KCG), the technology leader in "high-speed" battery chargers, announced today that it has arranged to sell 850,000 Units by way of non-brokered private placement at the price of $0.50 per Unit, to raise gross proceeds of approximately $425,000. Each Unit will consist of one common share and one non-transferable share purchase warrant. Each warrant will be exercisable to acquire one additional common share of the Company for $0.60 for one year after closing.

Finder's fees will be payable in connection with a portion of the private placement in accordance with Policies of the TSX Venture Exchange. No "control persons" (as defined in Policy 4.1 of the TSX Venture Exchange) or new insiders will be created as a result of the private placement.

In light of slower revenue growth than originally anticipated, due to delays in: manufacturing ramp-up; customer purchase decisions due to extended testing; signing of new distributors; and orders in the Canadian market resulting from new products being developed specifically for that region, proceeds from this private placement will be required for working capital.

"At this time, we require an infusion of capital to provide AccelRate with the working capital needed to operate its business, launch new products and execute its sales and marketing efforts," stated Reimar Koch, President and Chief Executive Officer of AccelRate Power Systems.

The private placement is subject to acceptance of the TSX Venture Exchange.

AccelRate's proprietary charging technology functions effectively with batteries of all conventional chemistries and sizes in industrial, portable, power tool, military and transportation applications. AccelRate's technology provides customers with up to 80% decreased charging time, increased battery lifetime due to improved heat management, and decreased energy use. AccelRate® SC "High-Speed" battery chargers are commercially available today for the motive power market.

AccelRate Power Systems is headquartered in Vancouver, BC. AccelRate's shares trade on the TSX Venture Exchange (symbol APS), and on the Frankfurt Exchange (symbol KCG).


Reimar Koch, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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