AccelRate Power Systems Inc.

AccelRate Power Systems Inc.

January 31, 2007 16:46 ET

AccelRate Power Systems Inc.: Short Term Loan Arranged With President and CEO

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2007) - AccelRate Power Systems Inc. (the "Company") (TSX VENTURE:APS)(FWB:KCG) has arranged for an additional $100,000 loan from the President and CEO of the Company (the "Loan"). The proceeds from the Loan will be used by the Company for general working capital purposes.

The Loan will have a maturity date of April 30, 2007, and the maturity date may be extended at the discretion of the lender. The Loan will bear interest at the rate of 10% per annum and will be secured, together with the other indebtedness of the Company to the lender, by a general security interest in all present and after acquired personal property of the Company. The Company will issue to the lender, as an incentive and bonus for making the Loan, 21,000 shares of the Company at the deemed price of $0.24 per share. The bonus shares will be subject to a four month hold period. The Loan will not be convertible.

The President of the Company has also extended the time for repayment of the $350,000 loan announced on November 8, 2006 from January 31, 2007 to April 30, 2007 at the interest rate of 10% per annum. The new loan will bring the total amount loaned to the Company by the President to $706,000.

The issuance of any bonus shares in accordance with these loan arrangements is subject to acceptance by the TSX Venture Exchange.

CASPAR KOCH, Chairman of the Board of Directors

This new release may contain forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors discussed in the management discussion and analysis section of our interim and most recent annual financial statement or other reports and filings with the TSX Venture Exchange and applicable Canadian securities regulations. We do not undertake any duty to update any forward-looking statements.

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

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