SOURCE: Composite Technology Corporation

Composite Technology Corporation

January 22, 2010 08:05 ET

Composite Technology Announces Line Completion in Mexico

ACCC® Conductor Line in Ciudad del Carmen Energized

IRVINE, CA--(Marketwire - January 22, 2010) - Composite Technology Corporation (CTC) (OTCBB: CPTC) is pleased to announce the completion of the second ACCC® conductor transmission line in Mexico. The 22 kilometer Hawk "Ciudad del Carmen - 166 SLT 1002 Compensacion y Transmision Noreste-Sureste" line was installed in December and was recently successfully energized.

By selecting and installing ACCC® Hawk conductor, the Comision Federal de Electricidad (CFE) was able to upgrade the existing 115kV line to 230kV without modifying or replacing any of the 11 lattice steel towers spanning the Gulf of Mexico from the mainland to an island. Two key issues considered by the utility in this project were sag clearance for boating safety and corrosion due to the harsh marine environment. ACCC® conductor was selected due to the non-corrosive nature of the ACCC® composite core and to avoid the expensive cost and difficulty of replacing structures over the waterway, while increasing CFE's capacity with less sag at higher temperatures.

Energy-efficient ACCC® conductor has about 28% more aluminum in the same diameter and weight as the traditional ACSR conductor. This results in line losses being reduced by about one-third as compared to a similar ACSR. The greenhouse gases (GHG) emitted from the generation to supply those losses are eliminated. Replacing the ACSR Hawk conductor with ACCC® Hawk conductor for this line doubled the ampacity and should save an estimated 64,500 MWh of losses over a 30 year economic life. It should also reduce generation capacity requirements by 600kW and save the emission of over 40,000 metric tons of carbon dioxide over that 30 year period, equivalent to displacing 8,600 metric tons of coal in generation.

The successful installation of CFE's initial pilot of 19 kilometers of Drake ACCC® conductor in November 2008, demonstrated the ease of installation of ACCC® conductor and accessories. This repeat order and successful installation evidences CFE's progressive acceptance of ACCC® conductor and CTC Cable's ongoing commitment to CFE to provide high energy efficiency ACCC® conductor solutions for its aging transmission grid. When asked what type of applications for which CFE will consider ACCC® conductor, Xavier Sanchez, the Project Manager/Transmission Engineer of CFE, stated, "There are plans in the near future under the same applications that we used on this transmission line -- for urban projects where the priority is to maintain the electrical spacing without interference of communication lines in small towns and villages."

John Brewster, President of CTC Cable, commented, "After almost two years of study and preparation, we are pleased with the successful completion of the Carmen project. We are optimistic about the prospects for the use of ACCC® conductors in Mexico and we look forward to continued cooperation with CFE and COBRA."

Jordana Electric Inc. administered the order, and installation was completed by COBRA under supervision of CTC Cable.

About CFE:

Comision Federal de Electricidad (CFE) is a decentralized public entity of the Mexican Federal Government created by decree of the legislative branch of the Mexican Congress in 1937. CFE mainly renders public utility electric energy service throughout Mexico, which consists of generating, conveying, transforming, distributing and supplying electric energy, as well as planning and carrying out all the projects, installations and works required by the national electricity system with respect to planning, execution, operation and maintenance, with the applicable participation of independent energy producers. CFE operates through thirteen regional branches.

About COBRA:

Founded in 1944, COBRA is active in the service sector and holds leadership positions in the following: distribution networks on water and energy power, telecommunications, railways, industrial systems, energy projects, and offering specialized engineering services for operation, installation and maintenance.

The prestige reached by COBRA in its 60 years of life, is based on the work and commitment with its clients. Likewise, the rigorous observation of environmental regulations and safety of the work performed have been priority objectives of the company. Our clients include producers and distributors of electricity, gas and water, operators of telecommunications, the auto industry, shipping companies, airways, road and railroads, large shopping centers and distribution warehouses and public agencies of local, autonomous, and state environment.

COBRA human resources are distributed in a wide network of 200 branches in Spain and 60 abroad, forming a team of 23,600 highly skilled professionals. Of these, 11,600 are distributed in America, Europe, Africa, and Asia.

About CTC:

Composite Technology Corporation, based in Irvine, California, USA, develops, manufactures and sells innovative, high performance, energy efficient electrical transmission conductors through its subsidiary, CTC Cable Corporation. CTC Cable produces composite core rod for use in its patented high efficiency ACCC® conductors, which are used in overhead electrical transmission and distribution lines. ACCC® conductors perform with less line losses when compared to similar diameter conventional conductors and therefore enable power generators to reduce the amount of generation while still delivering the same power to customers. ACCC® conductors also enable grid operators to reduce blackouts and brownouts by providing reserve electrical capacity, since they can be operated at higher temperatures without significant thermal line sag. The performance and longevity of CTC's ACCC® conductor technology has been independently verified by certifying agencies, test centers and power grids around the world and have consistently demonstrated significant savings in upgrade capital costs and operating expenses when substituted for traditional conductors in reconductoring upgrades as well as new line construction. CTC Cable delivers ACCC® core to licensed qualified conductor manufacturers worldwide for ACCC® conductor production and sale into local markets. Over 9000 kilometers of ACCC® conductor have been installed on five continents. ACCC® is a registered trademark of CTC Cable Corporation.

For further information, visit our website: or contact Investor Relations, James Carswell, +1-949-428-8500.

This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (the "Company"). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, resolution of pending and threatened litigation matters involving CTC or its subsidiaries, resolution of disputes with CTC's or subsidiaries' creditors competition with larger companies, development of and demand for a new technology, general economic conditions, the availability of funds for capital expenditure and financing in general by us and our customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company, including those that are found in the Company's Annual Report filed with the SEC on Form 10-K/A for fiscal year ended September 30, 2009 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.

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