SOURCE: Composite Technology Corporation

August 12, 2008 08:05 ET

Composite Technology Inks Turbine Deal in Canada

Energy Farming Ontario Contract Calls for Advanced Turbines for 2009

IRVINE, CA--(Marketwire - August 12, 2008) - Composite Technology Corporation (CTC) (OTCBB: CPTC) is pleased to announce that its DeWind subsidiary has signed an agreement for the sale of ten advanced DeWind D9 two megawatt wind turbines to Energy Farming Ontario, LLC. The D9 turbine is the advanced version of the D8.2 synchronous power turbine, which incorporates a 90 meter rotor for greater energy capture.

The contract is valued in excess of $23 million with scheduled delivery of the turbines set for late 2009. The contract provides for delivery of ten nacelles and blade sets. Energy Farming Ontario, a part of the Seeba-Energy Farming Group, will design 105m Seeba-lattice type towers to boost economics further. Energy Farming Ontario will deploy the turbines in Ontario, Canada, and has several large scale wind development projects underway. This is the first of several phases to be built out in Canada.

"We are very pleased to be selected by Energy Farming Ontario for this site. This region is very attractive for wind power and we believe our larger rotor turbine will be an excellent generator for the conditions in Ontario. The 90 meter rotor D9 turbine is in development at DeWind and will be ready for serial production in the second half of 2009. The D9 incorporates and optimizes all of the features of the groundbreaking D8.2 80 meter rotor turbine, including the unique Voith WinDrive®," commented Marv Sepe, President of DeWind and Chief Operating Officer of CTC.

"Typical inland sites require two things, (i) a large 90m rotor such as the Dewind D9, and (ii) a tall Seeba-tower to harvest the winds. We have 10 years of experience with our lattice type Seeba-towers, and we will now design one for the Dewind D9 wind turbine," comments Thomas Tschiesche, President of the Seeba-Energy Farming Group.

About Energy Farming Ontario, LLC:

Energy Farming Ontario (EFO) was formed in 2007 and is currently building a wind farm portfolio for construction in Canada. EFO belongs to the Seeba-Energy Farming Group, based in Stemwede, Germany. The Seeba-Energy Farming Group develops, finances, constructs and operates wind farms and has successfully developed over 100 wind farms worldwide. As a specialty, Seeba has been designing tall lattice-type towers for more than 10 years with about 350 MW on Seeba-towers in operation. For further information, please visit our website at www.energyfarmingontario.com or www.seebaenergyfarming.de or contact us at info.ontario@energyfarming.com.

About CTC:

Composite Technology Corporation, based in Irvine, California, USA, develops, manufactures and sells innovative high performance electrical transmission and renewable energy generation wind turbines through its subsidiaries:

--  DeWind Inc. designs, produces, and sells the DeWind series of wind
    energy turbines, including the new 2 megawatt (MW) D8.2 model available in
    both 60Hz and 50Hz; the 2MW D8 model in 50Hz; and the 1.25MW D6 model in
    50Hz. The new D8.2 has been operating since early 2007 at Cuxhaven,
    Germany, and utilizes the advanced WinDrive® hydrodynamic torque
    converter developed by Voith AG in combination with a synchronous AC
    generator with high voltage output that is connected directly to the grid
    without the use of power conversion electronics. The first 60Hz D8.2 is now
    operating at Sweetwater, Texas, where it will initially be used for
    demonstration to North American customers. DeWind D8.2 turbines are now
    being assembled at TECO Westinghouse Motor Co., in Texas for our North and
    South American customers.
    
--  CTC Cable Corporation produces composite rod for use in its patented
    ACCC* (Aluminum Conductor Composite Core) conductors, which are "high
    efficiency conductors" for use in electrical transmission grid systems.
    ACCC conductors demonstrate less electricity line losses when compared with
    conventional conductors and when deployed in place of conventional
    conductors on existing systems, the higher efficiency of ACCC conductors
    enables power generators to reduce the amount of power they must generate
    while still delivering the same power to the customers.  They have also
    demonstrated significant savings in upgrade capital costs and operating
    expenses when substituted in grid systems for other conductors. ACCC
    conductors enable grid operators to reduce blackouts and brownouts,
    providing a 'reserve electrical capacity' by operating at higher
    temperatures without significant thermal sag of the lines. ACCC conductors
    are an innovative economical solution for reconductoring power lines,
    constructing new lines and crossing large spans. ACCC composite core is
    delivered to qualified conductor manufacturers worldwide for local ACCC
    conductor production and resale into local markets.
    

*ACCC is a trademark of CTC Cable Corporation

For further information visit our website: www.compositetechcorp.com.

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, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, the ability of the company to convert quotations and framework agreements into firm orders, our customers' fulfillment of payment obligations under the respective supply agreement, our ability to deliver reliable turbines on a timely basis, general economic conditions, the availability of funds for capital expenditure by customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to produce the turbines and acquire their components, 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 for fiscal year ended September 30, 2007 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.

Contact Information

  • Investor Relations Contact:
    James Carswell
    +1-949-428-8500