Tonbridge Power Inc.
TSX VENTURE : TBZ

Tonbridge Power Inc.

September 16, 2009 15:27 ET

US Department of Energy Announces ARRA Funding for Tonbridge Power's MATL Project

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2009) - Tonbridge Power Inc. (TSX VENTURE:TBZ) ("Tonbridge Power" or the "Company"), 100% controlling shareholder of Montana Alberta Tie Ltd. ("MATL"), is pleased to receive a formal announcement that the Western Area Power Administration (Western), under the U.S. Department of Energy ("DOE"), will fund up to $161 million of the estimated $215 million MATL transmission line project. The project will use borrowing authority provided under the American Recovery and Reinvestment Act, ("ARRA").

The announcement made today in Washington by U.S. Department of Energy Secretary Steven Chu highlights the fact that the MATL project will create many near-term jobs in Montana, interconnect the electricity markets of Canada and the United States and contribute to the stability of the region's transmission system. The full text of the DOE's news release will be available at: www.tonbridgepower.com.

The financial arrangements between Tonbridge and Western, including the term and cost structure for project financing, are in the process of being finalized now. Execution of final documentation and funding are expected shortly and it is anticipated that construction will commence soon thereafter.

In keeping with the intent of the legislation, all contracts for construction, equipment and supplies for the transmission project will be awarded to U.S. contractors and suppliers, where available. All previously awarded contracts will remain intact.

Montana U.S. Senator Jon Tester, a long-time wind energy proponent applauded the announcement.

"This project is important to me for many reasons. It provides economic development to rural Montana, where I am from, and it takes advantage of an energy resource that rural Montana has plenty of-wind. I have been a wind energy advocate for many years, and I know the construction of MATL will help spur clean, green wind energy development. I believe that this project will quickly lead to just the kind of investment and economic activity we had in mind when we passed the Recovery Act."

Montana U.S. Senator Max Baucus said he was pleased that the federal government is moving to help the MATL project along.

"This transmission project will create good-paying jobs in Montana, increase the possibilities for clean wind energy development in our state and further stabilize the overall transmission system," Baucus said. "The MATL project is a good example of the innovative ways we can make clean energy a reality by working together."

"MATL is ready to go; all of the permits and significant subscriptions from wind developers are complete," emphasized Western's Administrator Tim Meeks. "Having these transmission customers in place provides the required long-term revenue stream needed to repay project construction and development costs. Because work can begin in the near term, good jobs can soon boost local economies, both with the construction of MATL and with development of new wind energy resources."

Added Gov. Brian Schweitzer: I offer my congratulations to Tonbridge on this important announcement. Transmission is the key to renewable energy development in Montana and the MATL line is the first of many projects we hope to see developed in Montana. With the nation's best wind resources, we have a critical role to play in the national energy crisis, but we can't do so without new and expanded transmission lines."

Johan van't Hof, Tonbridge's Chief Executive Officer added: "It's been a long, long road and we have many to thank for reaching this important milestone. We owe the Montana delegation heartfelt gratitude. Senators Baucus and Tester and Congressman Rehberg have been wonderful to work with, and along with the strong support of Governor Schweitzer, they are helping us secure financing at a critical time. The MATL project is well aligned with Western's Transmission Infrastructure Program.

In addition, all the Canadian and US regulatory authorities need to be commended for their hard work and commitment to helping us manage the many complicated issues that surround a project of this nature. At this time we are anxious to get construction underway."

Western is a power marketing administration of the U.S. Department of Energy (for more information go to www.wapa.gov).

Tonbridge Power Inc., is a Toronto-based developer of electrical transmission assets, whose principal asset is a 100% interest in Montana Alberta Tie Ltd. Shares of the Company are traded on the TSX Venture Exchange under the symbol "TBZ".

Should you wish to receive company notices via email, please notify us at info@tonbridgepower.com.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information