AccelRate Power Systems Inc.

AccelRate Power Systems Inc.

October 12, 2006 16:34 ET

AccelRate Announces Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 12, 2006) - AccelRate Power Systems ("AccelRate") (TSX VENTURE:APS)(FWB:KCG), the technology leader in "High-Speed" battery chargers, announced today that it has arranged to sell 843,334 Units by way of a non-brokered private placement at the price of $0.30 per Unit, to raise gross proceeds of approximately $253,000. 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 $0.35 for one year after closing.

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.

"We require an infusion of capital at this time 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.

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 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

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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