AccelRate Power Systems Inc.

AccelRate Power Systems Inc.

March 25, 2008 18:33 ET

AccelRate Power Systems Streamlines Inventory Arrangement With Hawker Powersource

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 25, 2008) - AccelRate Power Systems ("AccelRate") (TSX VENTURE:APS)(FRANKFURT:KCG), the technology leader in "High-Speed" battery chargers, has made significant changes to its inventory and marketing arrangements with Hawker Powersource.

AccelRate achieved a major milestone in its commercialization strategy when it originally signed a license in April, 2005 with Hawker Powersource Inc., the largest brand of industrial lead-acid batteries in the world. In exchange for an up-front license fee and on-going royalties, AccelRate granted Hawker an exclusive license to manufacture and sell battery chargers, incorporating AccelRate's technology, in the lead-acid motive and reserve power sectors throughout North America. In addition, Hawker agreed to manufacture a private-label brand of chargers for AccelRate, which were virtually identical to Hawker's LifeSpeed 3000 chargers.

The sales of the private-label chargers failed to meet AccelRate's expectations and AccelRate has agreed to return the unsold private-label inventory, valued at a cost of approximately $525,000, to Hawker Powersource to satisfy the payment of the inventory accounts payable balance totaling $570,870. It is expected that the accounts payable balance will be fully repaid from this inventory along with certain related cash payments and the application of royalties due to the Company. Although there is an agreement in principle to settle this accounts payable balance with Hawker, the details of the settlement have yet to be finalized. Management has reviewed the remaining inventory and has decreased the value by approximately $617,000.

"Although we are disappointed with the sales results of our private-label products, we are very pleased that Hawker has shown their confidence in our technology by accepting our inventory, which they will continue to sell through their distribution channels, in settlement of their inventory loan," said Mr. Reimar Koch, President of AccelRate. "This loan settlement and inventory adjustment will result in an improved balance sheet and position the Company for the future. We believe our inability to achieve significant sales of our private-label products has been the result of the limited sales and marketing resources of the Company. This limited budget lead to the inability of the Company to develop brand recognition for the "AccelRate" name and to be able to differentiate the "AccelRate" brand from its competitors. We are confident in our technology and continue to receive positive feedback on our charger and its performance from our current dealers. We are seeing improved royalty contributions from increased sales from Hawker Powersource in the United States and EnerSys in Europe. AccelRate will continue its efforts to expand sales and explore other markets to broaden the reach of our technology."

About AccelRate:

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's proprietary charging technology functions effectively with batteries of all conventional chemistries and sizes in industrial, portable, power tool, military and transportation applications.

AccelRate Power Systems 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 statements 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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