Altek Power Corporation

Altek Power Corporation

September 08, 2008 12:30 ET

Altek Power Corporation: Corporate Update

KELOWNA, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2008) - Altek Power Corporation (TSX VENTURE:APK)(FRANKFURT:RXB) -

Dear Fellow Shareholders;

We offer the following as an update on the status of affairs of the Company.

In January, 2008, the Company confirmed its first sale of the AT1200 to Europe. The unit for this project is currently still in production with full run testing expected later this month with commissioning following shipment to Northern Italy. Initially the unit will be run on pipeline natural gas with the heat being utilized by the client to dry its fine sand production used in the manufacture of glass. The electrical energy produced will be sold into the local power grid. Our client is developing a process to convert waste plastics into a usable fuel which will be burned in the AT1200 by late 2009.

The Company announced on March 31, 2008 that an AT1200 installation occurred in Northern Alberta to be used in the operation of an oil and natural gas battery. Final commissioning was expected to occur in June 2008. Shortly after running the unit, producing power to a test load bank, the engine failed. To date the Company has not been able to complete the installation due to poor workmanship by one of the Company's vendors requiring the Company to have extensive rebuild work done to the engine. The Company is in the process of removing the entire unit from the site in order to have it reconfigured to the Company's required standard of quality and fully run tested at its facilities before releasing it again to a customer. At this point there are no plans by our client in Alberta to have the unit reinstalled.

The Company has continued to perfect its patents and will now begin to aggressively seek royalties from those firms using Altek's patented technology. To summarize our patents, in 2005, three patents were granted, the first for an Overspeed Control System for Gas Turbine Electric Powerplant, and the second and third for the Microprocessor-Based Control System for Gas Turbine Electric Powerplant. On May 02, 2006 the Company received a fourth patent for a Gas Turbine Electric Powerplant. The Company continues to maintain these patents.

The Company has entered into an alliance with SKY USA, LLP of Texas to assemble the AT1200 power generating unit. SKY USA is a privately held manufacturing company with a progressive machine shop featuring a diverse assortment of 3, 4 and 5-axis CNC machines, specializing in full-service precision machining to the commercial, military and aerospace industries. SKY's Quality and Inspection department uses CMM technology to achieve the highest degree of accuracy and precision in the production of parts for their customers. SKY is committed to implementing the latest technology and industry advancements to deliver a superior product and provide a competitive advantage in these specialized industries. The company recently relocated to an 87,800 square-foot facility in Fort Worth, Texas, with approximately 30,000 feet of controlled environment. SKY has a unique and talented group of employees with extensive industry experience.

Over the past two years Altek has been supporting its official representative in Romania to establish a market in this new European Union country. After numerous visits by both the representative and the Company our efforts are starting to bear fruit and the Company has been asked to quote several projects over the past couple of months. However, the administrative and business decision making process appears to be much slower than in North America and it is difficult to project when, if at all, any of the quotes will be accepted. Romania is a promising country as most of the projects examined require the thermal energy produced by the AT1200 and the maintenance efficiencies of a turbine powered unit. In these cases, the electrical energy becomes a valuable by product and the projects are looking at overall efficiencies of 80% and greater.

Other types of areas that the Company is working with includes large developers in North America developing projects in the vicinity of such fuel sources as feedlots, municipal solid waste and waste water facilities whereby for example the manure can be converted into a gas by either gasification or through anaerobic digestion. The electricity and hot water will be produced to be provided to the community as part of a "Green" marketing plan. The Company's continuing operations are dependent upon the support of its creditors and shareholders, upon its ability to obtain necessary financing to complete its development projects and upon future profitable operations. The outcome of these matters cannot be predicted at this time.

Forward Looking Statement

Statements in this news letter concerning the company's business outlook or future economic performance; including the anticipation of future projects, partnerships, consortiums, teaming agreements, government assistance, other anticipated cash receipts, revenues, expenses, or other financial items; and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are "forward-looking statements". Forward-looking statements are by their nature subject to risks, uncertainties and other factors which could cause actual results to differ materially from those stored in such statements. Such risks, uncertainties and factors include, but are not limited to, changes in energy prices, availability of capital, and the company's ability to access capital on acceptable terms or any terms at all, changes and delays in project development plans, customer acceptance of new projects, competing alternative energy technologies, government policies and general economic conditions. These risks are generally outlined in the company's disclosure filings with the Securities and Exchange Commission.

Kindest Regards,

Altek Power Corporation

Rod Reum, President

Contact Information

  • Altek Power Corporation
    Rod Reum
    (250) 717-3707 or Toll Free: 1-888-717-3707
    (250) 717-3708 (FAX)