SOURCE: Composite Technology Corporation

March 24, 2008 08:05 ET

Composite Technology Announces New Conductor Orders From China

ACCC™ Core Orders for Quarter Top 900 Kilometers

IRVINE, CA--(Marketwire - March 24, 2008) - Composite Technology Corporation (CTC) (OTCBB: CPTC) is pleased to announce new orders for 460 kilometers (286 miles) of ACCC™ conductor for use on the Chinese electrical grid. The order issued to our subsidiary, CTC Cable Corporation, by Far East Composite Technology Company, a subsidiary of Jiangsu New Far East Cable Corporation (Far East), is made up of multiple core sizes with associated hardware for several installations including sites in Jiang Xi Province and Nanjing City.

The order is valued at approximately $3.1 million and brings the total ACCC™ core ordered by Far East in this calendar quarter to 900 kilometers, which is consistent with quarterly minimums established in the three year Distribution Agreement between CTC Cable and Far East. ACCC™ core will be stranded by Far East in China under terms of the Agreement. The use of ACCC™ conductor is accelerating in China and appears to be enhanced by recent severe weather, which caused massive damage to the electrical transmission infrastructure in China requiring widespread replacement of transmission lines.

"Recent events in China provide a tremendous opportunity to replace damaged transmission lines with high efficiency ACCC™ conductor. Far East has done an excellent job presenting the benefits of ACCC™ conductor to the regional utilities and continues to meet the established quarterly goals," stated Marv Sepe, COO of CTC and President of CTC Cable.

About Jiangsu New Far East Cable Corporation:

Jiangsu New Far East Cable Corporation and its subsidiary, Far East Composite Technology Company, are located in Yixing City, Jiangsu, China. Jiangsu New Far East is one of China's leading manufacturers of electrical transmission and distribution cable, which it sells to China's regional power grids through 200 local distributors.

About CTC:

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

--  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.
    
--  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 50Hz and 60Hz; 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.
    

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

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

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