SOURCE: Composite Technology Corporation

August 27, 2009 12:49 ET

Composite Technology Announces Repeat ACCC Conductor in South America

Third ACCC™ Conductor Project Awarded in Chile

IRVINE, CA--(Marketwire - August 27, 2009) - Composite Technology Corporation (CTC) (OTCBB: CPTC) is pleased to announce an order for its patented and proprietary ACCC™ conductor issued to our subsidiary, CTC Cable Corporation. The order is significant as it represents another repeat order for ACCC conductor from the utility in Chile after a long period of evaluation of the previous installation.

The order provides 112 kilometers of ACCC conductor with hardware for the replacement of a 110kV double circuit power line in Santiago, Chile. The contract was awarded by Enersis on behalf of Chilectra S.A, who operates the line. Enersis and Chilectra are majority-owned by Endesa of Spain. The conductor will be delivered in the fourth calendar quarter of 2009 and installation will take place in the first quarter of 2010.

Last year, Chilectra installed a pilot line for evaluation and certification of ACCC conductor for widespread use in Chile. Based on their favorable results with the conductor, Chilectra placed a subsequent order for 28 kilometers of ACCC conductor due to be installed in September 2009 and has now placed a third order for the 112 kilometers described herein. ACCC conductor is already in use in over 5000 miles of transmission and distribution grids in the U.S., China, Europe and Latin America. The new conductor used in Chile is the Linnet 431 kcmil (218 mm squared) size. The new order is scheduled to be stranded by General Cable in LaMalbaie, Canada.

"We are very pleased with this order, which represents another step in our successful strategy to spread the use of ACCC conductor throughout Chile and other Latin American countries," stated Marv Sepe, COO of CTC and President of CTC Cable. "CTC Cable invested the work required to develop this ground-breaking technology, to prove its capabilities and to provide complete transparency to interested potential purchasers and regulatory bodies around the world. We have spent years developing markets and demonstrating to the world the benefits of efficient power transmission using our patented ACCC conductor, which is the only proven carbon fiber composite core conductor in widespread use in the world. We have done this through independent testing and by exposing our product to test regimes and conditions that exceed worst case applications in the field. Other companies may claim they have the same product and some may try to copy the technology, but there is only one ACCC conductor and only one company that can demonstrate over 130 successful project installations of ACCC conductor. We have a global footprint with sales and distribution resources around the world and six qualified stranding sources to serve geographic markets. We will have more sources soon with new stranders undergoing qualification. We remain committed to continue the task of bringing this advanced conductor to transmission line projects throughout the world, since it has the highest energy throughput with the highest energy efficiency of any conductor in widespread use on the market and which provides an excellent return on investment on a project basis."

About Chilectra S.A.

Chilectra S.A. is engaged in the distribution, sale, and supply of electrical energy. Chilectra operates in the city of Santiago. Its market consists directly of consumers in its electricity distribution public utility concession area. The company also operates in foreign markets, with electricity distribution concessions in the southern sector of Buenos Aires, Argentina, in the northern sector of Lima, Peru, through Edelnor S.A., in the state of Rio de Janeiro, Brazil, through Cerj S.A., and through Coelce in the state of Ceara, Brazil.

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 high efficiency ACCC* conductors, used in electrical transmission grids. ACCC™ conductors have less line loss compared to similar diameter conventional conductors and therefore enable power generators to reduce the amount of generation while still delivering the same power to customers. Our conductors have demonstrated significant savings in upgrade capital costs as well as operating expenses when substituted in grid systems. ACCC™ conductors enable grid operators to reduce blackouts and brownouts by providing reserve electrical capacity, since they can be operated at higher temperatures without significant thermal line sag. ACCC™ conductors are an economical solution for reconductoring power lines, constructing new lines and crossing large spans. ACCC™ core is produced by CTC Cable and delivered to licensed qualified conductor manufacturers worldwide for 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 in both 60Hz and 50Hz, the 2MW D8 model in 50Hz, and the 1.25MW D6 model in 50Hz. The D8.2 turbine uses a WinDrive® hydrodynamic torque converter, by Voith AG, in combination with a synchronous high voltage generator that is synchronized directly to the grid without the use of power conversion electronics. DeWind D8.2 turbines are assembled at TECO Westinghouse Motor Co., in Texas.

*ACCC is a trademark of CTC Cable Corporation

For further information visit our website: Investor Relations Contact: James Carswell, +1-949-428-8500.

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, new or revised governmental laws and regulations (or the lack thereof) that affect wind energy, 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 and financing in general by us and our 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/A for fiscal year ended September 30, 2008 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

  • Investor Relations Contact:
    James Carswell