SOURCE: Composite Technology Corporation

Composite Technology Corporation

October 12, 2010 08:05 ET

Composite Technology Expands ACCC Stranding Relationships in South America

CTC Cable Establishes Stranding and Representation Agreements With IMSA

IRVINE, CA--(Marketwire - October 12, 2010) -  Composite Technology Corporation (CTC) (OTCBB: CPTC) is pleased to announce that its subsidiary, CTC Cable Corporation, has entered into stranding and representation agreements with Industria Metalurgica Sud Americana S.A. ("IMSA"), a cable manufacturer located in Buenos Aires, Argentina. The agreements define specific conditions to become a qualified strander for CTC Cable as well as the terms for sale and distribution of ACCC® conductor in specific South American markets.

IMSA began stranding qualification work in September. When their stranding certification is completed, as outlined in the agreement, IMSA will become the eighth company to qualify for stranding of ACCC® conductor worldwide. CTC Cable engages well established cable companies in strategic markets to serve the local region and reduce logistics and tariff costs. The addition of IMSA's production capability for finished ACCC® conductor will provide cost effective stranding capabilities for ACCC® conductor in the Latin American markets. IMSA brings over 60 years of manufacturing and sales experience, and we believe they will accelerate the expansion of CTC's market presence in Latin America through targeted joint sales and marketing efforts. 

Upon the signature of these agreements, Alexander Kruszewski, Director of IMSA, said, "With its high performance and low sag characteristics, the composite core conductor technology is a focused economical solution to help congested electrical grids cope with increasing demands. IMSA helps its customers face this challenge with many years of experience and solid knowhow in overhead conductors which will now be combined with the innovative technology of ACCC® conductors provided by CTC Cable Corporation. We are one step ahead of our clients' needs and will be able to supply them with a total solution conductor for efficient high voltage lines."

Benton Wilcoxon, Chief Executive Officer of Composite Technology Corporation, commented, "We are very pleased to announce this agreement with a proven, high quality manufacturer such as IMSA. We believe this relationship will assist us in providing cost effective ACCC® conductor to the key country members of MERCOSUR, the common trade agreement founded by Brazil, Argentina, Uruguay and Paraguay."

About Industria Metalurgica Sud Americana S.A. ("IMSA"):
Since 1947 IMSA has produced electrical cables and magnet wires of the highest quality, exceeding the most demanding international standards. Electrical cables are produced for low, medium and high voltages, bare and insulated. IMSA has highly qualified personnel, the most advanced equipment and a continuous monitoring system to meet high manufacturing standards including ISO 9001 certification. IMSA is the second largest cable producer in Argentina and sells to customers throughout the region. The IMSA manufacturing operation is located in Merlo, a suburb of Buenos Aires. 

About CTC:
Composite Technology Corporation's patented ACCC® conductor technology enables superior performance of high voltage transmission and distribution electrical grids. ACCC® conductors use CTC's proven carbon fiber core which is produced at its Irvine, California headquarters and delivered to qualified conductor manufacturers who produce and distribute ACCC® conductors to operators of electrical grids worldwide. CTC's conductor technology significantly reduces thermal line sag and can replace similar diameter and weight traditional conductors with its higher capacity and more energy efficient ACCC® conductor. It is an ideal conductor for both upgrading existing power lines as well as building new lines since the technology allows for the reduction of the number of support structures and/or a reduction of their height. Since its commercial introduction in 2005, nearly 9,000 kilometers of ACCC® conductor have been installed in all environmental and operating conditions, including severe heat and ice environments, long span applications and high capacity corridors for the modern grid. ACCC® is a registered trademark of CTC Cable Corporation.

For further information, visit our website: or contact Investor Relations: 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, resolution of pending and threatened litigation matters involving CTC or its subsidiaries, resolution of disputes with CTC's or subsidiaries' creditors competition with larger companies, development of and demand for a new technology, 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 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, 2009 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