SOURCE: Composite Technology Corporation

August 11, 2008 08:05 ET

Composite Technology Receives Key Mexican Grid Certification

CTC Cable Receives LAPEM Certification for ACCC Conductor

IRVINE, CA--(Marketwire - August 11, 2008) - Composite Technology Corporation (CTC) (OTCBB: CPTC) is pleased to announce its subsidiary CTC Cable has received certification from Laboratorio de Pruebas de Equipos y Materiales (LAPEM) for both CTC Cable and for its ACCC conductor products. LAPEM is the certifying agency for Comision Federal de Electricidad (CFE) the electrical transmission grid owner and electricity provider for nearly all of Mexico. No product may be deployed on the CFE grid without LAPEM's certification.

CTC Cable entered into the certification process with LAPEM in November 2007. The lengthy certification process involves a registration and extensive audit of the company, CTC Cable, in coordination with a thorough investigation and review of ACCC conductor technology, standards and evaluation results. LAPEM, CFE and CTC Cable personnel coordinated closely throughout the certification process including several facility visits and a five day audit by LAPEM of CTC Cable's manufacturing operations. The initial certification is valid for three years.

"The CTC Cable team worked very hard to achieve this certification as it clears the way for ACCC products to be used throughout Mexico as a standardized item. CFE can now specify ACCC conductors directly in upcoming tenders where high capacity and high efficiency conductors are needed. We believe the Mexican market is very promising, especially in light of their stated desire to improve the efficiency of the CFE grid," stated Marv Sepe, COO of CTC and President of CTC Cable.

About CTC:

Composite Technology Corporation, based in Irvine, California, USA, develops, manufactures and sells innovative high performance electrical transmission and renewable energy generation wind turbines 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 60Hz and 50Hz; 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.

*ACCC is a trademark of CTC Cable Corporation

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

About Comision Federal De Electricidad:

Comision Federal De Electricidad (CFE) is a decentralized public entity of the Mexican Federal Government created by decree of the legislative branch of the Mexican Congress in 1937. CFE mainly renders public utility electric energy service throughout Mexico, which consists of generating, conveying, transforming, distributing and supplying electric energy, as well as planning and carrying out all the projects, installations and works required by the national electricity system with respect to planning, execution, operation and maintenance, with the applicable participation of independent energy producers. CFE operates through thirteen regional branches.

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

  • Investor Relations Contact:
    James Carswell