SOURCE: Composite Technology Corporation

February 21, 2008 08:05 ET

Composite Technology Receives New Conductor Orders

ACCC™ Conductor Use Continues to Grow in China

IRVINE, CA--(Marketwire - February 21, 2008) - Composite Technology Corporation (CTC) (OTCBB: CPTC) is pleased to announce new orders for 418 kilometers (260 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 four different core sizes with associated hardware and is valued at approximately $2,775,000. The ACCC™ core will be stranded by Far East in China and will be used for transmission projects in An Hui and Jiang Su provinces. Terms of the sale are consistent with an established three year Distribution Agreement which provides favorable cash management terms to CTC Cable. The use of ACCC conductor continues to increase in China and adds to the ever expanding installed base of ACCC.

"China is an excellent market for ACCC conductor and we are very pleased to see the list of installations growing. Far East is now a certified stranding source for ACCC core for the local production of ACCC conductor, which will provide new opportunities to demonstrate the unique benefits of our product to regional utilities," 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 rod 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 with a synchronous AC generator connected directly to the grid at high voltage without the use of power conversion electronics. The first 60Hz D8.2 is now installed at a site in Sweetwater, Texas, where it will be initially be used for demonstration to North American customers. DeWind D8.2 turbines are now being assembled at TECO Westinghouse Motor Company in Texas for our North and South American customers.

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

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
    +1-949-428-8500