Eguana Announces Canadian Private Placement for $3 Million to Execute Growth Strategy in U.S. Residential & Commercial Energy Storage Markets

CALGARY, ALBERTA--(Marketwired - Dec. 15, 2014) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Eguana Technologies Inc. (TSX VENTURE:EGT) ("Eguana" or the "Company"), a technology leader in power conversion and control systems for distributed energy storage systems, announced today that, subject to regulatory approval it intends to raise up to $3.0 million through a brokered private placement (the "Private Placement") of 10 million units of the Company (the "Units") with accredited investors in Canada at a price of $0.30 per Unit.

Each Unit will consist of one common share of the Company and one half of one common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to purchase one common share of the Company for a period of 60 months from the closing date of the Private Placement at a price of $0.39 per common share.

The Company anticipates closing the Private Placement on December 22, 2014.

The net proceeds of the Private Placement will be used to:

• Accelerate launch of a North American verison of the Company's highly successful Bi-Direx power control system for the U.S. residential solar energy storage market during Q1, 2015
• Complete the development and launch of a mid range (10kW to 18kW) power control system for the U.S. commercial demand response market by the end of Q2, 2015
• Increase engineering capacity to support a growing base of potential customer relationships with solar integrators and battery manufacturers
• Optimize supply chain management for rapidly increasing production volumes in Europe.

Eguana currently has production capacity for 1,000 Bi-Direx units per month in Germany and another 1,000 Bi-Direx units per month in North America. A very capital efficient operating model enables the Company to quickly ramp production with minimal working capital investment.

Based on forecast demand from contracted customers, the Company believes that the net proceeds of the Private Placement are sufficient to allow it to meet the stated objectives and reach positive operating cash flow within the next two Quarters.

BayFront Capital Partners Ltd is acting as financial advisor and selling agent along with AllGroup Financial Services Inc in connection with the transaction.

About EGUANA TECHNOLGIES INC.:

Headquartered in Calgary, Alberta, Canada, Eguana Technologies Inc. designs and manufactures intelligent high performance low-voltage power electronics platforms for distributed smart grid and energy storage applications. Eguana's software configurable platform enables energy storage systems to optimize the lower cost, modularity and safety advantages of low voltage advanced battery technologies at a much lower cost, and with greater design flexibility than is possible with conventional power electronics solutions.

To learn more, visit www.EguanaTech.com or follow us on Twitter, https://twitter.com/EguanaTech.

The reader is advised that some of the information herein may constitute "forward-looking information" within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include statements concerning: the terms and conditions of, the size of, the closing of, and the Company's use of net proceeds from, the Private Placement; the development and launch of new products; Eguana's production capabilities; Eguana's working capital requirements; Eguana's ability to generate positive operating cash flow; the features of Eguana's power conversion and power control systems; and Eguana's competitive position as a technology leader for advanced battery technologies and demand for its products.

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. Readers are also directed to the risks identified in the Company's disclosure documents, which may be found on its website or at www.sedar.com. The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

THESE SECURITIES ARE BEING SOLD IN CANADA AND MAY NOT BE SOLD IN THE UNITED STATES. THIS PRESS RELEASE IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY STATE OF THE UNITED STATES WHERE THE OFFER OR SALE IS NOT PERMITTED. THE UNITS AND UNDERLYING SECURITIES ISSUED IN THIS OFFERING ARE NOT REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR U.S. STATE SECURITIES LAWS."