Maxim Power Corp.
TSX VENTURE : MXG
TSX : MXG

Maxim Power Corp.

October 11, 2006 11:35 ET

Maxim Power Corp. Announces Acquisition of Balleycourt Cogen

CALGARY, ALBERTA--(CCNMatthews - Oct. 11, 2006) - Maxim Power Corp. ("MAXIM") (TSX:MXG) today announced that, through its wholly-owned subsidiary, Comax France S.A.S., it has entered into a definitive Purchase and Sale Agreement ("PSA") to acquire 100% of the 8.0 MW Balleycourt Cogen plant ("Balleycourt") located in Verdun, France. Balleycourt has 5 years remaining on a 12 year Power Purchase Agreement with Electricite de France. Total consideration, including debt, is approximately Euro 5 million ($Can 7.1 million). The transaction is expected to close on or before October 20, 2006, subject to the satisfaction of certain conditions precedent, and will be financed from cash on hand.

The Balleycourt acquisition will add a power plant with similar commercial and technical characteristics to MAXIM's 11 existing power projects in France and bring MAXIM's generation portfolio in France to 12 plants with a total of 76 MW electric and 42 MW thermal net installed generating capacity. In MAXIM's opinion, France continues to be an attractive market for cogeneration, offering long-term contracts with creditworthy counterparties and an emerging deregulated wholesale energy market.

ABOUT MAXIM

Based in Calgary, Alberta, MAXIM is an Independent Power Producer, which acquires or develops, owns and operates innovative and environmentally responsible power projects. Following the Balleycourt acquisition, MAXIM will own and operate 24 power plants in Western Canada, United States, and France, having 445 MW of electric and 68 MW of thermal net generating capacity.

MAXIM will continue to execute on its strategy as an Independent Power Producer and is targeting significant growth through acquisitions and development of power projects which utilize hydrocarbon based fuels and renewables in the markets of Western Canada, United States and France. MAXIM trades on the TSX under the symbol "MXG". For more information about MAXIM, visit our website at www.maximpowercorp.com.

Statements in this release which describe MAXIM's intentions, expectations or predictions, or which relate to matters that are not historical facts are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of MAXIM to be materially different from any future results, performances or achievements expressed in or implied by such forward-looking statements. MAXIM may update or revise any forward-looking statements, whether as a result of new information, future events or changing market and business conditions.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the press release.

Contact Information

  • Maxim Power Corp.
    John R. Bobenic
    President and CEO
    (403) 750-9300

    OR

    Maxim Power Corp.
    Victor S. Dusik
    Vice President, Finance and CFO
    (403) 750-9319