Sustainable Energy Technologies Ltd.
TSX VENTURE : STG

Sustainable Energy Technologies Ltd.

September 12, 2005 16:10 ET

Sustainable Energy Closes $1.0 Million Financing

CALGARY, ALBERTA--(CCNMatthews - Sept. 12, 2005) - Sustainable Energy Technologies Ltd (TSX VENTURE:STG) the "Company"), has completed a previously announced private placement of securities to raise gross proceeds of $1 million.

The issue, which was subscribed by two institutional investors, comprised a sale of 50 Limited Partnership Units ($500,000) of its subsidiary STG Markets Limited Partnership ("STG Markets") at a price of $10,000 per Unit; and the issuance of 1,851,852 Common Shares of the Company ($500,000) at a price of $0.27 per share. Each STG Markets LP Unit will be callable by the Company after December 31, 2005, in exchange for 33,334 Common Shares ($0.30 per share) of the Company.

The private placement is in addition to a previously announced private placement of 125 STG Markets LP Units ($1,250,000) each of which is callable by the Company after December 31 2005, in exchange for 55,556 Common Shares ($0.18 per share) of the Company.

The Company also announced that 2 million Common Shares held under a performance escrow have been cancelled.

The net proceeds of the issue will be used for marketing Sustainable Energy's SUNERGY line of solar inverters in Europe, targeting the rapidly growing Spanish market. Spain has recently announced significant increases in its goals for solar photovoltaic installations. The SUNERGY inverters are ideally suited to the Spanish and other hot weather markets, and the Company is aiming to be a major participant in this market, manufacturing its inverters in Spain, under a previously announced partnership with Barcelona based Gabriel Benmayor S.A.

All securities issued in connection with the financing are subject to a four month hold period.

Sustainable Energy (www.sustainableenergy.com) develops manufactures and markets advanced power inverters for the renewable energy industry. Power inverters are strategic to the integration of new renewable energy technologies - solar and wind power, fuel cells, and energy storage systems - into the power infrastructure.

Certain statements contained in this press release may be considered as forward-looking. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from estimated or implied results.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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