Sustainable Energy Technologies Ltd.

Sustainable Energy Technologies Ltd.

March 05, 2007 12:06 ET

Sustainable Energy Delivers More Than 2 Megawatts of Solar Inverters

CALGARY, ALBERTA--(CCNMatthews - March 5, 2007) - Sustainable Energy Technologies Ltd. (TSX VENTURE:STG), reported its financial and operating results for the quarter ended December 31, 2006. The Financial Statements, Management Discussion and Analysis can be found with the Company's public documents on SEDAR (

Product sales revenues for the quarter ending December 31, 2006 were $321,300. While less than anticipated, the shortfall was, however, made up during January and February of this year, and total sales for the 4-month period ending February 28, 2007 are approximately $1 million.

"This is an important turning point for Sustainable Energy," said Michael Carten President & CEO of the Company. Since November we have sold and delivered more than 2 megawatts of grid-tie inverters in Spain. This is more grid-tie inverters than were sold in all of Canada last year."

"We are gaining market share because of the superior thermal performance of the SUNERGY product in hot weather markets. Unlike most other outdoor products, which can only operate at full power for a limited period of time when outside temperatures are rising, the SUNERGY operates at full power all day long at temperatures in excess of 50 degrees Celsius.

This is a critical advantage in Spain and other southern European markets which are heavily oriented towards outdoor commercial projects," added Carten. "Spain is currently the fastest growing major solar market in the world, and we are well positioned not only to expand our share of this market, but to develop other hot weather markets such as Italy and Greece."

The operating loss (before interest depreciation and taxes) for the quarter was $783,791 up from $485,256 for the previous year. The increased loss reflects aggressive marketing and promotional pricing as part of the Company's market entry strategy. It also reflects the amortization of higher cost component inventory acquired during the commercialization process and higher one-time transportation costs during production startup.

With current European market pricing for inverters in the SUNERGY power rating, the Company is expecting to realize industry standard product margins going forward. The Company is also meeting its cost reduction targets for higher volume production and expects to further reduce costs through design changes for the European industrial and commercial markets.

Sustainable Energy also completed prototype testing of a 2.0kW - 2.5kW inverter, which will operate solar PV and wind power systems on a stand alone basis, or in combination with batteries as part of a grid-interactive back up power application. The first product application will be for a next-generation residential scale wind turbine being manufactured by Japan's Zephyr Corporation, and the Company is completing field trials of the inverter and wind turbine at the University of Calgary.

Under a recently announced agreement with Zephyr the Company has acquired the right to distribute a bundle consisting of the inverter and turbine to the Canadian market.

The Company also announced that its director Paul Wormser has resigned from the Board to take an executive position with a major solar module manufacturer and prospective customer for Sustainable Energy.

About Sustainable Energy

Based in Calgary Alberta, Sustainable Energy ( 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 high quality power demands of the modern electrical grid.

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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