Sustainable Energy Technologies Ltd.
TSX VENTURE : STG

Sustainable Energy Technologies Ltd.

September 16, 2010 08:30 ET

Sustainable Energy Expands Management Team and Steps Up Production

Highlights:

- Strengthens Leadership Team with Arrival of Operations Executive Justin Holland

- Successfully Resolves Component Supply Constraints to Increase Production Output

TORONTO, ONTARIO--(Marketwire - Sept. 16, 2010) - Sustainable Energy Technologies Ltd. (TSX VENTURE:STG) ("Sustainable Energy") today announced the appointment of Justin Holland as Vice President responsible for all supply side aspects of the Company's business. His responsibilities include component supply chain management, final product assembly and testing as well as responsibility for management of the Sustainable Energy's integrated sales and operations platform. 

A senior operations executive based in Toronto, Ontario, Justin has a successful track record of managing manufacturing operations and integrated sales and operations planning platforms in the electronics, pharmaceutical and food industries.

"Justin is the consummate professional and will be a valuable asset to our management team," stated Michael Carten Chief Executive Officer. "Having only joined the Company earlier this summer, Justin has already made a significant impact to our operations. Under his leadership we have implemented an integrated sales and operations planning platform which enables us to work closely with our suppliers and sales partners to assure product availability and to respond quickly to changes on product demand with minimal capital exposure."

The Company announced also that component supply constraints experienced earlier in the year have been successfully resolved enabling an increase in production output beginning in the November/December 2010 time frame. Since production start-up in late March of this year, Sustainable Energy has shipped 5.6 MW of SUNERGY II inverters and plans to ship an additional 8.2 MW before calendar year end. 

The Company is targeting monthly production capacity of 4MW – 5 MW per month by the March/April 2011 time frame to meet a very rapidly growing order book in Ontario and the United States. 

"Our supply chain model entails closely integrated partnerships with suppliers of the core sub-assemblies of the SUNERGY inverter - including electronic circuits, magnetic components and enclosures – in order to reduce costs, shorten supply chains and respond quickly to changes in market demand," stated Justin Holland. "As part of our quality controls, outsourced sub-assemblies are assembled and tested by the Company prior to final shipment to customersIn today's competitive market place, the three essentials for supply chain success are agility, alignment, and adaptability and Sustainable Energy's have been designed to meet all three," continued Holland.

"This is a proven model which is easily executed with the SUNERGY inverter due to the simplicity of the final assembly and testing process. The capital investment needed for final assembly and testing is very modest and it can be easily replicated in different venues to meet local demand. The core sub-assembly supply partnerships are in place and we are building and shipping inverters which meet the made in Ontario domestic content requirements from Cambridge Ontario," Holland concluded.

The Company also announced that it will restructure its relationship with Plexus Corporation (News Release dated May 4, 2010) to defer production of inverters in Europe until there is better visibility on product pricing changes resulting from devaluation of the Euro. European demand will be met from China by the Company's other sub-contractor. The Company will however continue to look to Plexus as a supplier of the power electronics sub-assembly for the SUNERGY inverters.

About Sustainable Energy: Sustainable Energy www.sustainableenergy.com designs, manufactures and distributes power inverters for grid-connected solar PV systems. Advanced power inverters are a critical enabler of all modern solar PV power systems converting the direct current ("DC") power output of the solar PV modules into the high quality alternating current ("AC") power required by the power grid. Advanced power inverters also optimize the performance of the solar PV modules and maintain the integrity and safety of the interconnection with the power grid.

The extra low operating voltage (50v – 100v) of the SUNERGY ELV platform enables a system architecture that is inherently safe and that can be installed and maintained by most building trades without the need for PV specialists, significantly reducing the installed system cost and increasing investor yields. The SUNERGY inverter is rated for operating conditions ranging from minus 40 degrees Celsius to plus 50 degrees Celsius. 

Sustainable Energy's technologies are the subject of multiple patents issued by and pending with the US Patent and Canadian Patent Offices.

For competitive and customer confidentiality reasons, the Company does not disclose the value of contracts.

Forward Looking Information

The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, it includes: statements concerning the impact of our technology on solar PV system performance; statements concerning forecast production of SUNERGY inverters and targeted production capacity. While management believes these statements to be accurate they are dependent on a wide range of factors beyond management's control and should not be viewed as a guarantee of the specific outcome. Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties.

Many factors could cause the Companies' 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. The Companies do 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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