Sustainable Energy Technologies Ltd.

Sustainable Energy Technologies Ltd.

August 22, 2005 17:27 ET

Sustainable Energy Raises $1.25 Million

CALGARY, ALBERTA--(CCNMatthews - Aug. 22, 2005) - Sustainable Energy Technologies Ltd (TSX VENTURE:STG) the "Company"), a leading developer of products for the alternative and renewable energy industries, announced today that its subsidiary STG Markets Limited Partnership ("STG Markets") has agreed to sell 125 Limited Partnership Units ("LP Units") for gross proceeds of $1,250,000. The issue, which was priced in early July, is fully subscribed.

The net proceeds of the issue will be used for marketing Sustainable Energy's SUNERGY line of solar inverters in Europe, focusing on Spain and Germany, and to increase working capital reserves.

The Company recently announced its first supply contract for the SUNERGY 5 with Free Power, a Barcelona based distributor of integrated solar power systems, and began manufacturing inverters in small volumes for the Spanish market last month. Higher volume production in Barcelona Spain is targeted for early this fall, under a previously announced partnership with Gabriel Benmayor S.A.

Last year, almost 400 MW of solar power installations were installed in Europe - an estimated market value of approximately $3 billion. This is up from 130 MW in 2003, and is expected to approach 500 MW in 2005, led by Germany and Spain.

Advanced power inverters are a critical part of the infrastructure for solar power systems, converting the direct current output of the solar modules to grid-quality alternating current. The SUNERGY series of inverters has electrical conversion efficiencies among the highest in the industry and the industry's best thermal rating, ensuring maximum power output from the solar modules throughout the day.

Under the terms of the financing each STG Markets LP Unit will be callable by the Company after December 31, 2005 in exchange for 55,556 Common Shares ($0.18 per share) of the Company - a total of 6,944,444 Common Shares. The Company will pay finders' fees totaling $87,500 and is issuing 694,444 common share purchase warrants, exercisable by the holders thereof until August 19, 2006, at a price of $0.18 per share.

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

Sustainable Energy Technologies Ltd ( develops, manufactures and markets products for emerging alternative and renewable energy markets.

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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