Sustainable Energy Technologies Ltd.
TSX VENTURE : STG

Sustainable Energy Technologies Ltd.

August 30, 2010 18:04 ET

Sustainable Energy Reports 9-Month Operating and Financial Results

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2010) - Sustainable Energy Technologies Ltd (TSX VENTURE:STG) ("Sustainable") today reported its operating and financial results for the nine-month period ending June 30, 2010.

The Consolidated Financial Statements and Management's Discussion and Analysis thereof can be found with the Company's public documents on SEDAR (www.sedar.com) and at the Company's website (www.sustainableenergy.com) under Investor/Financials/Fiscal 2010.

Highlights

  • Q3 saw the first deliveries of second generation SUNERGY II inverters in Europe and the US. Total sales revenues for the period for Q3 were $817,626 bringing the nine month total to $1,312,170.

  • Sustainable Energy is experiencing strong multi-megawatt demand for its inverters in all markets especially in Ontario for the micro-FIT market, where it has been forced to place customers on allocation until calendar 2011, and in Greece, which is expected to be a net contributor by the end of calendar 2010.

  • Management is addressing previously announced shortages in electrical components that caused the Company to revise production forecasts downward for 2010. It is optimistic about returning to previously announced production rates by calendar Q1, 2011.

  • Sustainable Energy's strategy remains unchanged. It will use Ontario as a test market to validate the parallel system architecture for large residential small commercial and institutional applications, and to build out production capacity before entering the US market during the second half of 2011.

  • In Ontario, the micro-FIT market (under 10kW) is emerging as the fastest growing market segment with an estimated 200 – 250 MW of installations forecast for calendar 2011. Micro-FIT projects require inverters in the SUNERGY power rating eliminating competition from central inverters in the market and often require that the inverters be outdoor-rated. Sustainable Energy's SUNERGY II is the only CSA/UL outdoor rated inverter in its class capable of serving this market.

  • In Europe, the Company will focus on extending private labeling channels like those in place with Salicru in Spain and Solar Consult/Changetec in Germany. An exception will be Greece where the Company expects to be able to market PARALEX packages.

  • Sustainable Energy announced that it will manufacture inverters in Ontario for the North American market using sub-assemblies sourced in Ontario and offshore from contract manufacturers. The model will reduce the delivered cost of the product and add more flexibility to respond to changes in market demand.

The Company also noted evidence that market acceptance for the parallel system design is quickly accelerating. Based on a recently announced report by IMS Research (July 9, 2010) the Company estimates that parallel systems have taken approximately 38% of the US residential market in less than 2 years market based on micro-electronics solutions. The micro-electronics products offer the same value propositions as that offered by Sustainable Energy for the much larger small commercial and institutional rooftop market up to 150kW but at a higher cost and more complex and risky maintenance paradigm. The Company also noted the importance of this signal that the market prefers the parallel system architecture even at a higher cost than conventional 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 – 150v) of the SUNERGY ELV platform enables a parallel system architecture that delivers higher energy yields, a better fill factor on rooftops, and is inherently safe. Parallel systems 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.

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

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 the potential for sales in the Ontario market which are dependent on a number of factors including the rate at which the market grows and the administration of the Ontario Feed in Tariff Program; and statements concerning the potential for sales to Conergy during 2010 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 Company's 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 Company does 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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