Sustainable Energy Technologies Ltd.
TSX VENTURE : STG

Sustainable Energy Technologies Ltd.

January 30, 2006 15:53 ET

Sustainable Energy Technologies Ltd.: Highlights of 2005 Operating and Financial Results; 2006 Priorities Targeted

CALGARY, ALBERTA--(CCNMatthews - Jan. 30, 2006) - Sustainable Energy Technologies Ltd. (TSX VENTURE:STG), www.sustainableenergy.com today reported its financial and operating results for the fiscal year ended September 30, 2005.

The Company's net loss (after depreciation and amortization) for 2005 was ($2,439,351), by comparison to a net loss in 2004 of ($2,082,357) before restructuring gains realized in that year. Revenues for 2005 were $230,021 by comparison to $404,152 in 2004. Reduced revenues reflect reduced inverter sales for fuel cell applications and delays in production of the Company's SUNERGY 5 solar inverter.

Liquidity as measured by working capital was $2,471,538 at September 30, 2005 versus $400,659 at September 30, 2004. The Company's average monthly burn rate during 2005 was $152,000. Since year end, the Company raised an additional $250,000, and entered into a previously announced $245,000 Contribution Agreement with Canada's National Research Council Industrial Research Assistance Program ("NRC-IRAP").

The Financial Statements, Management Discussion and Analysis and Corporate update containing a more fulsome discussion 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 2005.

2005 Highlights:

During 2005:

- Underwriters Laboratories ("UL") confirmed that Sustainable Energy's SUNERGY inverter met the strict interconnections standards prescribed for grid-tie inverters. The SUNERGY is the first inverter to offer the solar power industry the inherent safety and reliability advantages of lower voltage solar integration for grid-connected applications. Also, unlike most other solar inverters, which typically reduce power output as outside temperatures rise, the SUNERGY maintains full power through 500 C making it an ideal product for markets such as Southern California, Southern Europe and other hot - and sunny - climates.

- The Company partnered with Gabriel Benmayor SA, ("Benmayor") a Barcelona based precision manufacturing firm to manufacture its products in Spain. The Benmayor partnership immediately added more than 40 years experience in precision manufacturing, and positioned Sustainable Energy in the world's fastest growing market. According to Photon International - a leading industry trade journal - annual installations of grid tie solar PV systems in 2004 exceeded 800 MW, an estimated $6 billion market value.

- Free Power SL, a distributor of integrated solar power systems in Spain, agreed to sole source SUNERGY inverters for all systems distributed by it in Spain providing a unique opportunity to gain traction in the market, and to quickly prove the value of the low voltage alternative and demonstrate its superior thermal performance. The Spanish experience will be invaluable to establishing distribution relationships in other European markets, and to entering the North American market.

- The UL approved design was re-packaged to meet the requirements of the European markets which are characterized by larger scale investor owned projects, where reliability and continuous power output in all weather conditions are critical drivers. Key European supply chain relationships are in place and first production of this product is scheduled for early February, with first production capacity of up to 2,000 units per year at the Benmayor facility in Barcelona.

- The Company continued to invest in enhancing product design focusing on manufactured cost reduction through a reduction in the component count and further simplification of power electronics circuits. It also invested in advancing software controls, using the latest digital signal processing technologies to improve all facets of power quality and adding an integrated data-logger with Ethernet interface for remote monitoring of power output and performance. The Company's engineering group was one of three finalists for the prestigious Alberta Science and Technology Leadership Award which recognizes businesses which have made significant contributions to the science and technology community.

- Although Sustainable Energy maintained key relationships in the fuel cell industry focusing on Japan and has continued to supply fuel cell inverters in reduced volumes, the Company is no longer developing product applications for this sector unless fully funded by customers.

2006 Priorities:

During 2006, Sustainable Energy's main priority is to generate sales revenues from its SUNERGY series of inverters for the grid connected solar PV market.

- Production start-up for the European SUNERGY 5 inverter is still targeted for early February, and the Company expects to have products in the field very shortly thereafter.

- The Company's intends to first expand distribution relationships within Spain, building on its current relationship with Free Power, but to also quickly establish a position within the much larger German market. The Company intends to supply the German and other European markets through its joint venture in Barcelona, Spain.

- The Company aims to offer a North American version of the repackaged SUNERGY inverter by the end of 2006. Although the US market has not been as robust as those in Europe, the recently announced "California Solar Initiative," foresees more than US$2.9 billion in consumer rebates for solar panels for up to 3,000 MW of solar power in the next 10 years. The biggest incentive program for solar energy in the US ever, industry sources believe the California initiative will make the US the most important market after Germany.

- Development of an off-grid capability for the inverter, with funding from NRC-IRAP will enable the Company to add off-grid solar and back-up fuel cell power modules, as new markets during 2006. Significantly, the back up power capability will also position the Company to develop products for the very large battery based back up power markets, including emerging energy storage technologies for which the inverter design is ideally suited.

- Sustainable Energy believes its SUNERGY platform is well matched to the needs of the small wind power industry (less than 30kW) especially grid-connected small wind power systems. During 2006, the Company intends to demonstrate this value with a view to serving this market with the SUNERGY platform.

About Sustainable Energy

Based in Calgary Alberta, 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 - as part of the utility grid of the future.

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.

Contact Information

  • Sustainable Energy Technologies Ltd.
    Michael Carten
    President and CEO
    (403) 508-7177 #111
    (403) 205-2509 (FAX)
    Email: mcarten@sustainableenergy.com
    or
    Sustainable Energy Technologies Ltd.
    James Harris
    Director of Finance
    (403) 508-7177 #112
    (403) 205-2509 (FAX)
    Email: j.harris@sustainableenergy.com
    or
    Sustainable Energy Technologies Ltd.
    Phil Winters
    Marketing and Investor Relations
    (416) 830-6668
    (403) 205-2509 (FAX)
    Email: winters@sustainableenergy.com