Sustainable Energy Technologies Ltd.: Nine Month Results and Corporate Update

TORONTO, ONTARIO--(Marketwire - Aug. 30, 2011) - Sustainable Energy Technologies Ltd (TSX VENTURE:STG) ("Sustainable Energy") has filed its Interim Consolidated Financial Statements for the nine month period ending June 30, 2011 along with Management's Discussion and Analysis thereof. The Consolidated Financial Statements and the Management Discussion and Analysis thereof are available on SEDAR at www.sedar.com and on our website at www.sustainableenergy.com

Highlights:

Product sales revenues for the nine months were $2.82 million; more than double revenues for the same period last year. Q3 revenues of $1.1 million were up 40% over Q2. Product shipments for Q3 were up 45% over Q2, and up 81% from Q1, 2011. Product margins for the inverter are averaging approximately 24% and will continue to improve as volume increases, and as the Company continues to execute on its cost reduction plan. Product margins for balance of system peripheral components are averaging 22%.

We have completed the development of our 3^rd generation platform which will reduce manufacturing cost an additional 15% - 20%. We expect to be in production of the 3^rd generation product in Europe before calendar year end and to have a UL/CSA certified product for North American markets in calendar Q1' 2012.

During Q3, the Company allocated more resources to the US and Europe with very positive responses from national distributors and experienced system integrators. System integrators see the SUNERGY inverter as a lower cost and more reliable approach to "parallel solar" than micro-inverters and power optimizers. Systems integrators were especially attracted to the SUNERGY's unique field replaceable electronics which materially simplify and reduce the cost of customer support.

We increased deliveries to tenKsolar and its distributors during Q3 and into July and August. Demand for tenKsolar's product is growing in the US and Europe and indications are that tenKsolar will meet and likely exceed the 23 MW committed during the next 12 months. This is an important relationship for both companies which have a cost sharing agreement to optimize our inverter for the tenKsolar product platform.

Sustainable booked approximately 15% of its target segment of the Ontario market before the market slowed in Q3 due to delays in hookups. This segment now has a backlog more than 200MW (estimated $80 - $100 million value) of committed contracts approved by the Ontario Power Authority which are awaiting hook-up. The application backlog for contract approval represents an additional 123 MW with demand accelerating to an average of 19MW per month. As the only Canadian inverter supplier in the market, we are very well positioned for an anticipated resumption of growth following a Provincial election October 6, 2011.

In Europe we have serious interest from inverter manufacturers to add a "parallel" inverter to their product line as the ideal product response to a growing threat from micro-inverters and power optimizers. This is an important dynamic for Sustainable Energy which has the potential to quickly create GigaWatt scale demand. The Company's manufacturing model enables it to supply inverters under private label or alternatively to supply only the core power electronics module allowing inverter companies to manufacture their own "parallel" string inverter.

In Europe the Company has also recently experienced unsolicited demand for the SUNERGY inverter from several leading thin film module manufacturers. These companies see our inverter as a means of making thin film more competitive in rooftop applications and for building integrated solar. Our recently announced agreement with Würth Solar, the solar division of German industrial giant Würth AG, to bundle the Company's products with its high efficiency CIS product is the first contract.

We believe that the Company is positioned for growth in Europe and the United States as well as in Ontario.

Over the next year we expect demand for our product to come from three main sources.

• Direct product sales to systems integrators and through national distributors in North America and Europe. Our current demand forecast has this segment contributing approximately 32 MW with potentially higher numbers depending on the rate of growth in Ontario beginning this fall. We estimate that the base case numbers would produce $12.8 million in top line revenues.
• Private label product sales to module manufacturers and system integrators which are delivering integrated solar PV bundles and using the module level power optimization as a value added differentiator. Included in this category are announced agreements with tenKsolar (US) Changetec (Germany) Würth Solar (Germany) and Salicru (Spain and France). Our 12 month demand forecast for this segment is for 36MW with potentially much higher numbers from tenKsolar. Based case numbers would represent between $12– $14 million in top line revenues.
• Sales of the core power electronics module to European inverter manufacturers enabling them to quickly add a competitive product response to micro electronics that is coherent with their overall product line and distribution model. This initiative is not far enough progressed to make a meaningful demand forecast.

The reader is cautioned that the revenue forecasts are highly dependent on market pricing and foreign exchange values which are volatile in addition to our ability to achieve the targeted volumes.

About Sustainable Energy:

Sustainable Energy (www.SustainableEnergy.com) is Canada's solar inverter company. The Company's patented inverter technologies are a breakthrough in power inverter design and capabilities for all forms of distributed generation and smart grid applications. The SUNERGYTM inverter is the industry's only grid-interactive solar inverter which enables a "parallel" solar PV system architecture in higher power ratings at a cost and serviceability factor that is comparable to conventional inverters in the market. Sustainable Energy's technologies are the subject of multiple patents issued by and pending with the Canadian and US Patent Offices. Follow us on Twitter @SunergySTG

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, we include: statements concerning the impact of our technology on solar PV system performance; statements concerning demand for products in several different markets and statements concerning emerging market dynamics in the inverter market. The sales cycle for string inverters is 8 – 10 weeks which makes demand forecasts more risky. Although our demand forecasts assume a level of price erosion this is also volatile and will impact revenues and profitability. We have also made forecasts of manufactured cost reductions which are dependent on reaching engineering targets as well as commodity pricing especially steel and copper.

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.

Readers are also directed to the Risk Factors section of the Company's current Annual Information Form which may be found on its website or at www.sedar.com 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.