Tonbridge Power Inc.
TSX VENTURE : TBZ

Tonbridge Power Inc.

May 04, 2009 20:12 ET

Tonbridge Power Inc. Announces Financial Results

TORONTO, ONTARIO--(Marketwire - May 4, 2009) - Tonbridge Power Inc. (TSX VENTURE:TBZ) ("the Company") announced financial results for the year ended December 31, 2008. The Company is the 100% controlling shareholder of Montana Alberta Tie Ltd. ("MATL"), which is developing a 300 MW, 230kV transmission line to interconnect the electricity markets of Alberta and the US (the "MATL Line"). The Company's complete financial statements, management discussion and analysis and annual information form can be viewed on SEDAR at www.Sedar.com or on the Company's website at www.tonbridgepower.com.

Significant Regulatory Highlights - January 1, 2008 to Current Date

- All required material permits to construct and operate a power line between Canada and the United States were received;

- On March 20, 2009, the permit from the National Energy Board, was extended, which now permits the Company to start construction prior to December 31, 2009;

- A Permit to Construct and License to Operate a power line was received from the Alberta Energy Utilities Board ("AEUB") on August 12, 2008, notwithstanding an outstanding appeal of the AEUB permit by certain landowners which was heard by the Alberta Court of Appeal on January 23, 2009. A decision by the Court of Appeal is pending;

- A Presidential Permit was received from the US Department of Energy ("DoE") on November 17, 2008 to build an international power line. This required prior receipt of approvals or sign-offs from the State Department, the Department of Defense, the Federal Aviation Administration, the Department of Homeland Security and the Environmental Protection Agency;

- The Company received the Montana Major Facilities Siting Act permit (a Certificate of Compliance from Montana Department of Environmental Quality ("MDEQ") on October 22, 2008 authorizing the construction of MATL's 300 MW, 230kV merchant transmission line in Montana;

- The MDEQ permit was appealed by four landowners. All such appeals were dismissed in March 2009 by the Montana Board of Environmental Review;

Significant Operational & Financial Highlights - January 1, 2008 to Current Date

- Executed an Engineering Procurement and Construction contract with Rocky Mountain Contractors (a subsidiary of MDU Construction Services Group) in October, 2008 to redesign and build the MATL Line for US $118M;

- A letter of intent (originally executed on November 26, 2008) was extended on April 24, 2008, whereby NaturEner would subscribe for redeemable preferred shares in MATL, which could provide additional financing prior to and for construction of up to US $25M;

- A letter of intent with NaturEner (originally executed on September 3, 2008) was extended on April 24, 2008 whereby NaturEner would prepay up to US $35M in revenues for years 11 to 25 under its power transmission rights agreement with MATL to ensure adequate financing for construction and commissioning of the MATL Line;

- The Company applied on March 9, 2009 to the Western Area Power Administration, an agency of the DoE, for loan financing under the US Stimulus Bill as an alternative to the Company's current construction financing strategy;

- A commitment letter was executed on December 4, 2008 with the New York branch of NordBank for a US $99M senior credit facility;

- No executive bonuses were paid in 2008;

- Directors have agreed to defer payment of directors' fees earned in 2008; and

- A net loss of $(18.2M) was incurred for the twelve months ended December 31, 2008, of which $(11.5M) relates to non-cash accounting entries; and

- On a per share basis, the net loss for the year was ($0.077) per share. Of this amount, ($0.048) relates to non-cash accounting entries.

"The Company is ready to begin construction of the Project on completing senior financing arrangements" said Johan van 't Hof, President and CEO.

Tonbridge Power Inc. is a Toronto-based developer of electrical transmission assets, whose principal asset is a 100% interest in Montana Alberta Tie Ltd. Shares of the Company became publicly listed on the TSX Venture Exchange on July 7, 2005 and are traded under the symbol "TBZ".

Should you wish to receive news via email, please email info@tonbridgepower.com and specify "company news."

Cautionary Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements", within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements include, but are not limited to, statements with respect to future revenues. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "should", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: the conditionality of the revenue contracts, risks related to the financing or construction of the transmission line; risks related to the performance of parties contracting for transmission capacity; delays in obtaining governmental approvals, permits or project financing or in the completion of development or construction activities, requirements for additional capital, government regulation, environmental risks as well as those factors discussed in the section entitled "Risk Factors" in the Company's Annual Information Form for the year ended December 31, 2005, available on www.sedar.com. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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