Tonbridge Power Inc.

Tonbridge Power Inc.

October 26, 2005 12:02 ET

Tonbridge Power Updates Activities in MATL

TORONTO, ONTARIO--(CCNMatthews - Oct. 26, 2005) - Tonbridge Power Inc. (TSX VENTURE:TBZ), controlling shareholder of the Montana Alberta Tie Ltd. ("MATL") project to interconnect the electricity markets of Alberta and the US through a 300 MW transmission line to be operational in 2007, is pleased to release the following progress report. Several key milestones have been achieved in the project with respect to environmental, technical and economic regulatory requirements. These include:

Environmental regulatory requirements:

- The filing, on October 5, of an application for a Presidential Permit to construct and operate the proposed line on with the US Department of Energy;

- The filing of an initial submission with the Montana Department of Environmental Quality for approval pursuant to the Major Facilities Siting Act. A complete filing is expected by end of October 2005;

- Fieldwork is now completed on the environmental studies in Canada and the United States on the three chosen transmission line corridors, and work on the environmental impacts and mitigation studies is almost completed. No native reserves are crossed. The centre line routing has now been established, and final selection has considered factors to avoid population density, influence on irrigated areas, rare and endangered species, lakes and wetlands. The study also demonstrated that there are minimal and acceptable impacts on flora and fauna. A one week study on early spring growth of rare and endangered flora will be required due to possible route changes with no delay to construction; and

- Several public consultations have been held in local regions with no material issues raised.

Technical Requirements

- Initial agreements in principle have been reached with the transmission facility operators on material elements and parties and we are now proceeding to definitive agreements.

Engineering Procurement and Construction activities

- The confirmation, on October 7, with ABB to order a phase-shifting transformer for delivery mid next year and to pay a required deposit. The phase-shifting transformer is one of the larger capital items with long lead time required for manufacturing; and

- The selection of an optimized 'centre-line' for the transmission line routing has been finalized after considering numerous technical, environmental and cost optimizations;

Selling the Remaining Capacity

- Signed a contract with OATI who will implement an "OASIS" (Open Access Same-Time Information System) to market the transmission capacity available on MATL's line continuously "online" to dozens of US and Canadian power shippers. This system meets US Federal Energy Regulatory Commission (FERC) standards and is currently used widely by several hundred transmission operators and energy shippers to provide efficient access to power grids and schedule transmission throughout North America on an hourly basis; and

- All the remaining capacity therefore will be sold on the OASIS system, which will be available as a service in Alberta for the first time to access US electricity markets.

Tonbridge Power CEO, Johan van't Hof, stated, "I am very pleased with the continued progress our team is making on many fronts. Although the timing of receipt of all the required permits cannot be accurately forecasted, we seem to be staying on course and on budget. I look forward to further milestones being achieved in the months ahead to meet our objective of going into commercial operation in the first quarter of 2007."

Tonbridge Power Inc. is a Toronto-based investor in power projects, whose principle asset is a controlling 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".

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