Turbo Genset Inc.

Turbo Genset Inc.

November 01, 2005 02:00 ET

Turbo Genset Inc.: Agreement for the Design and Manufacture of High Speed Motor and Variable Frequency Drive Electronics

CALGARY, ALBERTA--(CCNMatthews - Nov. 1, 2005) - Turbo Genset (TSX:TGN)(LSE:TGN) has entered into a binding Memorandum of Understanding with a major international Capital Equipment Manufacturer, with manufacturing plants in North America, Europe and China, for the design and manufacture of a range of integrated high speed motor and variable frequency drive systems in the size range of 200kW to 500kW.

The equipment, intended for production release at the end of 2006, is planned to replace sub-assemblies currently incorporated into the manufacturer's existing equipment design, improving overall system efficiency and performance.

The agreement, which is subject to the satisfactory completion of the prototype trials, includes a commitment for the purchase of 500 systems to meet the anticipated volume requirements in the initial two years of production. The value of this initial commitment is expected to be in excess of USD $12,500,000, with deliveries commencing in 2007.

The high speed motors, which are based on the same core technology as used in Turbo Genset's generator products, will be designed and manufactured at Heathrow using Turbo Genset's design, production and test facilities.

The drive electronics will be designed and manufactured at the Group's I-Power division in Gateshead.

Michael Hunt, CEO said "Turbo Genset has recently announced a number of contracts which have demonstrated the benefits of our strategy to build a more balanced business, deploying our generator, motor and power electronics technology across a range of market sectors.

This agreement represents a significant commercial achievement and is particularly pleasing in that it uses the combined skills of both manufacturing divisions and will deliver ongoing revenue to the Group."

Forward Looking statements

This news release contains forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events, or performance, and underlying assumptions and other statements that are other than statement of historical fact. These statements are subject to uncertainties and risks including, but not limited to, the ability to meet ongoing capital needs, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition, the need to protect proprietary rights to technology, government regulation, and other risks defined in this document and in statements filed from time to time with the applicable securities regulatory authorities.

Contact Information

  • Turbo Genset Inc. - United Kingdom
    Stephen Sadler
    Chief Financial Officer
    +44 (0)20 8564 4460
    Gavin Anderson & Company (PR)
    Ken Cronin
    +44 (0)20 7554 1400
    Gavin Anderson & Company (PR)
    Michael Turner
    +44 (0)20 7554 1400