Turbo Power Systems Inc.

Turbo Power Systems Inc.

October 20, 2006 02:01 ET

Turbo Power Systems: New Gateshead Factory

CALGARY, ALBERTA--(CCNMatthews - Oct. 20, 2006) - Turbo Power Systems (TSX:TPS) (LSE:TPS), the innovative electrical machines and electronics systems provider, is pleased to announce that its power electronics division has agreed terms on a new 40,000 sq.ft factory in Gateshead.

The Company has made significant sales progress in its innovative high-speed
motor/generator and power electronics technology and has seen continued order book growth, winning a number of new contracts with major industrial customers in the rail and aerospace industries. This strong growth necessitates the need for larger premises in the north-east of England.

The new facility is adjacent to the A1(M) and only a few miles from TPS's existing premises. The site will provide capacity for planned growth over the next five years. The move will take place in early 2007 when the Company's existing premises will be vacated.

TPS's move to the new facility is being assisted by One NorthEast, the Regional Development Agency dedicated to the region's sustainable development. One NorthEast has awarded a grant of up to Pounds Sterling 550,000 towards the total cost of the move. The grant will be dependent on the level of employment creation and the total investment made by the Company. It is expected that TPS's expansion will create up to 100 jobs for the region over a three to four year period.

Michael Hunt, chief executive of Turbo Power Systems, commented: "The move into larger premises allows us to fulfill our growing order book. Furthermore, the ability to design the factory layout around our new programmes will lead to greater efficiency in production. Staying in the Gateshead area was important as it allows us to maintain our highly skilled workforce and will enable us to tap into the significant local skills pool as we continue to grow."

Ian Williams, One NorthEast Head of Business Products, said: "Turbo Power Systems is an innovative company with blue chip clients and it is important for the local area and the region that it remains in the North East. It's move to a new Gateshead base will create high quality jobs in engineering, manufacturing and research and development".


About Turbo Power Systems

Turbo Power Systems develops innovative products for power generation and power
conditioning. The Group was established in 1993 as a spin-off from Imperial College, London and was floated on the London stock exchange in July 2000 and soon after obtained a secondary listing in Toronto. In July 2001, the Group acquired Intelligent Power Systems Limited (I-Power) specialising in power electronics.

About Power Electronics

Power electronics products take a range of power inputs and condition them to achieve outputs of precisely defined characteristics for applications such as motor drives for industrial and aerospace applications, industrial lasers, Ultra Violet sterilization systems and railway power electronics systems.

About One NorthEast

One NorthEast is the Regional Development Agency (RDA) set up in April 1999 to help the people of the North East create and sustain jobs, prosperity and a higher quality of life.

RDAs were set up by Government to promote sustainable economic development in England. They are business led. Their main tasks are to help the English regions improve their relative economic performance and reduce social and economic disparities within and between regions. The regional approach to economic development allows businesses and communities to formulate solutions that are appropriate for the particular circumstances and strengths.

One NorthEast is harnessing all the physical and human resources of the region, in both rural and urban communities, to accelerate economic development and regeneration, promote business growth and efficiency, boost investment and increase competitiveness, generate thousands of new jobs and develop the work skills of the people living here to meet the needs of a changing economy.

Web site: www.onenortheast.co.uk

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 Power Systems Inc.
    Michael Hunt
    Chief Executive
    +44 (0)20 8564 4460
    Turbo Power Systems Inc.
    Stephen Sadler
    Chief Financial Officer
    +44 (0)20 8564 4460
    Website: www.turbopowersystems.com
    Gavin Anderson & Company (PR)
    Ken Cronin
    +44 (0)20 7554 1400
    Gavin Anderson & Company (PR)
    Michael Turner
    +44 (0)20 7554 1400