Turbo Power Systems Inc.
TSX : TPS
AIM : TPS

Turbo Power Systems Inc.

October 10, 2008 02:00 ET

Turbo Power Systems ('TPS' or 'The Company') Announces Termination of Contract With Hamilton Sundstrand

CALGARY, ALBERTA--(Marketwire - Oct. 10, 2008) - Turbo Power Systems Inc. (TSX:TPS) (AIM:TPS), the innovative electrical machines and electronic systems provider, today announces that it has reached an agreement with Hamilton Sundstrand Corporation under which the two companies will work together to transition Turbo Power Systems Inc.'s development and production of the Ram Fan power controllers which will be used in the power electronics cooling system of the Boeing 787 'Dreamliner' to Hamilton Sundstrand Corporation.

As part of the transition agreement, Turbo Power Systems Inc. will continue to provide technical resource and assistance to Hamilton Sundstrand Corporation. Upon successful transition of the Ram Fan power controllers, the existing contract will be terminated.

The original agreement, which was announced in July 2006, provided for production revenues in excess of US$26 million over the production life of the aircraft, at an expected rate of approximately US$1.6 million per annum.

In transferring the engineering design and know-how to Hamilton Sundstrand, TPS will eliminate the requirement for any further expenditure in both prototype testing and design refinement as the product completes its qualification testing.

Commenting on the agreement reached, Paul Summers, CEO of Turbo Power Systems said : "I am pleased that we have managed to reach an amicable agreement with Hamilton Sundstrand over the future of the Ram-Fan Controller programme, which removes our potential exposure to additional development expenditure and cash outflows.

"Although the Company will now exit this contract, the knowledge gained on this programme together with our more established Eaton Aerospace contract still gives the Company the option of addressing new aerospace opportunities that are compatible with our business objectives and provide a timely return on investment."

NOTES TO EDITORS

About Turbo Power Systems

Turbo Power Systems Inc (TSX:TPS) (AIM:TPS). is a leading UK based designer and manufacturer of innovative power solutions. The Group's products are all based on its core technologies of power electronics and high speed motors and generators and are sold into a number of market sectors including aerospace, rail, and various industrial sectors. The Company's products provide improved efficiency and reduced energy consumption compared to existing technologies.

Turbo Power System's existing customers include bluechip companies such as Bombardier, The National Rail Equipment Company, Eaton Aerospace and Lotus.

Contact Information

  • Turbo Power Systems
    Paul Summers
    Chief Executive Officer
    +44 (0)20 8564 4460
    or
    Turbo Power Systems
    Richard Bayliss
    Finance Director
    +44 (0)20 8564 4460
    or
    Gavin Anderson & Company (PR)
    Ken Cronin
    +44 (0)20 7554 1400
    or
    Gavin Anderson & Company (PR)
    Michael Turner
    +44 (0)20 7554 1400
    or
    KBC Peel Hunt
    Oliver Scott
    +44 (0)20 7418 8900
    or
    KBC Peel Hunt
    Nicholas Marren
    +44 (0)20 7418 8900