VRB Power Systems Inc.

June 28, 2005 11:15 ET

VRB Power To Raise Between $10-$15 Million With Syndicate Led By Sprott Securities Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 28, 2005) - VRB Power Systems Inc. (TSX VENTURE:VRB) ("VRB Power" or the "Company") is pleased to announce that it intends to raise between $10 to $15 million CAD between $0.75 - $0.80 per share on a best-efforts agency basis through a syndicate of underwriters led by Sprott Securities Inc. (additional members consisting of Loewen, Ondaatje, McCutcheon Ltd. and Fraser Mackenzie Ltd.).

This institutional financing will be structured as a private placement by way of special warrants, each such special warrant being exercisable into one common share of VRB Power. The Company will use its best efforts to obtain a receipt for a final short form prospectus within 60 days of closing of the financing which will qualify for sale the common shares issued pursuant to the financing. In the event that such date is not met by the company, each special warrant will thereafter entitle the holder thereof to receive, at no additional cost, 1.1 common shares (instead of one common share).

"This funding will enable the Company to finalize commercialization and mass production of its 5kW VRB-ESS and capitalize on the significant market opportunities for energy storage. In addition, the proceeds from this financing will be used to complete mass production of the recently acquired Sumitomo 42kW cell stacks, for expanded sales and marketing efforts and for general working capital needs" states Tim Hennessy, CEO of VRB Power.

Commissions will be paid to the members of the syndicate in accordance with the rules and regulations of the TSX Venture Exchange. Closing is anticipated to occur on or about July 12, 2005 and is subject to the approval of the TSX Venture Exchange.

About VRB Power

Based in Vancouver, B.C. Canada, VRB Power is an electrochemical energy storage company that has commercialized the patented Vanadium Redox Battery Energy Storage System ("VRB-ESS") and has acquired the intellectual property rights comprising the Regenesys Energy Storage System ("RGN-ESS"). Both technologies represent a new enabling capability to effectively store electricity on demand. They can provide direct economic benefits to utilities and end users in terms of improved power quality, reliability and energy efficiency. They are particularly well suited to load levelling (peak shaving), electrical power arbitrage, grid stability enhancements, capital deferment and Remote Area Power Supply (RAPS) applications. The company is primarily focused on stationary power sources such as utility substations, commercial buildings, production facilities, telecommunication operations, cellular radio sites, and renewable resource generation such as wind farms - creating the ability to provide "firm" capacity. As a "green" technology, the VRB-ESS is characterized by having a low ecological impact and is unlike most other conventional energy storage systems that rely on toxic substances such as lead, zinc or cadmium. VRB Power is publicly listed on the TSX Venture Exchange ("VRB") and the OTC Pinksheets ("VRBPF").

Warning: The Company relies upon litigation protection for "forward-looking statements"

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

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