RICHMOND, BC, March 6 /PRNewswire-FirstCall/ - VRB Power Systems Inc.
(TSX-V: VRB) announces that the California Energy Commission ("CEC") and
the Sacramento Municipal Utility District ("SMUD") awarded funding towards
the purchase of a 20kW x 9hr VRB Energy Storage System (VRB-ESS(TM)) to be
installed at a major U.S. telecoms service provider's telecommunication
site in Sacramento, California. The system will provide 3 hours of back-up
power and additionally power the site for 6 hours during peak power times,
shifting demand on the site from peak to off peak times. The total contract
value to VRB Power from this project will be approximately US$300,000 which
will be borne equally by the CEC, SMUD and the customer.

    The ability to provide both of these functions from the same system is
a unique characteristic of VRB Power's flow battery technology. Shifting
demand from this site to off peak times will reduce peak demand on the
local grid and potentially reduce the customer's electricity charges by
switching to Time of Use versus standard rate charges.

    This project has attracted support and funding from CEC because of the
potential to roll out similar systems in many other sites in California
with the intention to shift a significant portion of the State's peak
demand to off peak times which is directly in line with California's Energy
Policy goals.

    "This project demonstrates the economic value of energy storage and the
Energy Commission is pleased to be funding this endeavour," said Energy
Commissioner Art Rosenfeld. "Additionally, with the technology to shift
electrical load from peak to off peak, it has the potential to reduce
demand on California's electrical transmission grid at times when we most
need it," added Rosenfeld.

    "Shifting peak demand to off peak times is fully in line with our
corporate goals and is in the best interests of generators and consumers
alike," said Cliff Murley of SMUD. "We believe that there is significant
potential to roll out energy storage in a number of key sites across our
grid and beyond."

    "We are very pleased with this development," said John Davis, Director
of Sales for VRB Power. "This sale follows evaluation of our technology by
this customer and the ability of our products to fulfill other roles in
addition to providing reliable, long-life back-up power. The VRB-ESS offers
customers a much more versatile product which can also generate revenues
for them and separates us from our competitors."

    "In on grid sites, such as this one in Sacramento, electricity is
substantially more expensive at peak times than at off peak times. We can
significantly reduce the customer's electricity charges by using the
VRB-ESS to run the site during peak demand and then re-charging it at off
peak times. In off grid sites we can significantly reduce diesel
consumption by using the system to run the site for several hours each day.
In both examples the VRB-ESS also serves to provide reliable,
uninterruptible power should the main source of power fail."

    "These applications open up a large number of sites within the overall
telecoms market where we believe only VRB Power can provide this solution.
The customer has dozens of similar sites across California where our
systems could potentially be deployed and hundreds of similar sites across
North America. Additionally, other major telecoms service providers are in
a similar position. The ability to shave peak demand also provides benefits
to the local utilities, local electricity grids and ultimately consumers.
We thank the CEC, SMUD and the customer for their support in this project
which we believe will open up many opportunities for our products,"
concluded Davis.

    About SMUD

    SMUD has been providing Sacramento County (and a small part of Placer
County) with a reliable source of electricity at competitive rates for over
60 years. As the sixth largest publicly owned utility in the country in
terms of customers served, SMUD's innovative energy programs are known
throughout the state, nation and world. SMUD's purpose is to provide
solutions for meeting customers' electrical energy needs. SMUD's vision is
to be a leader in customer satisfaction and a positive force in promoting
community benefits.

    About the CEC

    California is the world's fifth largest consumer of energy. Today,
California is a world leader in electricity created by renewable energy
resources and has been at the forefront in energy efficiency. The renewable
energy industry can be credited with providing 30,000 jobs and generating
$2 billion in tax revenues for the state. Directing how such a nation-state
uses its energy has been the purpose of the California Energy Commission
for more than a quarter of a century.

    Because of the state's stringent energy efficiency standards,
California is the most energy efficient state in the nation. For the past
30 years, per capita electricity consumption in California has remained
flat despite an increasing state population. California's building and
appliances efficiency standards have saved more than $56 billion in
electricity and natural gas costs and avoided the need to build 15 large
power plants saving money and reducing the associated greenhouse gas
emissions.

    About VRB Power

    Headquartered in Vancouver, Canada, VRB Power Systems Inc. is an energy
storage technology developer which is marketing, selling and manufacturing
products utilizing the patented VRB Energy Storage System ("VRB-ESS(TM)").
The VRB-ESS can economically store and supply large amounts of electricity
on demand and is focused on stationary applications. It is a long life,
cost effective, low maintenance, efficient technology that allows for the
scalability of power and storage capacity independently. The VRB-ESS is
particularly beneficial to renewable energy providers, utilities and end
users through its ability to "inventory" electricity, allowing for the
optimal match of supply and demand.

    The VRB-ESS is well suited for a variety of applications. Enabling the
provision of "firm" capacity from intermittent renewable generation such as
wind and solar; more cost effective and efficient generation of electricity
in remote areas; capital deferral for utilities; and load levelling (peak
shaving) applications. The VRB-ESS is also capable of providing backup
power solutions including applications for utility sub-stations and
telecommunication sites. The VRB-ESS is characterized by having the lowest
ecological impact of all energy storage technologies and is unlike most
other conventional energy storage systems that rely on substances such as
lead or cadmium.

    Caution regarding forward-looking statements: VRB Power's press
releases may contain forward-looking statements. These statements are based
on management's current expectations and beliefs which are subject to a
number of known and unknown risks and uncertainties (including, but not
limited to, the risk factors described in VRB Power's Annual Information
Form filed with the British Columbia Securities Commission and available at
http://www.sedar.com) that could cause actual results to differ materially from
those expressed or implied in our forward-looking statements. The Company
does not assume any obligation to update any forward-looking statements
contained in this press release.



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

    Vince Sorace
    President

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