IRVINE, Calif., April 3 /PRNewswire-FirstCall/ -- Composite Technology
Corporation (CTC) (OTC Bulletin Board: CPTC) a leading developer of high-
temperature, low sag (HTLS) conductors for electric transmission and
distribution lines, announced today that its planned acquisition target EU
Energy plc (EU Energy), has concluded and announced a frame agreement with
Anemos Energy Corporation, to supply 125 DeWind 2 megawatt 60 Hz D8.2 wind
energy turbines for their projects over the next 6 years, with first turbines
to be delivered in 2007. This contract, valued at approximately $275 million,
brings current EU Energy backorders for these D8.2 turbines to approximately
$2 billion for delivery through 2012. Subject to complying with securities
laws and regulations, shareholder approvals and related diligence, CTC
anticipates closing its acquisition of EU Energy in the second quarter of this
year.
EU Energy reported that Anemos Energy Corporation is a renewable energy
project developer of environmentally responsible power generation projects
which utilize renewable resources and produce zero greenhouse gas emissions.
Its objectives are sustainable, long term growth while producing economic
benefit to the regions which are selected for development. Anemos Energy
currently has 8 projects in the planning stages in several Canadian provinces,
ranging in size from single turbine installations to large wind farms of over
100 megawatt capacity, and is actively seeking additional development
opportunities.
EU Energy's announcement quoted: Rob Parsons of Anemos Energy in
commenting said, "We are very pleased with the partnership we are developing
with EU Energy. The reliability in the field demonstrated by EU Energy's
DeWind line of wind turbines was an important consideration for us, and we
were very interested in the technical attributes of the D8.2 update. The
project we have in the most advanced development stage is situated in a
province that has a high proportion of hydro-electric capacity. DeWind's
reliability plus the D8.2's synchronous generation and direct grid connection
will be valued features with the utility in this jurisdiction. We have also
been pleased with EU Energy's willingness to supply machines for any size
project, a marked contrast to some of the other suppliers that have minimum
order or project capacity requirements. We believe that EU Energy's DeWind
product line, its global presence and its line of complimentary energy
products make it a significant partner to have in the renewable energy
industry, and we look forward to a mutually beneficial long term relationship.
CTC's Chairman and CEO, Benton Wilcoxon, has just returned from a week of
meetings with EU Energy in Germany. While there he met with EU Energy
personnel and engineering teams, inspected one of the recent DeWind D8 turbine
installations, toured the manufacturing facilities of a key supplier and met
with existing and prospective EU Energy customers from North America. "This
trip has confirmed to me the wisdom of the board's decision to pursue the
acquisition of EU Energy. Within the industry there is an overwhelming sense
of enthusiasm and appreciation for the superior design and performance
characteristics of this turbine technology. I met with many across a broad
spectrum of this industry and all parties confirm that indeed EU Energy has
raised the bar and truly set a new standard for efficiency and reliability.
Subject to CTC's continued favorable diligence to complete the anticipated EU
Energy acquisition and an aggressive rollout of the EU Energy business plan it
would appear that CTC is on track to capture prospective revenues of $40
million, $352 million, and $756 million in calendar year '06, '07 and '08
respectively."
About EU Energy plc:
EU Energy plc is a Milton Keynes, UK, based alternative energy group. In
July 2005 it acquired DeWind GmbH from FKI plc in the UK. Since this
acquisition, it has developed the market for DeWind turbines worldwide and is
poised to enter the market in the U.S. and Canada with the new DeWind D8.2
60Hz 2 megawatt wind turbine that has a torque converter from Voith, to which
it has exclusive rights for up to 2.6 megawatt wind turbine applications.
DeWind turbines have a recognized track record for reliability. In November
2005, a milestone achievement was recognized by our insurers on the fifth
anniversary of "no gearbox failures," as one of the few wind turbines to have
obtained 100% gearbox reliability. EU Energy markets the DeWind range of
products (1.25 to 2 megawatts) worldwide including in India, Eastern Europe
and certain niche markets. EU Energy prefers to establish assembly plants for
turbines in its local markets. EU Energy's focus is on commercializing
technology for alternative energy using existing and acquired technology to
bring new products to market economically and at the earliest opportunity. For
further information visit our website at: http://www.eunrg.com
About CTC:
Composite Technology Corporation, based in Irvine, California, develops,
manufactures and sells novel products that introduce the advantages of high
performance composite materials to create superior applications for the
generation, transmission and distribution of electrical power. The company's
novel and proprietary Aluminum Composite Core Conductor (ACCC) is a cost
effective solution for the introduction of reserve electrical transmission
capacity into a saturated electrical grid, while reducing operating costs and
in many cases capital costs. The elimination of significant sag at higher
operating temperatures allows users of ACCC to reduce transmission
bottlenecks, span large distances, reduce supporting structures and improve
grid reliability. ACCC is superior to conventional conductors of the same
diameter in many ways, including:
* Replaces existing steel core conductors and increases energy capacity up
to 2 times
* Virtually eliminates sag caused by high load, high-temperature
conditions
* Requires fewer structures along new Rights of Way, reducing construction
costs and time
* Reduces line losses compared with same diameter conventional cables at
same operating temperatures
* Eliminates any bi-metallic corrosion issues
* For further information visit our website at:
http://www.compositetechcorp.com
This press release may contain forward-looking statements, as defined in
the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for
forward-looking statements provided to companies by the Reform Act does not
apply to Composite Technology Corporation (Company). However, actual events or
results may differ from the Company's expectations on a negative or positive
basis and are subject to a number of known and unknown risks and uncertainties
including, but not limited to, competition with larger companies, development
of and demand for a new technology, risks associated with a startup company,
risks associated with international transactions, general economic conditions,
availability of funds for capital expenditure by customers, availability of
timely financing, cash flow, timely delivery by suppliers, or the Company's
ability to manage growth. Other risk factors attributable to the Company's
business segment may affect the actual results achieved by the Company and are
included in the Company's Annual Report filed with the Commissioner on Form
10K for fiscal year ended September 30, 2005.
SOURCE Composite Technology Corporation
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Related links:
http://www.compositetechcorp.com
http://www.eunrg.com
CONTACT:
Investor, James Carswell, +1-949-428-8500, or
Media, Kevin C. Coates, +1-949-428-8500, for Composite Technology
Corporation
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