IRVINE, Calif., April 6 /PRNewswire-FirstCall/ -- Composite Technology
Corporation (CTC) (OTC Bulletin Board: CPTC) announced today that its planned
acquisition target, EU Energy plc (EU Energy), has concluded and announced a
frame agreement with Midwest Wind Energy Finance LLC (MWEF) to supply
170 DeWind 2 megawatt 60 Hz D8.2 wind energy turbines. The turbines are
destined for Midwest projects over the next 6 years, with the first
20 turbines to be delivered in 2007 and an additional thirty per year over the
following 5 years.
The frame agreement, valued at approximately $365 million, brings current
EU Energy backorders for D8.2 turbines to approximately $2.36 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: "We are pleased to enter into a long-term partnership
with EU Energy," stated MWEF President, Ken Valley. "Their recognition of and
responsiveness to the needs of smaller projects, as well as their leading
technical capabilities, were key factors in our decision to use the DeWind
turbines. Also, having EU Energy as one of our major suppliers guarantees that
turbines are available for our community-based projects and gets them
completed sooner. Furthermore, it keeps smaller projects competitive since the
DeWind cost-saving turbine design produces energy at a lower cost per MW. All
of this makes our agreement with EU Energy an exceptional opportunity for land
owners, developers and municipalities throughout the Midwest and the country."
CTC's Chairman and CEO, Benton Wilcoxon stated, "This development further
emphasizes the strong demand for clean wind powered energy in the electricity
generation market, in particular EU Energy's new DeWind D8.2 based upon the
highly reliable design of the D8 model and the Voith WinDrive torque converter
with a synchronous generator connected directly to the grid. We very much look
forward to being a leader in providing North America the means for converting
a large portion of its electricity production to renewable sources."
EU Energy reported: Midwest Wind Energy Finance LLC is a specialty finance
firm headquartered in Minneapolis that provides hard-to-find equity and
financing for small-scale ($2 million - $50 million) renewable energy
projects. Along with its partners, MWEF provides the capital that enables
projects to progress from various development stages to production. MWEF's
goal is to help ensure the majority of investment dollars remain in the local
communities. Currently, MWEF has a number of projects in various stages
throughout farming communities in the Midwest and the country.
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: 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: http://www.compositetechcorp.com
For Investor Relations Contact: James Carswell, (949) 428-8500
For Media Relations Contact: Kevin C. Coates (949) 428-8500
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
CONTACT:
investors, James Carswell, or press, Kevin C.
Coates, both of Composite Technology Corporation, +1-949-428-8500
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