Magnetek to Purchase Eighty, 5kW VRB Energy Storage Systems for Telecoms Market Applications
Tuesday March 21, 4:38 pm ET
VANCOUVER, March 21 /CNW/ - VRB Power Systems Inc. (TSX-V: VRB - News) is pleased to announce that Magnetek's Telecom Power Systems Group ("TPS") has entered into a Letter of Intent ("LOI") to purchase eighty 5kW VRB Energy Storage Systems to be sold to telecom market operators in the U.S.
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As well, under the terms of the LOI, VRB Power has also agreed to its intent to use the assembly and system integration services of TPS for an additional 50 VRB-ESS Units to be marketed and sold by VRB Power directly.
This purchase commitment follows the evaluation of VRB Power's technology by TPS and joint development initiatives outlined in the original Memorandum of Understanding between the parties. As part of the joint efforts, VRB Power will supply the core-technology for the VRB-ESS units, which will generally include the overall design, cell stacks, electrolyte, tanks and the balance of the battery system, whereas TPS will be responsible for supplying the electronics, including the rectifier and controller, and assembling and integrating the components into finished VRB-ESS units. TPS will market and sell these VRB-ESS units to telecom market operators in North America.
Tim Hennessy, CEO of VRB Power said "The telecommunications sector is one of the largest and fastest growing global markets for our storage systems. A fundamental component in every cellular network is the battery backup system and its reliability is critical. It is estimated that there are in excess of 150,000 cellular phone towers in North America and 120,000 in Europe, with the global battery replacement market for telecommunications applications estimated to exceed US $800 million annually."
"Existing backup systems incur high maintenance and replacement costs whilst reliability is also a constant concern. The VRB-ESS provides a price competitive solution with more than double the life of existing lead acid backup systems and very low maintenance costs. It is also the most environmentally friendly of all the energy storage systems, a major factor especially given the recently mandated recovery targets for lead acid batteries set by the European Union from 2010."
"Our relationship with TPS is working well and this initial purchase commitment is the culmination of significant joint efforts over the past 12-18 months. We anticipate a growing order book from this relationship. We believe that TPS's design, integration skills and channels to market very much complement our expertise in our core technology and that this strategic relationship is well poised to capture a significant share of the backup systems market in the Telecoms sector," concludes Hennessy.
"In light of the recent increases in the cost of lead acid batteries coupled with the industries' desire to find a viable alternative, the TPS and VRB Power initiative will offer a superior, cost effective backup power solution for our customers," notes Jack Conn, Magnetek's Vice President of Sales and Marketing for Telecom Power Systems.
About Magnetek's Telecom Power Group
A global leader in advanced digital power solutions, Magnetek provides an array of digital power control systems for telecom, datacom and Internet service providers, utilities, government agencies, and original equipment manufacturers. They include rack- and cabinet-mounted DC power plants; modular walk-in enclosures and lightweight shelters; mobile "Cells on Wheels" (COWs) and "Cells on Light Trucks" (COLTs), and associated power infrastructure; NEBS-certified stand-by power accessories; and a variety of power products and systems that have remote monitoring and control capability. Magnetek also designs and manufactures digital power control products and systems used in a variety of other applications requiring highly reliable, precise, energy-efficient power, including distributed power generation, industrial controls, medical electronics, semiconductor processing, consumer products, transportation, and information technology. The Company operates manufacturing and research facilities in North America, Europe and Asia, and had revenues of $242 million in its 2005 fiscal year, ended on July 3, 2005. More information about Magnetek is available at magnetek.com. Magnetek is publicly traded on the New York Stock Exchange ("MAG")
About VRB Power
Headquartered in Vancouver, Canada, VRB Power Systems Inc. is an energy storage technology developer, manufacturer and systems integrator utilizing the patented VRB Energy Storage System ("VRB-ESS(TM)"). The VRB-ESS is a long life, cost effective, low maintenance, efficient technology that allows for the scalability of power and storage capacity independently. It is focused towards stationary applications and can economically store and supply large amounts of electricity on demand. The VRB-ESS is particularly beneficial to renewable energy providers, utilities and end users through the ability to "inventory" electricity, allowing for the optimal match of supply and demand, as well as providing improved power quality, reliability and energy efficiency.
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, Remote Area Power Supplies, backup power supplies for utility sub-station and telecommunication sites, capital deferral models for utilities and load levelling (peak shaving). 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 or cadmium.
Warning: 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 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.
Simon Clarke
Executive Vice President, Corporate Development
For further information
VRB Power Systems Inc. at (604) 697-8820
Investor Relations at (604) 697-8835
Or visit the company's web site at: www.vrbpower.com
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