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Gold/Mining/Energy : Turbo Genset -- Ignore unavailable to you. Want to Upgrade?

To: speculatingvalue who wrote (26)	7/27/1999 1:38:00 PM
From: speculatingvalue	Read Replies (1) \| Respond to of 47

Turbo Genset Inc. (the "Company") announces that it has today entered into a placing agreement with WestLB Panmure Limited ("WestLB Panmure"), under which WestLB Panmure has agreed to use its reasonable endeavours to place up to 2,408,096 Class "A" shares ("Shares") at a price of 245p (C$5.73) per Share with institutional and other investors. The placing will raise up to 5.75 Pound Sterling million for the Company, net of expenses. Subject to approvals from The Alberta Stock Exchange, the placing is expected to be completed on 17 August 1999. Introduction to the Company The Company, through its UK subsidiary The Turbo Genset Company Limited ("TGC"), has developed and commenced commercialisation of technology relating to small-scale electricity generation based on a permanent-magnet high-speed generator powered by a gas turbine engine. The Company is a corporation incorporated pursuant to the laws of the Province of Alberta, Canada whose principal asset is a 90 per cent shareholding in TGC. The Company's shares are listed on The Alberta Stock Exchange. A dealing facility for the Company's shares has also been obtained on OFEX in the United Kingdom. Technology TGC has developed new technology for small-scale power generation. Its innovation is a high speed, highly compact alternator. TGC has combined this alternator with a small gas turbine to produce a turbo genset, capable of using most forms of combustible gas and oils as fuel. Conventional generators for standby and portable power applications capable of producing up to 50kW typically weigh between one and two tons and use low speed alternators driven by piston engines. A turbo genset that can produce the same power weighs approximately 150 kg. TGC has developed a 50kW unit and has been contracted to deliver a 100kW alternator by 31 August 1999, while the development of a 250kW alternator is planned for the second quarter of 2000. The Directors believe that TGC could develop units producing 1.0MW and above using the current core patented technology. The Placing The placing comprises a private placing of a minimum of 1,500,000 Shares and up to a maximum of 2,408,096 Shares at a price of 245p per Share with institutional and other investors. Under the placing agreement, the Company will pay to WestLB Panmure a placing fee equal in value to the greater of 150,000 Pound Sterling and five per cent of the aggregate subscription proceeds received in respect of the placing shares for which WestLB Panmure has found subscribers, such fee to be satisfied by the issue of Shares at 245p per Share. Any fees payable by the Company to sub-agents in respect of the placing will be paid in cash. The Shares which are subject to the placing will rank pari passu in all respects with the existing Shares. Use of proceeds The Company intends to use the proceeds of the placing for technical development primarily associated with expanding the Group's product range, for the employment of personnel, including technical and marketing personnel, to provide additional manufacturing capacity within TGC and for additional working capital. Prospects for the Group The Group has secured funding from the European Union to support its research and development activities. In addition to increasing the available level of investment, through the projects financed by this funding, the Group has developed relationships with potential commercial partners and has established a network of suppliers and subcontractors who will facilitate future product manufacture. Sales numbers are currently negligible as the Group has focused its efforts on furthering the development of key products. However, in preparation for the commercialisation phase, there has been continuing activity aimed at establishing formal partnerships with companies who have significant presence in specific markets and in relation to specific applications of the Group's technology. Historical expenditures on research and development reflect the Group's efforts to develop the turbo genset product. Achievements to date include the completion of the 50kW turbo genset, incorporating the core turbo generator, power electronics, control system, silencing and packaging. This product is planned to undergo a continuing programme of enhancement aimed at reducing the manufacturing costs and expanding the range of applications. The Group is also expanding its product range through the development of higher power units, such as the 100kW generator. The completion of the 50kW genset product and its planned commercial exploitation, along with the continuing strategic development and the forming of strategic alliances with large industrial partners leads the Directors to view the future with confidence. This press release has been approved for the purposes of section 57 of the Financial Services Act 1986 by WestLB Panmure Limited, which is regulated by the Securities and Futures Authority Limited. This is not an offer of securities for sale in the United States. The shares in the Company may not be offered in the United States absent registration with the US Securities and Exchange Commission or an exemption from registration. Any public offering of Shares to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or any selling shareholders and that will contain detailed information about the Company and its management, as well as financial statements. -30- FOR FURTHER INFORMATION PLEASE CONTACT: Turbo Genset Inc. Professor Colin Besant Chairman and Chief Executive +44 171 594 7045 or WestLB Panmure Limited Charlotte F. Moore (Director) +44 171 220 8414 or WestLB Panmure Limited Dominic Morley (Associate Director) +44 171 860 3956 or Square Mile Communications Nick Oborne +44 171 601 1021 The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.