VRB Power Signs Telco Power Development Pact with Magnetek Inc.
Wednesday April 7, 4:40 pm ET
VANCOUVER, April 7 /CNW/ - VRB Power Systems Inc. ("VRB Power") is pleased to announce the signing of a Memorandum of Understanding with Magnetek Inc., Telecom Power Group ("Magnetek") (NYSE: MAG - News) a global leader in advanced digital power solutions, to jointly develop a battery replacement product utilizing the Vanadium Redox Battery Energy Storage System ("VRB-ESS") technology. Under this Agreement, VRB Power will provide Magnetek with the base technology, and Magnetek will provide the product design, integration and channels to market for the telecommunications industry. This will enable VRB Power and Magnetek to offer an alternative to traditional lead acid battery technology with a reliable and environmentally safe energy storage product for switching centers and wireless base stations.
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"Telco service providers are expanding their networks and planning to replace aging battery systems in many existing sites," notes Jack Conn, Magnetek's Vice President of Sales for Telecom Power Systems. "VRB-ESS technology promises to enable these carriers to lower their operating expenses and apply the savings to revenue-generating services."
Tim Hennessy, CEO of VRB Power states: "The Telecom sector is one of the largest and fastest growing global markets for the VRB-ESS. A fundamental yet non-core component in every cellular network provider is the battery backup system and its reliability. Existing backup systems incur high maintenance and replacement costs whilst reliability is also a constant concern. The VRB-ESS provides a solution which more than doubles the life-time of existing backup systems, has very low maintenance costs, will be price competitive and is environmentally friendly.
By allowing the network providers the ability to reduce their battery backup maintenance costs and enhance the systems reliability, it creates direct financial benefits as well as the capability to actively load shift, providing a future value opportunity to reduce energy costs. Together with Magnetek's design, integration skills and channels to market, this strategic relationship is well suited to capture a significant share of the backup systems market in the Telecom sector."
NEBS and UL testing of the new system is expected to commence early in the third calender quarter, with commercial products anticipated for release in late 2004. Initial installations are expected to range from Mobile Telecom Switching Offices (MTSO's) to remote wireless cell sites, of which over 100,000 sites are estimated to be in the USA alone and are candidates for this technology.
About Magnetek 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 $202 million in its 2003 fiscal year, ended on June 30, 2003. More information about Magnetek is available at magnetek.com. Magnetek is publicly listed on the New York Stock Exchange ("MAG")
About VRB Power
Based in Vancouver, B.C. Canada, VRB Power Systems Inc. is an electrochemical energy storage company that has commercialized the patented Vanadium Redox Battery Energy Storage System ("VRB-ESS"). The VRB-ESS is a new enabling technology that can effectively store electricity on demand. The VRB- ESS can provide direct economic benefits to utilities and end users in terms of improved power quality, reliability and energy efficiency. The VRB-ESS is particularly well suited to load levelling (peak shaving), electrical power arbitrage, grid stability enhancements, capital deferment and Remote Area Power Supply (RAPS) applications. It is primarily focused on stationary power sources such as utility substations, commercial buildings, production facilities, telecommunication operations, cellular radio sites, and renewable resource generation such as wind farms - creating the ability to provide "firm" capacity. As a "green" technology, the VRB is characterized by the lowest ecological impact of all energy storage technologies and is unlike most other conventional energy storage systems that rely on toxic substances such as lead, zinc or cadmium. VRB Power is publicly listed on the TSX ("VRB") and the OTC Pinksheets ("VRBPF").
Warning: The Company relies upon litigation protection for
"forward-looking statements" "The TSX Venture Exchange does not
accept responsibility for the adequacy or accuracy of this release"
Vince Sorace
President, VRB Power Systems Inc.
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