Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTC) announced today that the second half of a $1.1 million order placed in January by one of China's leading cable manufacturers, Jiangsu Far East Group Limited, was shipped Sunday from the Port of Long Beach, California by CTC.
These ACCC conductors are destined for two high voltage transmission projects in China. The order placed by Jiangsu Far East Group for delivery to Xiamen and Fuzhou Power Bureaus is comprised of 30 kilometers of CTC's 1020 kcmil ACCC Drake conductor and 30 kilometers of CTC's 816 kcmil ACCC Grosbeak conductor, along with associated hardware. One of the conductors will be deployed for a new transmission line; and the other will be used as a replacement and ampacity upgrade to an existing line. The initial shipment is scheduled for installation in approximately two weeks with the remainder to be operational later in the month of May.
Upon successful completion, Fujian Province has indicated that it intends to purchase ACCC for their new transmission corridors as well as reconductor replacements, according to Mr. Jiang Xi Pei, Chairman and CEO of Jiangsu Far East Group Limited. CTC has responded to this and other market signals by increasing its production capacity with new pultrusion machines. These machines have been designed and built in-house, which effectively doubles the company's production capacity. CTC has also completed a comprehensive review of its manufacturing systems and operational protocols with an eye toward ISO (International Organization for Standardization) certification later in the year.
"Now that our ACCC conductor has been shipped for these projects, we look forward to working with our Chinese colleagues to further provide the region with the most cost effective grid solution to address their rapidly expanding market," said Benton Wilcoxon, CEO of Composite Technology Corporation. "With our first commercial order to China now complete, we anticipate rapid growth once our ACCC lines are energized."
About Jiangsu Far East Group:
Jiangsu Far East Group Limited is located in Yixing City, Jiangsu, China. Jiangsu Far East is one of China's leading manufacturers of electrical transmission and distribution cable, which it sells to China's regional power grids through 200 local distributors.
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 bi-metallic corrosion issues
For further information visit our website at: 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.