Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTC) announces the placing of an order for 60 kilometers of its proprietary ACCC (Aluminum Conductor Composite Core) conductor and certain related hardware by one of China's leading cable manufacturers, Jiangsu Far East Group Limited, for installation in Fujian Province. The purchase order value is approximately $1.1 million. Project construction is expected to begin on March 15th, 2006, and be operational by April.
The order placed by Jiangsu Far East Group for delivery to Xiamen and Fuzhou Power Bureaus comprised 30 kilometers of CTC's 1020 kcmil ACCC Drake conductor and 30 kilometers of CTC's 816 kcmil ACCC Grosbeak conductor along with certain related hardware. This order will be used in two regional high voltage transmission projects: 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. Upon successful completion of these first installments, Fujian Province has indicated that it intends to purchase ACCC for both new transmission corridors as well as reconductor replacements in the province, according to Mr. Jiang Xi Pei, Chairman and CEO of Jiangsu Far East Group Limited. Using its strength in strategic planning Jiangsu Far East's forward thinking management was quick to recognize that CTC's ACCC transmission line product could quickly and cost effectively solve the congestion problem in China's rapidly expanding grid structure. Mr. Jiang is particularly excited about the two Power Bureaus' interest in purchasing CTC products for new construction projects because it demonstrates confidence in ACCC as an excellent solution for the huge new construction market.
It is reported that during the 2006-2010 period, State Grid Corporation of China (SGCC), which controls the transmission of electricity in 22 provinces, plans to invest heavily in power grid construction, basically eliminating the bottleneck of power supply and building a flexible and efficient state network by 2010. In the coming five years, SGCC will give priority to grid development including the construction of super high-voltage networks, interregional networks and raising interregional transmission capacity. Last year SGCC estimated that it could spend as much as 107 billion Yuan ($13 Billion U. S. Dollars) building and repairing power lines in 2005. Additionally, China Southern Power Grid Co., the smaller of the two state electricity distributors, estimated that it could spend 30.5 billion Yuan ($3.7 billion U.S. Dollars) in 2005 building and repairing grids.
"We are delighted that our ACCC conductor was chosen for these projects. Our ACCC conductor provides the most cost-effective solution for the challenges confronting the Chinese grid. We are proud to be able to contribute to China's economic expansion by providing today's best transmission solution," said Benton Wilcoxon, CEO of Composite Technology Corporation. "This order is an important breakthrough in China and, we anticipate that licensing agreements for aluminum wire stranding of our ACCC cable in China will soon occur."
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 any bi-metallic corrosion issues
For further information visit our website at: http://www.compositetechcorp.com
For Investor Relations Contact: James Carswell, (760) 416-8628
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.