20th Jan 2005 07:00
Turbo Genset Inc.20 January 2005 20 January 2005 Further contract wins worth up to £6.9m, order book update and sale of investment for £1.3m Turbo Genset Inc. ("Turbo Genset"), the innovative power generation and powerelectronics systems company, is pleased to announce further contract wins and ageneral update on its order book. The Company will announce its full yearresults for the year ended 31st December 2004 on Thursday March 10th. Toronto Transport Commission - H6 Subway Car Refurbishment Turbo Genset's UK power electronics division, Intelligent Power Systems(I-Power), has been awarded a contract to supply 128 Static Converter Units(SCUs) for the H-6 subway cars in Toronto. The total contract is worth £2.7mover the next 4 years. H-6 subway cars currently use Motor-Alternator equipment to generate the powerneeded to operate various onboard car subsystems. Over time, these have becomeunreliable, impacting passenger service, causing line delays and affecting theavailability of H6 cars for revenue operation. A prototype provided by I-Power of an H-6 SCU has reliably operated in revenueservice for more than a year. Based on this proven performance, and in order toimprove the overall reliability of H-6 cars, SCUs were identified as areplacement for the current equipment. SKF (Canada) In July 2004 the Company won a contract from SKF Magnetic Bearings for thedevelopment of a high-speed motor and associated 35kW drive for a gas compressorapplication, and the supply of 6 prototypes. Commissioning of the firstprototype is currently under way. The agreement consists of a development andevaluation phase, which is to be followed by an initial five-year productioncontract. The value of the initial contract phase, dependent on end-customerdemand, could exceed 6 million Euros. Turbo Genset are now delighted to announce that an additional order has beenagreed for the development of a 15kW application. In line with the terms of theprevious contract, the additional value of 6.5 million Euros anticipated to flowfrom the subsequent five-year production contract is dependent on final customerdemand. This project combines both the power electronics expertise of I-Powerand the high speed electrical machine technology developed by Turbo Genset atHeathrow and incorporated in their turbine based gensets. SKF Magnetic Bearings is an organization within the SKF Group that is dedicatedto the sales, manufacturing and development of Magnetic Bearing Solutions. SKFhas raised the standards of performance for rotating equipment by providingrobust, cost effective and easy to implement magnetic bearing solutions. SKF Magnetic Bearings has its head office and main functions based in Calgary,Canada. Local sales and application engineering support is provided through theglobal network of SKF. Order Book Turbo Genset's firm order book now stands at £10.5m excluding the SKF contracts.The SKF contracts have the potential to increase the order book by a further£8.7m depending on customer demand. Sale of Investment Turbo Genset further announces that following the flotation on AIM of Ceres Power PLC in December 2004, it has sold its entire investment in the companyrepresenting 0.2% for cash consideration of £1.3m. At 31 December 2003, Turbo Genset held 110,294 shares in Ceres Power Ltd, at acost of £300,000. The proceeds from this transaction will be used for working capital. Commenting on the contract wins, Michael Hunt, CEO said "I am delighted that we continue to win a significant number of the major ordersfor which we tender. These new wins highlight again the potential we have tocontinue to grow a balanced business, with revenues being generated by both ouroperations, and with products that combine their excellent technical skills." For further information, please contact: Turbo Genset Colin Besant, Chairman Tel:+44 (0)208 564 4460 Michael Hunt, CEO Tel:+44 (0)191 495 4850 Gavin Anderson & Company (PR) Tel:+44 (0)207 554 1400 Ken Cronin Tel:+44 (0)788 759 1499 Seton Services (IR) Toni Vallen Tel:+44 (0)207 727 3073 Company Website: www.turbogenset.com NOTES TO EDITORS About Turbo Genset Turbo Genset develops innovative products for power generation and powerconditioning. The Group was established in 1993 as a spin-off from ImperialCollege, London and was floated on the London stock exchange in July 2000 andsoon after obtained a secondary listing in Toronto. In July 2001, the Groupacquired Intelligent Power Systems Limited (I-Power) specialising in powerelectronics. At the end of 2002, the Company completed the acquisition ofcertain rail power electronics business interests from Rolls Royce IndustrialControls, which complemented the existing product range and has providedopportunities to significantly grow the rail power electronics business. Forward Looking statements This news release contains forward-looking statements. Forward-lookingstatements include statements concerning plans, objectives, goals, strategies,future events, or performance, and underlying assumptions and other statementsthat are other than statement of historical fact. These statements are subjectto uncertainties and risks including, but not limited to, the ability to meetongoing capital needs, product and service demand and acceptance, changes intechnology, economic conditions, the impact of competition, the need to protectproprietary rights to technology, government regulation, and other risks definedin this document and in statements filed from time to time with the applicablesecurities regulatory authorities. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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