Quebec Firm to Manufacture Turbines From Germany

Montreal -- - AAER Systems Inc. has just completed a major agreement in the field of wind energy with the German firm Pfleiderer. According to Dave Gagnon, president of the Quebec company, the first phase of this agreement will allow AAER Systems to distribute a proven technology, while the second phase will enable it to produce high capacity wind turbines."

This transaction, which will result in a multi-million dollar investment to set up two plants and a research center in Quebec starting in the beginning of 2004, will mark the dawn of a new era for AAER Systems.

The second phase will involve the transfer of technology for three models of wind turbines for which AAER Systems will hold exclusive rights in the Americas.

- The unique 600 kW and 1500 kW models for which AAER Systems currently has letters of intent for 162 units.

- The 5000 kW, a product of the MULTIBRIDTM technology, that produces triple the power of standard models, which owes its productivity to its offshore capability. It is the only system of its kind.

Wind energy, the energy of the future

Following the Kyoto protocol, wind energy has become an indispensable energy alternative. Europe is far ahead in this area, producing 86% of the worldÂ’s wind energy.

Asia has been experiencing marked growth in this area and its growth prospects are very encouraging with projections of a 33% increase in the medium-term.

The Americas produce only 0.04% of its electricity through wind energy. The development potential is thus immense considering the fact that this type of electricity production is environmentally friendly. Growth projections for the Americas are of about 38% in the medium-term.

Quebec is also lagging behind in aeroelectricity production. It is thus in view of of improving this situation that Hydro-Québec planning a call for tenders for the production of 1000 MW of wind energy. As a Quebec company that meets world standards in wind turbine production, AAER Systems is well placed to participate in the contract for the production of wind turbines in Quebec.