Magnetek Signs Telco Power Development Pact with VRB Power Systems
LOS ANGELES, CA - April 12, 2004 - Magnetek, Inc. (NYSE: MAG) today announced that it has signed a Memorandum of Understanding with Vancouver-based VRB Power Systems to co-develop an alternative to lead-acid battery systems utilizing Vanadium Redox Battery technology. Under the agreement, Magnetek will provide design, integration and channels to market for the energy storage systems, incorporating its own high-efficiency power control products.
Based on the patented Vanadium Redox Battery Energy Storage System ("VRB-ESS"), the resulting systems would be low-maintenance and would afford telecommunications service providers substantially lower cost of ownership than currently deployed lead-acid battery-based systems.
"VRB-ESS technology presents a solution that is expected to reduce today's high battery maintenance costs; more than double the life of existing backup power systems; present environmental benefits (no lead-acid disposal); and improve telecommunications carriers' bottom lines," states Tim Hennessy, CEO of VRB Power.
"Telco service providers are expanding their networks and planning to replace aging battery systems at 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."
NEBS and UL testing of the new system is expected to commence early in the third calendar 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.
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 leveling (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. It uses conducting plastic electrodes, which do not contain heavy metals unlike most other conventional energy storage systems that rely on toxic substances such as lead, zinc or cadmium. More information about VRB is available at http://www.vrbpower.com. VRB Power is publicly listed on the TSX Venture Exchange ("VRB") and the OTC Pinksheets ("VRBPF").
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.
Director, Marketing Communications
VRB Power Systems
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's expectations regarding sales of and markets for its products and services, such as telecommunications power systems. These forward-looking statements are subject to risks and uncertainties, many of which cannot be predicted or quantified and are beyond the Company's control. Future events and actual results may differ materially from those set forth in, contemplated by, or underlying these forward-looking statements. Other factors that could cause actual results to differ materially from expectations are described in the Company's reports filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934.