Canada's AAER gets $80M contract for BC wind project

AAER (TSX-V: AAE), a Montreal-based wind turbine manufacturer, is selling 17 of its 1.5 megawatt (MW) wind turbines to Richmond, BC-based Katabatic Power Corp., a privately-held wind farm developer with contracts to sell renewable energy in British Columbia.

AAER is to deliver 17 of its model A1500-77 wind turbines during the last quarter of 2007 for use at Katabatic's Mount Hays wind project near Prince Rupert, BC. Katabatic also retains the option to purchase an additional 17 turbines from AAER in 2008. AAER will maintain and service the turbines for the first six years. The sale is to be reflected in definitive agreements to be entered into shortly.

The sale represents total revenues ranging between CDN$35 and $80 million for AAER, when considering all options and related maintenance
contracts.

"AAER's turbine technology is proven in the field, and is ideally designed for the outstanding wind resource along the BC coast," said Jonathan Raymond, COO of Katabatic Power Corp. "Over the next decade, Katabatic's core business will focus on developing British Columbia's significant wind resources."

In September 2006, Katabatic signed a 25-year electricity purchase agreement with BC Hydro, the Province's primary electricity provider, for the output of the 25.5 MW Mount Hays wind farm. The project will be the first commercial wind farm in the Province, providing electricity to BC Hydro customers in late 2007.

Katabatic is also in initial stages of development of a 3,000MW wind farm on Banks Island, BC. That project, which would break ground in 2009, would be one of the world's largest wind energy facilities.

Shares of AAER were up almost 9% today on the news.

AAER integrates, manufactures, distributes and maintain high capacity wind turbines from 1 to 1.5 MW based on technologies developed by Fuhrlander-Pfleiderer GmbH & Co.

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