XZERES Receives Letter of Intent Representing Minimum Orders of $5 Million
POSTED 09/21/11 WLSONVILLE, OR –9/20/2011 — XZERES Corp. (OTCBB: XPWR), designer, developer and producer of distributed generation, wind power systems and power management and efficiency devices for the renewable and clean energy markets, announced today that it has consummated a Letter of Intent, from the UK’s largest distributed wind energy dealer, VG Energy, Ltd., of Scotland, representing a minimum of $5.0 million in turbines to be purchased from XZERES over the next 15 months.“We are very pleased to have executed this Letter of Intent with VG Energy, Ltd.,” said Frank Greco, CEO and President. “We have worked tirelessly over the past 10 months to establish our presence in the lucrative UK distributed energy marketplace. We have demonstrated to our customers and dealers in the UK that we have a high-quality, best-of-breed, MCS-certified wind power system. These efforts have now culminated with a commitment from the market’s largest dealer, one capable of selling significant quantities of XZERES systems,” further commented Mr. Greco.
As part of the Letter of Intent, XZERES has agreed to provide VG Energy with exclusivity for certain areas of the United Kingdom, provided that VG Energy meets minimum sales volume requirements. “VG Energy is the most dominant force in the UK market having installed more than 1/3 (36%) of the total turbine capacity in the 15-100kW Feed in Tariff (FIT) range and we are excited to have forged an agreement with such a fantastic and formidable industry leader,” stated David N. Baker, Chairman. “The fact that VG requested exclusivity for key areas in the UK and agreed to certain minimum sales volumes reflects their overall market presence and capability to produce results.”
Jim Paterson, VG Energy president said “We’ve decided to use XZERES products exclusively in the UK small wind (6.1-15 kilowatt) market because they are the most reliable and dependable wind turbines that we have found after extensive market research around the World. As well as having excellent products, VG Energy believes that the XZERES business plan is well suited for producing the large numbers of quality turbines that this market will and does require.”
As a country with outstanding wind resources and one of the best Feed-in-Tariff’s in the world, the UK represents a significant market opportunity. Approximately 3,000 small wind turbines were installed in the UK during 2010, an increase of roughly 70% over 2009. According to the British Wind Energy Association (BWEA), UK market growth is expected to further accelerate to over 150% in 2011.
With our aggressive, direct sales and dealer efforts in the South, VG Energy as our partner for the North and the incredible market growth that continues to accelerate in the United Kingdom, we believe this is merely the beginning of our opportunity in the region.
For more information about XZERES or any of its products, please visit www.xzeres.com and www.xzeresenergy.com as well as www.xzeres.co.uk
Media Contact:
XZERES Investor Relations 503-388-7331
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