Turbo Power Systems Inc. (“TPS"), the electrical machines and power electronics
company, is pleased to announce that it has signed an exclusive five year
development and manufacturing agreement with McQuay International, the major
international capital equipment manufacturer involved in the design and
manufacturing rights agreement announced by TPS on the 9 and 14 January
2009.
It is envisaged that multiple funded product developments will be completed
under this agreement with the first commencing before the end of 2009. Following
an initial development period which is expected to be between two to three years,
the combined revenues associated with the manufacture and licensing of the
various products could be in the region of US$10 million per annum if McQuay’s
sales expectations are fulfilled.
McQuay International delivers engineered, flexible solutions for commercial,
industrial and institutional Heating, Ventilation and Air Conditioning (HVAC)
requirements with reliable products, applications expertise and responsive
support. As part of Daikin Industries, a Fortune 1000 company, McQuay is thesecond largest air conditioning, heating, ventilating and refrigeration company in
the world.
Paul Summers, CEO of TPS, said:
“I am delighted to have the opportunity to enter into this long term agreement with
such a prestigious company as McQuay International. This represents a major
commitment to TPS and demonstrates McQuay International’s confidence in the
benefits that our technology can bring to their business and customers in terms of
energy efficiency, operating and through life costs.”
Under the five year agreement, McQuay International will exclusively source
motors and variable frequency drives (“VFDs”) for its future products from TPS
and will have exclusive use of TPS technology in the HVAC market. TPS will
have exclusive manufacturing rights for a period of five years once each product
has been released for production. TPS will share the IPR related to the new and
existing products developed for McQuay, and will undertake a technology transfer
process to allow McQuay the option of supporting its products after the
agreement has expired.
The motors and VFDs provided by TPS will power the refrigeration compressors
in the HVAC products to provide highly energy efficient and low maintenance
solutions to McQuay’s customers.
Page 2 of 2
About Turbo Power Systems
Turbo Power Systems Inc. (TSX:TPS.TO AIM:TPS.L) is a leading UK based
designer and manufacturer of innovative power solutions. The Group’s products
are based on its’ core technologies of power electronics and high performance
electric motors and generators targeted at the energy, industrial, transport and
defence markets.
For further information please contact:
Turbo Power Systems
Marketing Communications
Alan Baird
Tel:+44(0)208 564 4460
Email: abaird@turbopowersystems.comwww.turbopowersystems.com
Kreab Gavin Anderson (PR) Tel: +44 (0)20 7074 1800
Ken Cronin
Michael Turner
KBC Peel