consultancy contract with Vale!25 November 2011
Turbo Power Systems Inc
("Turbo Power Systems" or "TPS" or "the Company)
Engineering Consultancy Contract with Vale Soluções em Energia
Turbo Power Systems, the innovative electrical motors, generators and power electronics company, is pleased to announce that it has entered into an agreement to provide consultancy services to Vale Soluções em Energia ("VSE") on an ongoing basis, which will initially be worth £0.2 million.
The consultancy agreement covers a wide range of specialist engineering and support activities and allows VSE access to TPS's engineering expertise in electrical machines and power electronics.
Peter Brown, Chief Executive Officer of TPS, commented:
"We are pleased that VSE have recognised TPS's engineering expertise and its technology know-how by appointing the Company to provide these services. This contract reflects well upon our recent efforts and demonstrates the continued confidence that the market has in Turbo Power Systems"
Related Party Transaction
VSE is the ultimate controlling shareholder of TAO Sustainable Power Solutions (UK) Limited ("Tao"), which holds 75.4% of the issued share capital of the Company, and is therefore a Related Party for the purposes of the AIM Rules for Companies ("AIM Rules"). Accordingly the entry into of the consultancy agreement outlined above constitutes a related party transaction for the purpose of the AIM Rules. Tao and VSE are considered to be insiders pursuant to Canadian securities law.
The Company's independent director considers, having consulted with finnCap Ltd, the Company's Nominated Adviser ("NOMAD"), that the terms of the transaction being entered into are fair and reasonable insofar as the Company's shareholders are concerned.
About Turbo Power Systems
Turbo Power Systems Inc. (TSX:TPS.TU AIM:TPS.L) is a leading UK based designer and manufacturer of innovate power solutions to a global client base. 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 Inc. Tel: +44 (0)20 8564 4460
Peter Brown, CEO
FinnCap (NOMAD, broker and financial advisor) Tel: +44 (0)20 7600 1658
Marc Young / Henrik Persson
Kreab Gavin Anderson (Financial PR) Tel: +44 (0)20 7074 1800
Robert Speed / Michael Turner