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VRB Power Systems Identified

by DOE as Part of Demonstration Project Selected to Help Modernize the United States Utility Grid.

VRB Power Systems Inc. (TSX-V: VRB) announced today it has been identified by the U.S. Department of Energy (DOE) as part of a project selected by the DOE for federal funding to help increase efficiency in the nation's electricity grid.

To significantly reduce peak load and measurably improve power reliability at the Santa Rita Jail, the project will integrate solar energy, fuel cell, energy storage and control systems. (Duration: 3 years; Cost: $7 million federal/$7 million non-federal). For more information, please refer to the announcement released by the DOE at http://www.energy.gov/news/6170.htm.

The Renewable and Distributed Systems Integration (RDSI) technologies demonstrated in these projects aim to reduce peak load electricity demand by at least 15 percent at distribution feeders-the power lines delivering electricity to consumers-and are part of the Bush Administration's ongoing efforts to enhance the efficiency and reliability of the nation's energy infrastructure to ensure a reliable supply of energy to all Americans.

“Cutting-edge technologies that enhance the efficiency and dependability of the nation's electricity grid are critical to the Bush Administration's overarching goal of ensuring an affordable and reliable supply of electricity to the American people,” Assistant Secretary Kolevar said. “These proposals will help to increase reliability in our electricity grid by defraying both the cost and effort associated with upgrading distribution lines or adding new generation capacity to meet peak electrical load, furthering our ongoing efforts to increase national economic and energy security.”

The projects were selected in response to DOE's Office of Electricity Delivery and Energy Reliability (OE) April 2007 Funding Opportunity Announcement seeking applications for research and development activities to improve the security of controls systems for energy delivery and increase the use of distributed generation during peak load periods. Negotiations between selected applicants and OE will begin immediately to determine final project plans and funding levels.

Further information and specific details regarding the VRB-ESS system size, specifications and cost will be released when finalized with the parties involved. The sale is also subject to execution of final contracts.

About VRB Power
Headquartered in Richmond, Canada, VRB Power Systems Inc. is an energy storage company which is marketing, selling and manufacturing products utilizing the patented VRB Energy Storage System (“VRB-ESS™”). The VRB-ESS can economically store and supply large amounts of electricity on demand and is focused on stationary applications. It is a long life, cost effective, low maintenance, efficient technology that allows for the scalability of power and storage capacity independently. The VRB-ESS is particularly beneficial to renewable energy providers, utilities and end users through its ability to “inventory” electricity, allowing for the optimal match of supply and demand.

The VRB-ESS is well suited for a variety of applications. Enabling the provision of “firm” capacity from intermittent renewable generation such as wind and solar; more cost effective and efficient generation of electricity in remote areas; capital deferral for utilities; and load levelling (peak shaving) applications. The VRB-ESS is also capable of providing backup power solutions including applications for utility sub-stations and telecommunication sites. The VRB-ESS is characterized by having the lowest ecological impact of all energy storage technologies and is unlike most other conventional energy storage systems that rely on substances such as lead or cadmium.

Website: www.vrbpower.com

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