Power Engineering - VRB Power signs telco power development pact with Magnetek Inc.

8 April 2004 - VRB Power Systems Inc.("VRB Power") has announced the signing of a Memorandum of Understanding with Magnetek Inc., Telecom Power Group ("Magnetek") a global leader in advanced digital power solutions, to jointly develop a battery replacement product utilizing the Vanadium Redox Battery Energy Storage System ("VRB-ESS") technology.

Under this Agreement, VRB Power will provide Magnetek with the base technology, and Magnetek will provide the product design, integration and channels to market for the telecommunications industry. This will enable VRB Power and Magnetek to offer an alternative to traditional lead acid battery technology with a reliable and environmentally safe energy storage product for switching centres and wireless base stations.

"Telco service providers are expanding their networks and planning to replace aging battery systems in many existing sites," notes Jack Conn, Magnetek's Vice President of Sales for Telecom Power Systems. "VRB-ESS technology promises to enable these carriers to lower their operating expenses and apply the savings to revenue-generating services."

Tim Hennessy, CEO of VRB Power states: "The Telecom sector is one of the largest and fastest growing global markets for the VRB-ESS. A fundamental yet non-core component in every cellular network provider is the battery backup system and its reliability. Existing backup systems incur high maintenance and replacement costs whilst reliability is also a constant concern. The VRB-ESS provides a solution which more than doubles the life-time of existing backup systems, has very low maintenance costs, will be price competitive and is environmentally friendly.

By allowing the network providers the ability to reduce their battery backup maintenance costs and enhance the systems reliability, it creates direct financial benefits as well as the capability to actively load shift, providing a future value opportunity to reduce energy costs. Together with Magnetek's design, integration skills and channels to market, this strategic relationship is well suited to capture a significant share of the backup systems market in the Telecom sector."

NEBS and UL testing of the new system is expected to commence early in the third calendar quarter, with commercial products anticipated for release in late 2004. Initial installations are expected to range from Mobile Telecom Switching Offices (MTSO's) to remote wireless cell sites, of which over 100
000 sites are estimated to be in the USA alone and are candidates for this technology.

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