

Composite Technology Corporation: Composite Technology Completes Sale of Turbine Business to DSME
IRVINE, CA--(Marketwire - September 8, 2009) - Composite Technology Corporation (CTC) (
Following the terms of the asset purchase agreements, the sale price was $46,500,000 for substantially all of the operating assets and liabilities of DeWind Inc., and $3,000,000 for certain assets of DeWind Ltd. The transaction has certain post-closing adjustment provisions effective over various time periods and portions of the sales price are held in escrow pending such adjustments. CTC and its subsidiaries are no longer in the business of developing or manufacturing wind turbines and most of the DeWind employees transferred to DSME.
"This transaction will help DSME enter the global wind energy market and to establish a strong presence in that market. We will leverage DSME's world class engineering and manufacturing capabilities and DeWind's technology and experience to become one of the world leaders in the wind energy sector," said Sang Tae Nam, President and the CEO of DSME.
Benton H Wilcoxon, Chairman and CEO of CTC, stated, "I am very pleased that the DeWind turbine business and its employees have found such an excellent home in DSME. I have been very impressed by the leadership of DSME and in particular their development plans for the business. CTC will now focus its resources and attention on its business of innovative high performance energy efficient electrical transmission products."
RBS Securities, an affiliate of The Royal Bank of Scotland Plc, acted as exclusive financial advisor to DeWind. Milbank, Tweed, Hadley & McCloy LLP acted as legal counsel to CTC and DeWind. Macquarie Securities Korea Limited acted as financial advisors to DSME. Reed Smith LLP acted as U.S. legal counsel to DSME, and Shin & Kim acted as Korean legal counsel to DSME.
The closing of the asset sale transaction will be described in a Form 8-K to be filed with the Securities and Exchange Commission (SEC).
About DSME:
Daewoo Shipbuilding & Marine Engineering Co., Ltd. (DSME) is the world's second largest shipbuilder with an annual capacity of 75 vessels and 7-8 large scale offshore structures such as semisubmersibles and Floating Production Storage & Offloading ("FPSO") and has the largest market share in Liquified Natural Gas Carrier, Very Large Crude Carrier and semi-submersible drilling rigs. DSME product portfolio includes commercial ships such as LNG carriers, oil tankers, containerships, Liquified Petroleum Gas carriers, pure car carriers, offshore structures such as FPSO vessels, drilling rigs, drillships and fixed platforms; and naval vessels including submarines, destroyers, rescue ships and patrol boats.
DSME, originally established as Okpo Shipyard on Geoje Island, South Gyeongsang Province in 1973, was spun off from the Daewoo conglomerate in 2000. The government-run Korea Development Bank and KAMCO currently own 50% in DSME. DSME maintains order backlog totaling US$ 39 billion representing 206 ships as of April 30, 2009. In 2008, DSME achieved KRW 1.0 trillion in operating profit and KRW 0.4 trillion in net profit through sales of more than KRW 11.1 trillion. New orders amounted to US$ 11.6 billion in 2008.
For more information about DSME, please visit our website at [ www.dsme.co.kr ]
About CTC:
Composite Technology Corporation, based in Irvine, California, USA, develops, manufactures and sells innovative high performance energy efficient electrical transmission conductors through its subsidiary, CTC Cable Corporation. CTC Cable produces composite rod for use in its patented high efficiency ACCC* conductors, used in electrical transmission grids. ACCC™ conductors have less line loss compared to similar diameter conventional conductors and therefore enable power generators to reduce the amount of generation while still delivering the same power to customers. In the United States ACCC conductors offer an effective solution for companies wishing to comply with recently introduced legislation providing various incentives for use of advanced conductors that reduce line losses by over 25%. Over 8000 kilometers of ACCC conductor have been installed on five continents. The performance and longevity of CTC's ACCC technology have been independently verified by certifying agencies, test centers and power grids around the world. ACCC conductors have demonstrated significant savings in upgrade capital costs as well as operating expenses when substituted in grid systems. ACCC conductors enable grid operators to reduce blackouts and brownouts by providing reserve electrical capacity, since they can be operated at higher temperatures without significant thermal line sag. ACCC conductors are an economical solution for reconductoring power lines, constructing new lines and crossing large spans. ACCC core is produced by CTC Cable and delivered to licensed qualified conductor manufacturers worldwide for ACCC conductor production and sale into local markets.
*ACCC is a trademark of CTC Cable Corporation
For further information visit our website: [ www.compositetechcorp.com ]. Investor Relations Contact: James Carswell, +1-949-428-8500.
This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (the "Company"). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, resolution of pending and threatened litigation matters of DeWind, resolution of disputes with creditors of DeWind, the final determination of the value of the net assets of DeWind at closing, occurrence of any indemnification events under the asset purchase agreements, competition with larger companies, development of and demand for a new technology, our customers' fulfillment of payment obligations under the respective supply agreement, general economic conditions, the availability of funds for capital expenditure and financing in general by us and our customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company, including those that are found in the Company's Annual Report filed with the SEC on Form 10-K/A for fiscal year ended September 30, 2008 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.