Pioneer Awarded Two Multi-Year Supply Contracts by Hydro-Quebec
New York, March 3, 2010 - Pioneer Power Solutions, Inc. (OTCBB:PPSI) ("Pioneer") announced that Hydro-Québec has entered into two significant contracts with Pioneer Transformers Ltd., Pioneer's wholly-owned subsidiary, for the manufacture of distribution transformers. Hydro-Québec is the largest generator of electricity in Canada and operates the largest power transmission network in North America, including 15 interconnections allowing energy interchanges with other Canadian provinces and the U.S. Northeast.
The first of the two contracts is a renewal of Pioneer's existing master agreement for the production of pad-mount transformers. Pad-mount transformers are designed for use in grade level and underground commercial and residential electric distribution systems where safety, reliability and aesthetics are especially important. The existing supply contract was executed in 2006 and provided for an initial term of two years, with two one-year extension options. Both options were exercised by Hydro-Québec. The new contract takes effect in April 2010 and is also for a maximum term of four years, including two one-year extension options.
In addition, Pioneer received a first-time contract from Hydro-Québec for the supply of submersible transformers. The submersible product line is intended for frequent or continuous submerged or underground operation, designed to withstand hot, cold or unclean environments while operating securely and efficiently over many years. Like the pad-mount contract, the master agreement for submersibles provides for a maximum term of four-years, including extension options.
"We are extremely pleased by this extension and expansion of our critical supply relationship with one of the largest utilities in North America and the world's largest producer of hydropower," said Nathan Mazurek, CEO of Pioneer. Mr. Mazurek continued, "Hydro-Québec is a strong supporter of local engineering and manufacturing expertise and we have been a proud beneficiary of this commitment for over four decades." On the award of a new contract for submersible units, Mr. Mazurek commented, "Submersibles are one of our top selling products in the U.S., but still a small portion of our overall revenues. We hope that this validation of our technical expertise and service by Hydro-Québec will provide a boost to our U.S. marketing efforts."
About Hydro-Québec
Hydro-Québec generates, transmits and distributes electricity. Its sole shareholder is the Québec government. It uses mainly renewable generating options, in particular hydropower, and supports the development of wind energy through purchases from independent power producers. It also conducts research in energy-related fields, such as energy efficiency. For more information on Hydro-Québec, please visit www.hydroquebec.com.
About Pioneer Power Solutions, Inc.
Through its subsidiaries, Pioneer is engaged in the design, development and manufacturing of liquid-filled power, distribution and specialty electric transformers for over 50 years. Pioneer serves customers in a variety of industries with particular emphasis on the electric utility, industrial and commercial construction markets in Canada and the United States. To learn more about Pioneer, please visit our website at www.pioneerpowersolutions.com.
Forward-Looking Statements:
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the company's control, and cannot be predicted or quantified and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with: (i) fluctuations in foreign currency exchange rates; (ii) the loss of significant customers; (iii) increases in the prices of raw materials; (iv) development of new products and service offerings; (v) the company's ability to integrate acquisitions; (vi) the effectiveness, profitability, and marketability of the company's current and prospective products and services; (vii) the impact of current, pending, or future legislation and regulation on the company's industry; and (viii) the impact of competitive products, services, pricing or technological changes. More detailed information about the company and the risk factors that may affect the realization of forward-looking statements is set forth in the company's filings with the Securities and Exchange Commission, including the company's Current Report on Form 8-K filed with the SEC on December 7, 2009. Investors and security holders are urged to read this document free of charge on the SEC's web site at www.sec.gov. The company does not undertake to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
For More Information Contact
Investor Relations:
Mitchell Benus
Pioneer Power Solutions
+1 347 326 8573
investors@pioneerpowersolutions.com
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