CAMBRIDGE, Mass., Oct. 10, 2002 (PRIMEZONE) -- SatCon Technology Corporation(r) (Nasdaq:SATC), a leader in critical power systems, has developed two versions of a new rotary Uninterruptible Power Supply (UPS) product in response to market guidance. Several units are now in testing at the Power Systems Facility in Worcester, MA, one at 315kVA and a larger unit at 2.2MVA. The 315kVA unit is now installed beside the Worcester plant and is configured to run the Worcester facility for testing in a real use environment. SatCon is now preparing for customer demonstrations and the official UPS product launch in the coming months.
UPS systems are valuable assets to businesses that must remain up and running without power interruptions. No longer just the need of Internet service providers or large data centers, these UPS systems are becoming critical to any business where continuity of processes is vital. A research report published in August of 2001 by First Union Securities entitled "The Age of the Electron -- A Revolution in Power Technology" estimates the world market for power quality and UPS systems to be $70 billion in 2003.
The market for these UPS systems is growing. UPS systems are used in factories with automated manufacturing equipment, large data centers, hospitals, financial institutions, and convention centers. SatCon estimates that approximately 500 of the 2.2MVA systems are ordered each year at a price of $1.5 to $2.5 million dollars apiece.
SatCon rotary UPS systems perform the functions of back up power, and power quality conditioning. As power quality conditioners and an uninterruptible power source, they are designed to provide reliable, high quality power by constantly conditioning incoming power from the electric utility grid and acting as a substitute for the electric utility in the case of power outages. As back-up power sources, if there is a power outage, they convert the energy stored in the flywheel to electricity to power the facility until an integral engine-generator starts or until the utility returns.
To provide a better understanding of these new UPS systems, photos and descriptions are available on the SatCon website http://www.satcon.com/Update10-02.pdf
The SatCon economical design combines the ruggedness and overload capability of power generated by an electrical machine with the speed of response and accuracy of frequency and voltage control of an electronic regulator, providing a very competitive offering to the marketplace. In addition, a simpler UPS version is priced correspondingly lower, by removing the diesel. SatCon has already had several inquiries to purchase this more compact type of system. Several of these products are currently sold into the power quality market; these new UPS systems and special power quality systems represent a significant upside to our current revenue.
The manufacture of critical power systems and components for commercial and government applications is the primary business at SatCon (www.satcon.com). This product line of rotary Uninterruptible Power Supply (UPS) systems we feel is a key product line for SatCon's future.
About SatCon Technology Corporation
SatCon Technology Corporation manufactures and sells power and energy management products for digital power markets. SatCon has three business units: SatCon Power Systems manufactures and sells power systems for distributed power generation, power quality and factory automation, including inverter electronics from 5 kilowatts to 5 megawatts. SatCon Electronics manufactures and sells power chip components; power switches; RF devices; amplifiers; telecommunications electronics; and hybrid microcircuits for industrial, medical, military and aerospace applications. SatCon Applied Technology develops advanced technology in digital power electronics, high-efficiency machines and control systems for a variety of defense applications with the strategy of transitioning those technologies into multiyear production programs. For further information, please visit the SatCon website at www.satcon.com.
Statements made in this document that are not historical facts or which apply prospectively are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the Company's expectation. Among the important factors that could cause the Company's actual circumstances, or results, to differ materially from those implied by such forward-looking statements include market conditions, developments in the Company's business and industry, inability to gain customer acceptance of its new UPS products, failure to successfully manufacture these systems in quantities and inability to successfully complete a product introduction. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's filings, including but not limited to the Company's Forms 10-K and 10-Q. Copies of those filings are available from the Company and the Securities and Exchange Commission. The Company expressly disclaims any obligation to update the information contained in this release.