CVTech Group Inc. is awarded contracts with a total value of $45.8 million

DRUMMONDVILLE, QC, Oct. 22, 2013 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or "the Corporation") (TSX: CVT) today announced that its subsidiaries have been awarded new contracts with an aggregate value of approximately $45.8 million.

First, the subsidiary Thirau ltée has obtained two contracts from Hydro-Québec with a total value of approximately $21.1 million.

  • An important contract valued at about $20.6 million for the construction of a new 230 kV, double-circuit electricity transmission line spanning 33 kilometers between the Saint-Césaire and Bedford substations in the Montérégie region. This line will enhance the reliability of the regional electrical network and exchanges between Québec and Vermont. Construction work will begin before the end of October and should spread out until May 2014. In addition, certain line rearrangement work at the aforementioned substations will be carried out until October 2014.
  • A contract valued at nearly $500,000 to proceed with pole planting work in the North Shore region. Work will begin before the end of October and will be carried out over a period of about five months.

Second, the U.S. subsidiary Riggs Distler & Company, Inc. ("RDC") won two contracts worth an aggregate value of US$17.0 million (Cdn $17.5 million).

  • A multi-year contract worth a total value of US$12.0 million for the operation and maintenance of a 40 MW solar panel array located in New Jersey. Execution of the contract is scheduled to begin before the end of 2013 and will be spread out over a three-year period concluding near the end of 2016.
  • A US$5.0 million contract from an important utility service provider in New Jersey to rebuild a 138 kV electricity transmission line. The project should begin in the fourth quarter of 2013 and should be completed during the first quarter of 2014.

Finally, the Ontario-based subsidiary Riggs Distler Inc. ("RDI") was awarded a $7.2 million contract for the maintenance and upgrade of the electricity distribution network of an important utility service provider in Toronto. Execution of the contract will begin in the fourth quarter of 2013 and will be carried out over a one-year period.

"These contract awards once again highlight the leadership of our subsidiaries in their respective markets," said André Laramée, President and Chief Executive Officer of CVTech. "On the one hand, Thirau enjoys a solid longstanding business relationship with Hydro-Québec, while RDC confirmed its leading position as a trusted service provider to the solar energy industry. Moreover, RDI continues to further enhance its presence and reputation in the important Ontario market."

OVERVIEW OF THE CORPORATION
CVTech is a company operating in the energy sector. The Corporation is a leading provider of construction and maintenance services to the public utility and heavy industrial markets mainly in Quebec, Ontario and the eastern United States. Through its subsidiaries, the Corporation provides maintenance and construction services for electricity transmission and distribution networks, substations and electrical power houses, as well as the control of vegetation on rights-of-way for electrical lines.

FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements that reflect management's current expectations regarding future events. Forward-looking statements are based on a number of factors and include risks and uncertainties. Actual results may differ from forecast results. Management assumes no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.

Further information regarding CVTech is available in the SEDAR database (www.sedar.com) and on the Corporation's website at www.cvtech.ca.

SOURCE: CVTECH GROUP INC.

For further information:

André Laramée, MBA
President and Chief Executive Officer
819-479-7771
a.laramee@cvtech.ca

Mario Trahan, CPA, CMA
Chief Financial Officer
819-479-7771
m.trahan@cvtech.ca

MaisonBrison Communications
Martin Goulet, CFA
514-731-0000
martin@maisonbrison.com

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CVTECH GROUP INC.

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