AAER releases 2009 first quarter results



    MONTREAL, May 28 /CNW/ - AAER Inc. (TSX-V: AAE), ("AAER" or the
"Company"), Canada's only original equipment manufacturer of wind turbines of
1 megawatt ("MW") and more, released today its financial results for the
three-month period ended March 31, 2009. The Company's unaudited interim
consolidated financial statements, Management Report and Annual Information
Form are available on the Company's Website at www.aaer.ca and on
www.sedar.com.

    
    Q1 2009 Highlights:

    -   Generated its first revenue related to the delivery of wind turbines
        of $6.2 million compared to nil in Q1 2008;

    -   Net loss in Q1 2009 was $4.4 million (or $0.03 per share) compared to
        $2.0 million (or $0.02 per share) in Q1 2008;

    -   Shipped the first turbine constructed at our Bromont, Quebec
        facility. The 1.5 MW A-1500 turbine was sold to the U.S. Marine Corps
        Logistics Base in Barstow, California. It has since been commissioned
        and is now generating electricity;

    -   Signed an agreement for the sale of a 1.65 MW A-1650 wind turbine to
        Hyundai Heavy Industries Co., Ltd. ("HHI"). Delivery of the
        components to Korea is expected in the second quarter of 2009;

    -   Completed the installation of a 1.5 MW A-1500 turbine in the Town of
        Portsmouth, Rhode Island. It is now operational and generating
        electricity;

    -   Completed the second tranche of the public offering announced on
        December 17, 2008, raising $1,138,755 in gross proceeds.

    Subsequent to the end of Q1 2009:

    -   Completed a corporate reorganization following the departure of Mr.
        Robert Guillemette as Chief Operating Officer. The position of COO
        has been replaced with two newly created positions with distinct
        responsibilities in the Engineering and Production departments: Mr.
        Martin Venne was appointed Vice President, Engineering, and Mr. Robin
        Lanoue was appointed Director of Production;

    -   Signed a conditional Turbine Supply Agreement (TSA) for the delivery
        and commissioning of 61 x 1.65 MW wind turbines to Mont Louis Wind
        L.P., represented by NPI Wind Power GP II Inc. and Northland Power
        Wind GP II Inc. ("Northland"). As is common practice in the wind
        industry, the TSA is subject to a "notice to proceed" to be given by
        Mont Louis Wind L.P. once a number of conditions precedent have been
        met to Northland's satisfaction, and once final permitting, approvals
        and financing have been obtained by both parties.
    

    "We are very excited to have delivered our first turbines that were
constructed at our Bromont, Quebec facility," said Dave Gagnon, President and
Chief Executive Officer of AAER. "This is a significant milestone for AAER as
we ramp up commercial production to meet our order book. With the recent
completion of a conditional Turbine Supply Agreement for 61 x 1.65 MW wind
turbines for Mont Louis Wind L.P., the successful production at our Bromont
facility validates our manufacturing capacity and capabilities."

    Financial Results

    For the quarter ended March 31, 2009 (Q1 2009), AAER generated its first
revenues related to the delivery of wind turbines. Total revenues of $6.2
million compared to nil in the same quarter in 2008 reflect the delivery of
the Town of Portsmouth's turn-key project, and the delivery of the Barstow's
wind turbine.
    Net loss for the 3-month period ended March 31, 2009 was $4.4 million or
$0.03 per share (basic and diluted) compared to $2.0 million or $0.02 per
share (basic and diluted) for the corresponding period in 2008. The increased
net loss in Q1 2009 is largely attributable to increased operating expenses.
    AAER's operating expenses for Q1 2009 totaled $8.3 million compared to
nil for Q1 2008, reflecting the production costs associated with the wind
turbines delivered during the first quarter of 2009, as well as indirect costs
associated with the commercial operations of the Bromont facility.
    Given that the Company continues to devote significant effort to its
growth, changes in the level of these expenses do not necessarily indicate
trends, demand, important events or uncertainties.

    Capital & Liquidity

    As at March 31, 2009, the Company had 130.0 million common shares issued
and outstanding, and $310,482 in cash and cash equivalents. As of December 31,
2008, the Company had 122.4 million shares issued and outstanding and cash and
cash equivalents totaling $2.6 million.
    Subsequent to the end of Q1 2009, the Company completed a public offering
of 32,609,000 AAER Units for total gross proceeds of $7,500,070. In addition,
the Company completed a share-for-debt offering in which 6,556,533 AAER Units
were issued to 15 suppliers and other business partners in payment of products
and services received by AAER. The total value of the share-for-debt offering
was $1,508,002.65.
    Each Unit, issued at a price of $0.23 per Unit, consists of one common
share in the share capital of AAER (each, a "Common Share") and one common
share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder
thereof to purchase one additional Common Share upon payment of the exercise
price of $0.27 per Warrant until May 23, 2011. The Warrants are also subject
to an accelerated expiry, under certain circumstances.

    
    About AAER Inc.
    ---------------
    
    AAER is a wind turbine manufacturer located in Bromont, Quebec that
manufactures and maintains high capacity 1 MW or more wind turbines
principally for the North American market. Its strategy is to progressively
build its products' components to provide a high level of reliability and
competitive pricing to its customers. AAER uses a portfolio of proven European
technologies to ensure the performance of its turbines in various wind
conditions and terrains. Its stock is listed on the TSX Venture Exchange
(TSX-V: AAE). Additional information is available on the Corporation's website
at www.aaer.ca.

    
    Forward-Looking Statements
    --------------------------
    
    This news release contains certain forward-looking statements or forward
looking-information. These forward looking statements are subject to a variety
of risks and uncertainties beyond the Corporation's ability to control or
predict which could cause actual events or results to differ materially from
those anticipated in such forward looking statements. Such risks and
uncertainties are disclosed under the heading "Risk Factors" in the
Corporation's Annual Information Form for the year ended December 31, 2008 and
dated March 26, 2009. Further, forward-looking information is in addition
based on various assumptions, including, without limitation, assumptions
about: (i) general business and economic conditions; (ii) selection of the
Corporation's client bids in different requests for proposals; (iii) the
availability of financing on reasonable terms; (iv) the availability of key
components for the assembly of wind turbines, (v) the costs of raw materials
and parts; (vi) the Corporation's ability to attract and retain skilled staff;
(vii) market competition; (viii) the technology offered by the Corporation's
competitors; (ix) the Corporation's ability to meet contractual obligations
and delivery dates; and (*) the Corporation's ongoing relations with employees
and with clients. Should one or more of these risks and uncertainties
materialize, or should the underlying assumption prove incorrect or different,
actual results may vary materially from those described in the forward-looking
statements. All forward looking statements speak only as of the date of this
news release. Accordingly, readers should not place undue reliance on
forward-looking statements.

    
    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release
    

    %SEDAR: 00019641EF




For further information:

For further information: AAER Inc., Dave Gagnon, President, Telephone:
(450) 534-5155, www.aaer.ca; The Equicom Group Inc., Alice Dunning, Telephone:
(416) 815-0700 x255, adunning@equicomgroup.com

Organization Profile

AAER INC.

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