AAER Signs Reservation Agreement with Mont Louis Wind L.P. for 61 A-1650 Wind Turbines



    MONTREAL, Oct. 7 /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, announced today that it has signed a Reservation
Agreement (the "Agreement") for 61 1.65MW wind turbines to be delivered to
Mont Louis Wind L.P., represented by NPI Wind Power GP II Inc. and Northland
Power Wind GP II Inc., for its 100MW wind farm project in
Saint-Maxime-du-Mont-Louis, Québec, Canada (the "Mont Louis Project"). The 61
A-1650s are scheduled for delivery during the third quarter of 2010.
    "This agreement is a milestone for AAER as it represents the lead order
for our new 1.65MW A-1650 wind turbine and provides important validation of
our turbine technology and production capacity. It also strengthens our order
backlog and provides excellent visibility on our long-term supply chain, as we
start ramping up production in Q4 2008 toward our production goals for 2009
and 2010," said Dave Gagnon, President and CEO of AAER. "We are pleased to be
working with a proven developer like Northland Power and look forward to
delivering wind turbines in our home market in the near future."
    The reservation agreement enables Mont Louis Wind L.P. to secure a
manufacturing and delivery schedule for the 61 A-1650 wind turbines while a
Turbine Supply Agreement ("TSA") and Warranty, Maintenance & Service Agreement
("WMSA") are being agreed upon by Mont Louis Wind L.P. and AAER. Mont Louis
Wind L.P. and AAER have agreed on a "cost plus" structure for the supply of
the wind turbines. The final pricing and other terms and conditions will be
set at the signature of the TSA. The overall sale price is currently estimated
at approximately $142 million. The conditions to be met by AAER and Mont Louis
Wind L.P. before the execution of a definitive TSA include evidence of the
required financing by both parties, agreement on a definitive delivery and
payment schedule and technical due diligence to be performed by a third party
for financing purposes. AAER and Mont Louis Wind L.P. expect to execute the
TSA and the WMSA within 120 days of the signature of the reservation
agreement.
    The A-1650 is an optimized version of AAER's existing Germanischer
Lloyd-certified 1.5MW A-1500 wind turbine and its addition to the Company's
product portfolio enables AAER to offer a high degree of customization for
each potential project, as well as competitive pricing for a range of
different project configurations. AAER's A-1650 is a 1.65MW wind turbine
licensed from AMSC Windtec(TM), a subsidiary of American Superconductor
Corporation (NASDAQ:   AMSC).

    
    About AAER Inc.
    ---------------
    
    AAER is a wind turbine manufacturer located in Bromont, Quebec that
manufactures and maintains high capacity 1 Megawatt or more wind turbines
principally for the North American market. Its strategy is to progressively
build its product's 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 Company's website at
www.aaer.ca.

    
    Forward-Looking Statements
    --------------------------
    
    This news release contains certain forward-looking statements. These
statements relate to future events or AAER's future economic performance and
reflect the current assumptions and expectations of management. Certain
unknown factors may affect the events, economic performance and results of
operations described herein. AAER undertakes no obligation, and does not
intend to, update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as may be
required under applicable law.

    
         The TSX Venture Exchange does not accept 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., Glen Williams, Telephone:
(416) 815-0700 Ext. 272, gwilliams@equicomgroup.com

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