Cleanfield Reports 56% Increase in Quarterly Revenues and Positive Cash Flow

HAMILTON, ON, Jan. 27 /CNW/ - Cleanfield Alternative Energy Inc. (TSX-V: AIR) ("Cleanfield"), an international leader in Vertical Axis Wind Turbine (VAWT) solutions, announced today the financial results for its second fiscal quarter ended November 30, 2009. Cleanfield's unaudited interim consolidated financial statements and MD&A for second quarter are available on www.SEDAR.com.

Financial highlights: Compared to the same fiscal periods in the previous year, revenue increased 56% in the second quarter, and 17% for the six months ended November 30, 2009. Gross margin rose to a record high in the second quarter and year-to-date from the same period in the previous year, and expenses in the quarter were down 61%. As a result, total loss in the quarter was down 68%, and the loss per share dropped to $0.01 from $0.04. Cash flow provided by operating activities turned positive in the second quarter ended November 30, 2009.

Cleanfield has a sales order backlog of approximately $1.1 million, most of which is expected to be reflected in revenues during the balance of the fiscal year.

    
    -------------------------------------------------------------------------
               Three months ended November 30   Six months ended November 30
              ---------------------------------------------------------------
                   2009        2008  Change        2009         2008  Change
    -------------------------------------------------------------------------
    Revenue    $153,910     $98,855     56%    $217,183      $186,228    17%

    Loss      $(303,989)  $(954,854)  (68)%   $(654,319)  $(2,025,927) (68)%

    Loss per
     share       $(0.01)     $(0.04)  (75)%      $(0.02)       $(0.09) (78)%
    -------------------------------------------------------------------------
    

Cleanfield's CEO Tony Verrelli said, "We are very pleased with the significant improvements in our financial performance. Revenue is rising with continued market penetration of our industry leading V3.5 VAWT. In addition, we have managed to significantly reduce our expenses and therefore our losses. We expect revenue during the balance of the fiscal year to rise substantially."

Granting of Stock Options: Cleanfield also announced that it granted 210,000 stock options to Directors of the company. All options are exercisable at a price of $0.24 cents per common share, and expire on January 27, 2015.

About Cleanfield Alternative Energy Inc.: Cleanfield is committed to developing efficient renewable energy products primarily for the urban environment. The Company produces an industry-leading VAWT, which can be installed in various ways, produces green renewable energy quietly and cost effectively and is sold worldwide. Cleanfield also provides purchase financing to qualified customers, and is developing solar photovoltaic products for commercialization.

Advisory notices: The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Certain statements in this news release may be considered to be forward-looking. These statements relate to future events or Cleanfield's future results including revenues and reflect the current assumptions and expectations of management. Unknown factors may affect the events, performance, revenues and results of operations described herein. Cleanfield 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 laws.

SOURCE Cleanfield Alternative Energy Inc.

For further information: For further information: Go to www.cleanfieldenergy.com, or contact Tony Verrelli, CEO, Cleanfield Energy, (905) 304-5223, info@cleanfieldenergy.com

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