CVTECH GROUP INC. OBTAINS NEW CONTRACTS TOTALLING US$30.3 MILLION

All contracts awarded to subsidiary Riggs Distler & Company, Inc.

DRUMMONDVILLE, QC, April 20 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or the "Corporation") (TSX: CVT) today announced that its subsidiary Riggs Distler & Company, Inc. ("Riggs Distler") has been awarded several contracts with a total value of US$30.3 million.

First, the value of a contract currently included in the Corporation's backlog has been increased by more than US$12.5 million. This contract, awarded by a major Maryland electric and natural gas provider, is for the maintenance of underground electrical distribution networks until the end of 2016. The total contract value now reaches over US$60.0 million, up from US$47.5 million previously.

Second, a New Jersey electric provider awarded a new four-year contract valued at over US$6.0 million for the installation of underground electrical infrastructure using the directional drilling method.

Third, Riggs Distler has obtained several new contracts totalling US$6.8 million to provide services for electrical transmission networks and substations for electric utility companies in New Jersey and Pennsylvania. These projects will be completed in 2011 and are designed to improve electric reliability and implement smart grid technologies.

Finally, a major electric generation company awarded two new mechanical contracts valued at US$5.0 million involving the provision of maintenance services for coal-fired boilers in Maryland and New York. This work will be completed within eight months.

OVERVIEW OF THE CORPORATION
CVTech is a management corporation that operates in two major sectors. Through Thirau ltée, and its subsidiary, Thirau LLC, the Corporation services the electrical utility industry with the construction and maintenance of transmission and distribution lines primarily in Quebec and the eastern United States. Thirau ltee's subsidiary, J.J.L. Déboisement inc., specializes in vegetation control surrounding the lines and clearing the lines' rights of way. Thirau LLC also possesses a wholly-owned subsidiary, Riggs Distler & Company, Inc., an important provider of maintenance and construction services to the utility and heavy industrial markets. Through CVTech-IBC Inc., the Corporation services the vehicle industry through the design, manufacture and sale of continuously variable power transmission systems, or CVTs. CVTech-AAB specializes in rebuilding crankshafts and cylinders, as well as distributing engine parts.

FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements that reflect management's current beliefs 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 has no obligation beyond what is required under the law to update or revise forward-looking statements pursuant to new information or future events.

For further information regarding CVTech, the reader may consult the SEDAR database as well as the Corporation's web site at: www.cvtech.ca.

SOURCE CVTECH GROUP INC.

For further information:

Source: CVTech Group Inc.

Contacts:
André Laramée, MBA
President and Chief Executive Officer  
(819) 479-7771
a.laramee@cvtech.ca  
Mario Trahan, CMA
Chief Financial Officer  
(819) 479-7771
m.trahan@cvtech.ca  
MaisonBrison
Martin Goulet, CFA
(514) 731-0000 
martin@maisonbrison.com

 

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