Legend Power Systems Inc. is seeking to acquire additional financing of up to $10 million by private placement



    
    /NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICE OR FOR DISSEMINATION IN THE
    UNITED STATES/

    Proceeds Expected to Provide Working Capital to Fund Marketing and Sales
    Initiatives
    

    BURNABY, BC, June 25 /CNW/ - As previously announced, Legend Power
Systems Inc. (TSX VENTURE EXCHANGE: LPS.V) (the "Company" or "Legend Power")
has entered into a management consulting agreement (the "Consulting
Agreement") with Phoenix Alliance Corp. ("Phoenix"). Pursuant to the
Consulting Agreement, Phoenix has agreed to act as Legend Power's advisor with
respect to strategic planning, to provide financial and management consulting
services, and to assist it in completing a private placement. Legend Power is
targeting a proposed offering of up to $10 million in common shares in the
capital of the Company ("Shares") at a subscription price of a minimum of
$0.45 per Share (collectively the "Offering"). Legend Power is seeking this
financing to provide working capital to enable it to launch an intensive sales
and marketing strategy within North America. Gerry Gill, Chairman and CEO of
Legend Power, states:
    "We have completed the research and development phase of our business
plan and with our strategic partners have been able to complete 22 beta tests
with a number of installations of various sizes and configurations all proving
energy savings and lower costs to the users, proving our Harmonizer-AVR is
commercially viable and ready for the marketplace. We are now positioned to
commence the second phase of our business plan which is to complete the
implementation of our sales and marketing strategy which we believe will
better position Legend Power to be cash flow positive. The Offering is
expected to provide the ability to execute this important phase of our
business plan and to allow us to continue building value for our shareholders
and customers."
    Andrew McKinnon, CEO of Phoenix Alliance Corp., states:
    "During the due diligence process conducted by our company we quickly
became aware of the opportunities for growth that exist for Legend Power's
Harmonizer-AVR technology. We arrived at the conclusion that if Legend Power
was capitalized to the extent required to execute this next phase of its
business plan it would have the financial resources to build a sales and
marketing department for rapid growth which in turn should help Legend Power
to establish a leading position in the market place. We and Legend Power's
executive team are well along in the process of developing a competitive
analysis, a competitive strategy and a sales and marketing plan that includes
the personnel buildup required to execute on the plan. Legend Power's Board
and executive team have the skills and experience to lead the company into
this exciting new phase of its business model and we are pleased to be part of
this opportunity."

    
    About Phoenix Alliance Corp.
    ----------------------------
    
    Phoenix Alliance Corp. of Vancouver is a leading business consulting firm
and has been instrumental in developing secondary financing strategies for
companies in both Canada and the United States. Through its network, Phoenix
has introduced its clients to a select group of investors and funds that have
invested in many of these clients.

    
    About Legend Power Systems Inc.
    -------------------------------
    
    Legend Power is a leading electrical energy conservation company that
manufactures and markets a patented device to help commercial and industrial
customers achieve significant energy savings through voltage optimization.
Legend Power's Electrical Harmonizer-AVR eliminates inefficiencies by
delivering the optimal level of voltage a user needs. Many customers receive
higher voltage levels than required at certain points of the grid from
electrical utilities delivering higher levels to compensate for line loss
across the feeder length. Higher than nominal voltage can negatively affect
the lifespan of electrical equipment and result in high monthly utility bills.
By delivering the optimal voltage to the user, Legend Power's Electrical
Harmonizer-AVR helps customers reduce their electricity bills, maintenance
costs and greenhouse gas emissions while increasing the life of electrical
equipment. The technology also decreases capital and operating costs for
electrical utilities.

    Forward-Looking Information

    Statements contained herein that are not based on historical or current
fact, including without limitation statements containing the words
"anticipates," "believes," "may," "continues," "estimates," "expects," and
"will" and words of similar import, constitute "forward-looking statements"
within the meaning of the U.S. Private Securities Litigation Reform Act of
1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause the actual results, events or
developments to be materially different from any future results, events or
developments expressed or implied by such forward-looking statements. Such
factors include, among others, the following: general economic and business
conditions, both nationally and in the regions in which the Company operates;
history of losses and uncertainty of revenues; ability to obtain required
financing; technology changes and/or market changes, including actual
electrical billing rates; adequate protection of the Company's proprietary
rights; competition; changes in business strategy or development plans; and
other factors referenced in the Company's filings with Canadian securities
regulators. With respect to the Company's statements regarding the proposed
Offering and the Company's anticipated cash flow position, and Phoenix's
statements regarding the Company's position in the market place, there are
circumstances and factors that may cause these forward-looking statements to
materially change. Such circumstances and factors include: the Company may not
be able to raise additional capital; the Company may not be able to access
sufficient capital for its operations for the implementation of the next phase
of its business plan, which may require the Company to delay or abandon some
or all of its plans or otherwise forego market opportunities and may make it
difficult for the Company to respond to competitive pressure; the Company's
cash requirements may exceed its estimates; the market targeted by the Company
may fail to develop, may develop more slowly than expected, or may be
successfully and significantly penetrated by competitors; and the Company's
products may not achieve broad market acceptance and sales and revenue targets
may not be met. Although the Company believes that expectations conveyed by
the forward-looking statements are reasonable based on the information
available to it on the date such statements were made, no assurances can be
given as to the future results, levels of activity, performance or
achievements. Given these uncertainties, readers are cautioned not to place
undue reliance on such forward-looking statements. The Company does not assume
the obligation to update any forward-looking statements except as otherwise
required by applicable law.

    
    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.
    





For further information:

For further information: Gerry Gill, Chairman & CEO, Legend Power
Systems Inc., (604) 420-1500, ggill@legendpower.com; LEGEND POWER SYSTEMS
INC., 8618 Commerce Court, Burnaby, BC, V5A 4N6, (604) 420-1500,
www.legendpower.com

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Legend Power Systems Inc.

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