Legend Power Systems Inc. Reports Annual Financial Results for 2009

BURNABY, BC, Jan. 13 /CNW/ - Legend Power Systems Inc. (TSX.V: LPS) ("Legend"), is pleased to announce their annual financial results for 2009. "In our quest for success and establishment as a formidable player in the energy saving sector, we at Legend have focused for the past few months on transforming from our last stage of development. We have single-mindedly concentrated on our sales and marketing efforts to commence the next phase in Legend's history as a profitable entity and have made significant progress to that end. In that process, we have seen opportunities for our customers as well, to improve their bottom lines by achieving energy savings and thereby achieving our common secondary goals and objectives of contributing to a greener, more-efficient and sustainable environment," says Gerry Gill, Chairman and CEO.

    
    Operational Highlights for 2009:

    -   Following capitalization in September, we assembled professional and
        competent management and sales teams to execute the program.

    -   We eliminated debt so our financial position is healthy and secure,
        allowing for sales and marketing efforts to be properly funded. We
        also installed appropriate systems for monitoring lead generation and
        customer fulfillment.

    -   Our successful marketing program has resulted in an increased
        awareness of our technology, specifically for its simplicity, logic
        and effectiveness.

    -   Our consolidated audit and sales teams in Ontario have performed
        building audits in facilities resulting in proposals with the
        potential for sales being more imminent than ever.

    -   The measurement and verification process to document the savings and
        overall performance of the Electrical Harmonizer-AVR has been refined
        and is being implemented successfully.

    -   The Electrical Harmonizer-AVR continues to qualify for incentive
        funding in British Columbia. The BOMA (Building Owners and Managers
        Association) incentive funding in Ontario has recently doubled,
        substantially reducing the payback period for our customers and
        effectively defeating some ROI concerns in their purchase decision
        process.

    -   Our R&D program will continue to be partially funded with a grant
        from the Industrial Research Assistance Program (IRAP), a division of
        the National Research Council of Canada, allowing Legend Power to
        assume leadership in the development of new and improved
        technologies.
    

2009 Annual Financial Highlights, Audited:

Revenues for the year ended September 30, 2009 (the "Year") were $24,079 compared to $690,212 during the same period in 2008 (the "Prior Year"). The revenues in 2009 were primarily from revenue sharing installations.

Expenses for the Year decreased to $2,393,214 from $2,714,210 during the Prior Year, mainly due to a reduction in salaries and in legal costs.

Net loss for the Year was $2,298,150 or $0.09 loss per share (basic and diluted) compared to a net loss of $2,294,753 or $0.15 loss per share (basic and diluted) during the Prior Year.

    
    -------------------------------------------------------------------------
    INCOME STATEMENT

    For the year ended September 30                       2009          2008
                                                          ----          ----
    -------------------------------------------------------------------------
    Revenue                                            $24,079      $690,212
    Total expenses                                  $2,393,214    $2,714,210
    Income (loss) before other items               $(2,371,259)  $(2,382,795)
      Per share basic and diluted                       $(0.09)       $(0.16)
    Net income (loss)                              $(2,298,150)  $(2,294,753)
      Per share basic and diluted                       $(0.09)       $(0.15)
    Weighted average shares outstanding             27,446,339    15,295,038
    -------------------------------------------------------------------------

    Cash and cash equivalents as at September 30, 2009, was $3,177,060
compared to $690,455 for the same period in 2008.
    As at September 30, 2009, the Company had working capital of $3,334,592
compared to $875,290 in the same period in 2008.

    -------------------------------------------------------------------------
    BALANCE SHEET

    As of September 30                                    2009          2008
                                                          ----          ----
    -------------------------------------------------------------------------
    Total assets                                    $5,022,321    $2,941,749
    Current liabilities                               $301,714      $454,056
    Shareholders' equity                            $3,774,841    $1,792,548
    Cash dividend paid                                       -             -
    -------------------------------------------------------------------------
    

Legend Power's detailed financial information for the years ending September 20, 2009 and 2008 along with accompanying Management's Discussion and Analysis for the same period are available on SEDAR (www.sedar.com).

About Legend Power Systems Inc.

Legend Power Systems Inc. (www.legendpower.com) 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 helps companies reduce their electricity bills, maintenance costs, and increases the life of electrical equipment, while contributing to a reduction in green house gas emissions. View "Legend Power Corporate Video" on YouTube at http://www.youtube.com/watch?v=EcBIFsXZTIA

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.

Forward Looking Information

This release and referenced materials contain forward looking statements, within the meaning of the "safe-harbour" provisions of the Private Securities Act of 1995, which are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in our forward looking statements. Factors that could cause actual results to differ materially include: rapid technological and/or market changes in the industry including actual electrical billing rates; the adequate protection of the Company's proprietary rights; and other factors described in the Company's regulatory filings. Although we believe the expectations reflected in our forward looking statements are reasonable, individual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.

    
    LEGEND POWER SYSTEMS INC.
    8618 Commerce Court, Burnaby BC, V5A 4N6
    

SOURCE Legend Power Systems Inc.

For further information: For further information: Gerry Gill, CEO, Legend Power Systems Inc., ggill@legendpower.com; Investor Relations: Stuart Omsen, Director of Corporate & Business Development, Legend Power Systems Inc., somsen@legendpower.com

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Legend Power Systems Inc.

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