Railpower Announces Reduction in Workforce



    TSX Symbol: P

    BROSSARD, QC, Jan. 28 /CNW Telbec/ - Railpower Technologies Corp. (TSX:
P) announced today that it is reducing its workforce by 37%, from 134 to 84
employees. This decision is further to the Corporation's previously announced
cost reduction plan.
    "It is difficult to have to lay off so many talented members of our team.
We recognize their hard work and dedication in building the Corporation's
business and regret that we have no other option but to reduce costs," said
José Mathieu, President and Chief Executive Officer of the Corporation.
    As previously disclosed, the Corporation's continued viability depends on
its ability to rebuild its order backlog and secure new sales with its
customers. In light of the current context, the Corporation has commenced
reviewing and evaluating all available alternatives, including obtaining
additional sources of financing in the form of debt or equity and selling the
Corporation, which may take the form of a sale of its shares or assets.
Despite undertaking these and other strategies, the Corporation's ability to
continue as a going concern and to realize the carrying value of its assets
and discharge its liabilities cannot be guaranteed.

    About Railpower

    Railpower (TSX: P), (www.railpower.com) is engaged in the development,
construction, marketing and sales of high performance, clean locomotives and
power plants for the transportation and related industries. The Corporation
has designed and is marketing a range of locomotives for the North American
low and medium horsepower locomotive market. It has also designed and is
marketing hybrid power plants for rubber tyred gantry cranes (Eco-Cranes(R)).
Its technologies have broader potential and applications in other markets and
industries.

    Caution regarding forward-looking statements

    Certain statements contained in this release contain forward-looking
statements. When used in this document, the words "may", "would", "could",
"will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and
similar expressions may be used to identify forward-looking statements. Those
statements reflect our current views with respect to future events or
conditions, including prospective results of operations, financial position,
and predictions of future actions, plans or strategies. Certain material
factors and assumptions were applied in drawing our conclusions and making
those forward looking statements. By their nature, those statements reflect
management's current views, beliefs and assumptions and are subject to certain
risks and uncertainties, known and unknown, including, without limitation, the
ability to secure new orders or new financing, our ability to secure the sale
of our shares or assets, our ability to comply with the covenants and
conditions contained in our outstanding convertible debentures with Ontario
Teachers Pension Plan Board, the ability to retain our employees, product
development or manufacturing delays, the ability of our current manufacturing
suppliers to meet our production demands in terms of quantity, quality and
costs, our ability to reach a satisfactory agreement with another supplier if
necessary or, the ability to restart the construction of our manufacturing
facility and if restarted, to construct our manufacturing facility on time and
within the forecasted budget, changing environmental regulations, the ability
to attract and retain business partners, the acceptance of our existing and
new products, future levels of government funding, the need to obtain and
maintain proprietary rights over our technology, competition from other
technologies or new competitors, the ability to access the capital required
for research, product development, operations and marketing, the need to
generate positive cash flow in the foreseeable future, potential legal
liability related to the recall of our Green Goat(R) locomotives, changes in
energy prices and currency levels. Many factors could cause our actual
results, performance or achievements to be materially different from any
future results, performance or achievements that may be expressed or implied
by these forward-looking statements. Should one or more of these risks or
uncertainties materialize, or should the assumptions underlying our
projections or forward-looking statements prove incorrect, our actual results
may vary materially from those described in this report as intended, planned,
anticipated, believed, estimated, or expected. Unless otherwise required by
law, we do not intend or do not assume any obligation to update these
forward-looking statements whether as a result of new information, plans,
events or otherwise.
    %SEDAR: 00016554EF




For further information:

For further information: José Mathieu, President and Chief Executive
Officer, Railpower Technologies Corp., (450) 678-5277 ext.526, Toll Free:
1-866-678-5277, jmathieu@railpower.com; Kamila Wirpszo, Vice-President,
General Counsel and Corporate Secretary, Railpower Technologies Corp., (450)
678-5277 ext.518, Toll Free: 1-866-678-5277, kwirpszo@railpower.com

Organization Profile

RAILPOWER TECHNOLOGIES CORP.

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