Railpower Technologies postpones completion of the new manufacturing facility



    TSX Symbol: P

    BROSSARD, QC, Oct. 6 /CNW Telbec/ - Railpower Technologies Corp.
(TSX: P), today reported that it will postpone the completion of the new
assembly plant in Saint-Jean-sur-Richelieu, Quebec, which was initially
planned for completion in the first quarter of 2009. The Company started the
construction of the facility in June of 2008, and does not expect to restart
it until new significant orders are secured.
    "The measure aims at preserving cash due to slower sales than
anticipated. Certain expected large orders have been delayed this year by
customers due to the economic slowdown and other factors related to delayed
governmental subsidies in the United States" said Mr. Mathieu, President and
CEO of Railpower. "To our knowledge, no significant orders have been awarded
by the large Class I Railways to any of the low horsepower locomotives
manufacturers In North America, during the year" added Mr. Mathieu.
    The Company has also decided to put in place a cost reduction plan which
includes, among other things, the elimination of certain employment positions
in order to lower its costs and continue operations to meet current and future
customers' requirements.

    About Railpower

    Railpower Technologies (TSX: P) develops, markets, produces and sells
specialized, patented, environment-friendly locomotives and power plants for
the transportation and related industries. Railpower's technologies
significantly reduce fuel usage, operating and maintenance costs and
emissions. While Railpower's origins are in the transportation industry, its
technologies have broad potential and applications in other markets and
industries. Railpower is headquartered in Brossard, Quebec. Its U.S. office is
located in Erie, Pennsylvania. (www.railpower.com)

    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 comply with the
covenants and conditions contained in our outstanding convertible debentures
with Teachers,, 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: 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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