VRB Power reports Q3 2007 financial results



    RICHMOND, BC, Nov. 27 /CNW/ - VRB Power Systems Inc. (TSX-V: VRB) today
reported its financial results for the nine month period ended September 30,
2007.
    The following is a summary of the key points for the period, updated to
November 21, 2007
    (Note - all dollars Canadian)

    
    -   Sales revenue and other income was $411,548 for the six months
        compared to $226,842 for the comparative period in 2006;
    -   Operating expenses were $10,178,769 for the period compared to
        $7,765,330 for the comparative period in 2006;
    -   Net loss of $9,767,221 for the period ($0.07 per share) compared to
        $7,538,488 ($0.07 per share) for the comparative period in 2006;
    -   In November 2007, VRB announced that Winafrique Technologies Ltd.,
        with Safaricom Limited, the leading mobile telephone operator in
        Kenya purchased two 5kW x 4hr VRB Energy Storage Systems ("VRB-ESS")
        to be deployed at two remote telecommunications sites in Kenya owned
        by Telkom Kenya and Vodafone Group Plc. The sale marks the initial
        phase for a potential roll out of multiple systems at cellular
        telecommunications sites across East Africa, with 300 possible sites
        identified in Kenya alone;
    -   In conjunction with the sale, VRB Power signed a distribution
        agreement with Winafrique for the 5kW VRB-ESS in Kenya. Under the
        terms of the agreement, Winafrique will sell, install and integrate
        the systems at the chosen cellular sites; monitor and service the
        systems once installed and also provide some of the electrical
        components.
    -   In addition to its internal sales team, the Company now has sales
        representatives in North America, India, Europe (covering territories
        of Denmark, Slovenia, Hungary, Italy, Albania, Malta, Czech Republic
        and Portugal) and Kenya;
    -   In November 2007, the Company partnered with Sartelco Energia Srl to
        showcase the 5kW VRB-ESS(TM) at the World Energy Congress 2007 (WEC)
        in Rome, Italy. The WEC is held every three years and is recognised
        as the world's premier multi-energy event with over 5,000 delegates
        from 100 countries;
    -   In October 2007, the Company consolidated its offices and moved its
        headquarters from downtown Vancouver to the second floor of the VRB
        Richmond Facility; and
    -   Within the last period, VRB Power Systems was featured in several
        media publications including Renewable Energy World (Sept/Oct issue),
        The New York Times (July 2007), Environmental Health Perspectives
        (July 2007), Cooperative Research Network (July 2007) and The
        Financial Times (June 2007).
    

    The consolidated financial statements of the Company for the period ended
September 30, 2007 and Management's Discussion and Analysis ("MD&A") thereon
were prepared in accordance with Canadian generally accepted accounting
principles and are presented in Canadian dollars. The Consolidated Balance
Sheets, Consolidated Statements of Operations and Deficit and Consolidated
Statements of Cash Flows are set out below. The full financial statements and
MD&A have been filed on SEDAR (www.sedar.com).

    About VRB Power

    Headquartered in Richmond, Canada, VRB Power Systems Inc. is an energy
storage technology developer which is marketing, selling and manufacturing
products utilizing the patented VRB Energy Storage System ("VRB-ESS(TM)"). The
VRB-ESS can economically store and supply large amounts of electricity on
demand and is focused on stationary applications. It is a long life, cost
effective, low maintenance, efficient technology that allows for the
scalability of power and storage capacity independently. The VRB-ESS is
particularly beneficial to renewable energy providers, utilities and end users
through its ability to "inventory" electricity, allowing for the optimal match
of supply and demand.
    The VRB-ESS is well suited for a variety of applications. Enabling the
provision of "firm" capacity from intermittent renewable generation such as
wind and solar; more cost effective and efficient generation of electricity in
remote areas; capital deferral for utilities; and load levelling (peak
shaving) applications. The VRB-ESS is also capable of providing backup power
solutions including applications for utility sub-stations and
telecommunication sites. The VRB-ESS is characterized by having the lowest
ecological impact of all energy storage technologies and is unlike most other
conventional energy storage systems that rely on substances such as lead or
cadmium.

    Caution regarding forward-looking statements: VRB Power's press releases
may contain forward-looking statements. These statements are based on
management's current expectations and beliefs which are subject to a number of
known and unknown risks and uncertainties (including, but not limited to, the
risk factors described in VRB Power's Annual Information Form filed with the
British Columbia Securities Commission and available at www.sedar.com) that
could cause actual results to differ materially from those expressed or
implied in our forward-looking statements. The Company does not assume any
obligation to update any forward-looking statements contained in this press
release.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    Vince Sorace
    President


    
    VRB Power Systems Inc.
    Consolidated statements of operations and deficit
    nine months ended September 30, 2007 and 2006
    Unaudited


                     Three months ended Sept. 30  Nine months ended Sept. 30
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
                                 $             $             $             $
    Revenue
      Sales                 71,579        16,800       128,842        89,085
    -------------------------------------------------------------------------

    Expenses
      General and
       administrative    2,131,764     1,190,578     6,084,390     4,170,690
      Research and
       development         885,128       723,775     2,146,290     1,833,567
      Amortization of
       intangible assets   507,246       507,245     1,521,734     1,520,613
      Amortization of
       plant and
       equipment           156,949        95,042       426,355       240,460
    -------------------------------------------------------------------------
                         3,681,087     2,516,640    10,178,769     7,765,330
    -------------------------------------------------------------------------

    Operating loss      (3,609,508)   (2,499,840)  (10,049,927)   (7,676,245)
    -------------------------------------------------------------------------

    Other items
      Interest and
       other income        138,055        27,119       282,706       137,757
    -------------------------------------------------------------------------
                           138,055        27,119       282,706       137,757
    -------------------------------------------------------------------------

    Net loss            (3,471,453)   (2,472,721)   (9,767,221)   (7,538,488)
    Deficit, beginning
     of period         (64,807,612)  (52,825,219)  (58,511,844)  (47,759,452)
    -------------------------------------------------------------------------
    Deficit, end of
     period            (68,279,065)  (55,297,940)  (68,279,065)  (55,297,940)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Loss per share -
     basic and diluted       (0.02)        (0.02)        (0.07)        (0.07)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Weighted average
     number of shares
     outstanding -
     basic and
     diluted           146,698,032   107,335,531   132,203,114   107,208,030
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    VRB Power Systems Inc.
    Consolidated balance sheets
    as at September 30, 2007 and December 31, 2006
    Unaudited

                                                  September 30,  December 31,
                                                          2007          2006
    -------------------------------------------------------------------------
                                                             $             $
    Assets
    Current assets
      Cash and cash equivalents                      2,934,083     6,884,870
      Short-term investments                        11,519,948     2,501,562
      Accounts receivable                              137,876       138,864
      Deposits and other receivables                   297,210       249,041
      Inventory                                      1,142,180       677,451
    -------------------------------------------------------------------------
                                                    16,031,297    10,451,788

    Raw material inventory                             778,848       788,532
    Plant and equipment                              2,319,514     1,693,916
    Intangible assets                                5,162,712     6,684,446
    Restricted cash                                          -       325,231
    -------------------------------------------------------------------------
                                                    24,292,371    19,943,913
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current liabilities
      Accounts payable and accrued liabilities         993,556       900,479
    -------------------------------------------------------------------------

    Shareholders' equity
    Share capital                                   87,523,386    74,400,898
    Contributed surplus                              4,054,494     3,154,380
    Deficit                                        (68,279,065)  (58,511,844)
    -------------------------------------------------------------------------
                                                    23,298,815    19,043,434
    -------------------------------------------------------------------------
                                                    24,292,371    19,943,913
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Approved on behalf of the Board

    Signed - Vincent Sorace                    Signed - Timothy Hennessy
    ----------------------------               -----------------------------
    Vincent Sorace, Director                   Timothy Hennessy, Director



    VRB Power Systems Inc.
    Consolidated statements of cash flows
    nine months ended September 30, 2007 and 2006
    Unaudited

                     Three months ended Sept. 30  Nine months ended Sept. 30
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
                                 $             $             $             $

    Operating activities
      Net loss          (3,471,453)   (2,472,721)   (9,767,221)   (7,538,488)
      Items not affecting
       cash
        Amortization       664,195       602,287     1,948,089     1,761,073
        Stock-based
         compensation      185,010        11,349       702,867       488,863
      Change in non-cash
       working capital
        (Increase)/decrease
         in accounts
         receivable        (80,613)            -           988             -
        (Increase)/decrease
         in deposits and
         other
         receivables       (53,803)        3,358       (48,169)     (114,120)
        (Increase)/decrease
         in inventory       16,114       (73,445)     (455,045)     (510,363)
        Increase/(decrease)
         in payable
         accounts           37,137      (609,579)       93,077        85,981
    -------------------------------------------------------------------------
                        (2,703,413)   (2,538,751)   (7,525,414)   (5,827,054)
    -------------------------------------------------------------------------

    Financing activities
      Issuance of common
       shares, net of
       issue costs      13,319,735    10,581,653    13,319,735    10,581,653
    -------------------------------------------------------------------------

    Investing activities
      Increase in
       short-term
       investments     (11,519,948)            -    (9,018,386)            -
      Purchase of plant
       and equipment      (364,415)     (247,246)   (1,051,953)   (1,200,861)
      Acquisition of
       technology
       licence                   -       (11,200)            -       (11,200)
      Decrease in
       restricted cash     193,147        48,241       325,231       146,932
    -------------------------------------------------------------------------
                       (11,691,216)     (210,205)   (9,745,108)   (1,065,129)
    -------------------------------------------------------------------------

    Net cash inflow/
     (outflow)          (1,074,894)    7,832,697    (3,950,787)    3,689,470
    Cash and cash
     equivalents,
     beginning of
     period              4,008,977     3,799,002     6,884,870     7,942,229
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period       2,934,083    11,631,699     2,934,083    11,631,699
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Cash and cash
     equivalents
     consist of:
      Cash                 395,397       537,814       395,397       537,814
      Short-term money
       market
       investments       2,538,686    11,093,885     2,538,686    11,093,885
    -------------------------------------------------------------------------
                         2,934,083    11,631,699     2,934,083    11,631,699
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    





For further information:

For further information: VRB Power Systems Inc. at (604) 247-3300;
Investor Relations at (604) 247-5001, Or visit the company's web site at:
www.vrbpower.com

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VRB POWER SYSTEMS INC.

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