Railpower Technologies Corp. announces closing of the $20 million private placement with Ontario Teachers Pension Plan Board (Teachers)

    BROSSARD, QC, June 27 /CNW Telbec/ - Railpower Technologies Corp.
(TSX: P) (the "Corporation") is pleased to announce that it has closed its
previously announced $20 Million private placement with Teachers. The proceeds
will be used to finance, among other things, construction of a manufacturing
facility in Saint-Jean-sur-Richelieu.
    Teachers' private placement consists of the issuance of a secured
convertible debenture on terms similar to its last investment. The debenture
will mature on January 4th, 2013, and will bear interest at a rate of 5% per
annum, payable semi-annually in either cash or common shares, at the
discretion of Railpower. The initial principal amount of the debenture will be
convertible, at the election of the holder, in whole or in part, into either
common shares or restricted voting shares, or any combination thereof, at a
conversion ratio of $0.40 per share, representing up to 50,000,000 shares.
This debenture along with the initial debenture will be transferable two years
after its issuance.
    "We appreciate the confidence in our Corporation's potential and business
strategy in relation to the plant, that Teachers demonstrated by making this
investment as well as our shareholders' support who voted massively in favour
of the placement" said Mr. Mathieu, President and CEO of Railpower.

    About Railpower

    Railpower Technologies (TSX: P) develops, markets, produces and sells
specialized, patented, environment-friendly technology systems 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. It 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, the ability to retain our employees, product
development or manufacturing delays, the ability of our current manufacturing
supplier 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 to build, rent or buy a manufacturing facility, 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.

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

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