Railpower Technologies Corp. announces closing of the $35 Million private placement with Ontario Teachers Pension Plan Board (OTPP)

    BROSSARD, QC, Jan. 4 /CNW Telbec/ - Railpower Technologies Corp. (TSX: P)
(the "Corporation") is pleased to announce that it has closed its previously
announced $35 Million private placement with OTPP.
    The private placement consists of the issuance of a convertible debenture
which has a maturity date of five years from its date of issuance and has an
interest 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 is convertible, at the election of the holder, in whole or in part,
into either common shares or a new class of convertible restricted voting
shares created by the Corporation, or any combination thereof, at a conversion
ratio of $0.30 per share, representing up to 116,666,667 shares. The new class
of convertible restricted voting shares is convertible into common shares, at
the option of the holder, on a one-for-one, share for share basis (subject to
customary adjustments, including for subdivision or consolidation).
    "With this investment, we believe we now have the necessary base to
consolidate our leadership in the locomotive market in North America, pursue
our research and development efforts and expand our marketing activities in
other geographic areas", said Mr. José Mathieu, President and CEO of Railpower
Technologies Corp. "We appreciate the confidence in our Corporation's
potential that OTPP demonstrated by making this investment as well as our
shareholders' support who voted massively in favour of the placement."

    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)

    About Ontario Teachers' Pension Plan

    With $106 billion in net assets as of December 31, 2006, the Ontario
Teachers' Pension Plan is the largest single-profession pension plan in
Canada. An independent organization, it invests the pension fund's assets and
administers the pensions of 271,000 active and retired teachers in Ontario. At
year end, approximately 40 percent of the fund was invested in public
equities. As a long-term investor in Canadian stocks, the Ontario Teachers'
Pension Plan's public equities program features a Relationship Investing
portfolio that includes large-scale strategic investments in public companies.

    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,
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,
product development or manufacturing delays, 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, 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, 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. We do not intend and 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: Mr. José Mathieu, President and CEO, Railpower
Technologies Corp., (450) 678-5277, ext. 501, Toll free: 1-866-678-5277,

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