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Renewable Energy Leaders Partner on a Mexico-Based Wind Farm

San Diego, CA – Cannon Power Group and Gamesa Technology Corp., Inc. (“Gamesa”) announced today that they have entered into an agreement for the development of a series of wind farms known as the Aubanel Wind Project in Baja California, Mexico near the town of La Rumorosa – approximately 60 miles east of San Diego and 15 miles south of the U.S.-Mexico border.

Cannon Power Group will act as the project’s lead developer and Gamesa, one of the world’s leading turbine manufacturers, will supply as part of a 10-year exclusivity agreement all of the wind turbines installed at the project sites developed by Cannon in the area. Also, Gamesa will provide additional support, maintenance and limited development services.

The Aubanel Wind Project is expected to be one of North America’s largest wind farms with potential capacity of 1,000 MW at various stages of development. The first phase of the project calls for the installation of between 70MW to 100MW of wind turbines. Groundbreaking at this wind farm is scheduled to occur sometime in the next 12 months, with additional construction taking place over the next three to four years. Power produced from the phase 1 project is expected to be sold to customers in Mexico, with subsequent project phases selling power to both Mexico and U.S. customers.

The companies.

“Cannon Power Group is one of the most experienced wind project developers in the renewable energy market, so we are very pleased to collaborate with them on this project,” said Dirk Matthys, Gamesa’s CEO in North America. “This exciting new relationship will further strengthen Gamesa’s leadership in the Mexican market where we already have a substantial presence.”

“We are delighted to be working with Gamesa, a pioneer in wind and one of the premier wind turbine manufacturers in the world today,” said Gary Hardke, Cannon Power Group’s President and Managing Director. “Gamesa’s experience, technology and technical support will be invaluable as we move forward to develop a strong presence in the Mexican market.”

The Aubanel Wind Project will create substantial employment and economic development opportunities in Baja, California. However, a significant amount of the capital equipment – blades, nacelles, towers, and transformers, to name a few – are expected to be sourced from the U.S. Beginning in 2005, Gamesa established a headquarters and manufacturing facilities in Pennsylvania.

“This will be a win-win for Mexico and the United States — the clean power and jobs will be shared on both sides of the border,” said Hardke. “We envision this as a major cross-border project — potentially in excess of a billion dollars – – that can both stimulate the region’s economy and provide enough clean energy for over 250,000 households.”

The project’s 140 square-mile site is on land leased by a subsidiary of Cannon Power Group from the Ejido Aubanel Vallejo. This region is widely recognized as one of the best wind resource areas in North America. Construction is expected to begin within 12 months and the project will be built in phases over the next three to four years.

“We commend the leadership and vision of Gov. José Guadalupe Osuna Millán and David Muñoz, director general of the Baja California Energy Commission, for their support of renewable energy in Baja California,” Hardke continued.

Cannon Power Group has a proven track record of making large wind projects an economic engine for rural communities and they intend on reproducing their success with the Aubanel Wind Project.

“We look forward to working with cross-border governments and private stakeholders, and partnering with the La Rumorosa/Baja California community to support their economic and employment needs as we develop this project,” said Hardke.

The project will operate in Mexico through a wholly-owned subsidiary, Rumorosa Wind Developers. Working with Cannon Power Group in the project development will be its Mexican partners, Monarch Management Services (John Prock, Principal) and Foglio & Associates, a Mexican law firm (Oscar Foglio, Principal).