MicroPlanet Reports Q3 Results

Stock Listing: MP:TSXV
Stock Listing (US): MCTYF: OTC
Web Site: www.microplanet.com

SEATTLE, WA, Nov. 19 /CNW/ - MicroPlanet, (MP:TSXV & MCTYF:OTC) a provider of energy conservation and power quality products, today reports interim unaudited consolidated financial results for the three-month and nine-month periods ended September 30, 2010. All dollar figures are reported in U.S. currency, unless otherwise stated. 

During the three-month period ended September 30, 2010, MicroPlanet continued to execute on detailed strategies to enhance its product line and product distribution network.  The Company entered into new distribution agreements with partners in different vertical markets and jurisdictions, and completed its placement on the United States Government's General Services Administration schedule of products and services available to government purchasers. The Company also announced the sale of power quality/energy conservation systems to the Hawaii National Guard, and was able to leverage a recently-announced patent award in the European Union by delivering its Low Voltage Regulation products to an energy utility in Ireland.

"MicroPlanet continues to focus its sales and marketing efforts around a commercial distribution model designed to accelerate acceptance of the Company's products in the marketplace," said Brett Ironside, President and CEO. "MicroPlanet is actively developing new products to address known customer demand in both existing and new markets, and is linking the development of these new products with a more appropriate and robust distribution strategy. As we add additional distribution partners in the coming months, we believe that these efforts will lead to meaningful results in coming quarters as customers increasingly look for opportunities to reduce costs through energy savings projects."

"We are very excited about opportunities we are seeing in the fast-growth voltage optimization market in the European Union and the United Kingdom in particular," Ironside continued. "We are pleased to announce that we will be presenting at the Envirotech & Clean Energy Investor Summit in London next month. This will be an important launching point as we aggressively work to expand our presence into jurisdictions such as the UK which have vibrant and growing voltage optimization markets."

During the third quarter, the Company deferred delivery of some of its utility products in order to execute a long-term strategic decision to diversify its manufacturing vendor base and implement intellectual property safeguards by partitioning certain sub-assemblies and adding specialized vendors for specific manufacturing functions. "This decision to broaden our manufacturing partnerships was strategic in nature, and is designed to better position the Company over the long term in terms of diversity of supply and cost performance, intellectual property protection, regular and predictable product delivery schedules, and stable gross margins for the coming quarters," said Ironside. The diversification of the vendor base coincided with an expected and predicted global shortage of key electrical components caused by the recent economic slowdown.

As a result of these factors, the Company did not manufacture new inventory during the Quarter, shipping only inventory on hand. The Company has commenced manufacturing activities with its expanded contract manufacturing partners and plans a return to its quarterly production schedule for Q4 2010. As such, MicroPlanet reported revenues of $23,403 for the Quarter. Year-to-date revenues of $1,471,738 are 30% higher than the comparable period in 2009. The Company's backlog of orders at the end of the Quarter remains unaffected by delays in product shipment during the Quarter.

"As we focus on enhancing our distribution and manufacturing capabilities, at the same time we're putting extensive effort into managing our expenses and making sure maximum value is obtained for every dollar we spend," Ironside continued. Expenses for the Quarter decreased by $441,019 or 29% to $1,059,233, compared to $1,500,252 during the Prior Year Quarter.

Net loss for the Quarter was $1,047,890 or $0.02 loss per share (basic and diluted) compared to a net loss of $1,333,938 or $0.03 loss per share (basic and diluted) in the same Prior Year Quarter.

MicroPlanet's financial information for the three-month and nine-month periods ended September 30, 2010 and 2009 along with the accompanying Management's Discussion and Analysis for the same period will be available on SEDAR (www.sedar.com) and company's website at www.microplanet.com.

Financial Highlights:

Income Statement (unaudited) (US$)	3-months ending Sept.  30, 2010	3-months ending Sept. 30, 2009	9-months ending Sept. 30, 2010	9-months ending Sept. 30, 2009
Revenue	$ 23,403	$ 625,338	$ 1,471,738	$ 1,190,880
Gross Margin	$ 10,343	$ 165,171	$ 482,246	$ 286,984
Total Expenses	$ 1,059,233	$ 1,500,252	$ 3,358,101	$ 3,794,978
Net Loss	$ (1,047,890)	$ (1,333,938)	$ (2,872,702)	$ (3,504,243)
Basic and diluted loss per share	$ (0.02)	$ (0.03)	$ (0.06)	$ (0.08)
Weighted average shares outstanding	51,322,706	41,376,890	46,449,326	41,284,208

Closure of Private Placement

On November 18 the Company closed the previously-announced private placement of common stock. The Company closed on $1,029,531 of the Private Placement originally filed with the TSX-V on September 24, 2010. Certain directors and members of Management participated in the Private Placement.

Share issuance in lieu of cash interest payment

On November, 12, 2010, MicroPlanet issued common shares to certain holders of the secured Convertible Notes (the "Notes") in lieu of cash for interest payments. The Notes bear interest at the rate of twelve percent (12%) per annum payable semi-annually in arrears. At the option of the Note holder, interest payments may be made in the form of common shares at an issue price equal to the market price at the time of settlement. In lieu of C$82,271 cash interest payments the Company issued 783,529 common shares at deemed price of $0.105 per share to certain Note holders. The common shares issued are subject to a four-month hold period in accordance with applicable securities laws and stock exchange requirements.

Share grant in lieu of cash compensation

The Company issued 117,705 common shares in the Quarter to the Company's former CEO. The share issuance is pursuant to the agreement to pay a portion of compensation in common shares of MicroPlanet in lieu of cash.  All share grants are subject to a four-month hold period in accordance with stock exchange requirements. This represents the final share grants in relation to these agreements.

About MicroPlanet Technology Corp.

MicroPlanet Technology Corp. solutions improve power quality and save energy by dynamically managing incoming voltage to a home or business through the use of patented, advanced power electronics. MicroPlanet's technology has been deployed in seven countries by more than 20 utilities, the U.S military and multiple commercial customers to save energy, improve power quality and grid efficiency and to facilitate the integration of renewable energy sources, including solar and wind. MicroPlanet is based in Seattle, WA and is listed on the TSX Venture Exchange (TSX-V) trading under the stock symbol: MP. www.microplanet.com.

THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING INFORMATION. ACTUAL FUTURE RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTEMPLATED. THE RISKS, UNCERTAINTIES AND OTHER FACTORS, BOTH KNOWN AND UNKNOWN, THAT COULD INFLUENCE ACTUAL RESULTS MAY BE SUBSTANTIAL AND INCLUDE THOSE DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES, SUCH AS THE COMPANY'S MOST RECENTLY FILED ANNUAL AND QUARTERLY REPORTS AND ANNUAL INFORMATION FORM.  ACCORDINGLY, NO ASSURANCES CAN BE GIVEN THAT ANY OF THE EVENTS ANTICIPATED BY THE FORWARD-LOOKING STATEMENTS WILL TRANSPIRE OR OCCUR, OR IF ANY OF THEM DO SO, WHAT BENEFITS THE COMPANY WILL DERIVE THEREFROM.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THE TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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