MicroPlanet's Smart Grid Product Sales Increase 262%

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

SEATTLE, Aug. 12 /CNW/ - MicroPlanet, (MP:TSXV & MCTYF:OTC) a smart grid technology energy conservation company, today reports interim unaudited consolidated financial results for the three-month and six-month periods ended June 30, 2010 (the "Quarter"). All dollar figures are reported in U.S. currency, unless otherwise stated.

    
                 -  Achieved sales for the Quarter of $804,955, a 262%
                    increase over Prior Year Quarter
    Highlights   -  Realized Gross Margin of 34%
                 -  Reduced expenses 16% over Prior Year Quarter
                 -  Raised C$1,210,000 in equity with significant board and
                    management participation
    

During the Quarter, MicroPlanet commenced delivery of its next generation distributed voltage optimization products to utilities and commercial enterprises and recorded sales of $804,955, an increase of 262% over the Prior Year Quarter. Gross margins earned on sales were $272,319 or 34% and expenses for the Quarter decreased by 15.8% to $868,316 compared to $1,031,638 during the Prior Year Quarter. Net loss for the Quarter was $594,919 or $0.01 loss per share (basic and diluted) compared to a net loss of $1,043,157 or $0.03 loss per share (basic and diluted) in the same Prior Year Quarter.

"MicroPlanet has made significant progress the past months in controlling and reducing our operating costs while simultaneously increasing our sales and margins," stated Brett Ironside, CEO and President of MicroPlanet. "We are extremely focused and working diligently on several sales and partnership fronts to obtain the next significant sales that will bring us to critical mass and positive cash flow. This milestone will allow us to dedicate even more of our resources to expanding our direct strategic sales efforts as well as global sales and distribution channels and partners."

"During the Quarter, MicroPlanet shifted production to its new generation of distributed voltage optimization systems. Our next generation products offer our customers a compelling combination of power quality improvements and energy savings," continued Ironside. "Our voltage optimization products are providing meaningful and measurable improvements in the quality of power delivered to electricity customers, while conserving energy consumption with extremely high efficiency voltage regulation at the same time. The end result is reduced electric bills, increased equipment life, lower operational and maintenance expenses, and positive environmental contributions by reducing greenhouse gas and carbon emissions. It is this unique blend of real world benefits that will enable MicroPlanet to thrill its customers and outdistance its competition."

MicroPlanet's financial information for the three-month period ended June 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         3-months     3-months     6-months     6-months
     (unaudited) (US$)         ending       ending       ending       ending
                              June 30,     June 30,     June 30,     June 30,
                                 2010         2009         2010         2009
    -------------------------------------------------------------------------
    Revenue               $   804,955  $   222,600  $ 1,448,335  $   565,542
    -------------------------------------------------------------------------
    Gross Margin          $   272,319  $   (12,424) $   471,903  $   121,813
    -------------------------------------------------------------------------
    Total Expenses        $   868,316  $ 1,031,638  $ 2,298,868  $ 2,294,739
    -------------------------------------------------------------------------
    Net Loss              $  (594,919) $(1,043,157) $(1,824,812) $(2,170,318)
    -------------------------------------------------------------------------
    Basic and diluted
     loss per share       $     (0.01) $     (0.03) $     (0.04) $     (0.05)
    -------------------------------------------------------------------------
    Weighted average
     shares outstanding    46,590,227   41,273,620   43,972,249   41,273,099
    -------------------------------------------------------------------------
    

Closes C$1,210,000 Equity Financing and Grants Options

As previously announced, during the Quarter the Company closed a non-brokered private placement equity financing round of C$1,210,000 by issuing 8,642,857 common shares at a price of C$0.14 per share. Directors and management participated for an aggregated amount of C$650,000, or 54% of the financing. The proceeds will be used for the marketing and development of the Company's smart grid and energy conservation products as well as for general working capital needs. The common shares issued pursuant to the private placement financing are subject to a four-month hold period in accordance with applicable securities laws and stock exchange requirements. The Company also granted options to purchase an aggregate of 875,000 common shares at a price of C$0.13 to officers and directors of the Corporation, and 100,000 common shares at C$0.13 to Investorfile.com, the Corporation's investor relations firm. In accordance with the Company's stock option plan, a maximum of 10% of the issued and outstanding common shares of the Company are reserved for issuance pursuant to the exercise of stock options to be granted under the plan.

Share grant in lieu of cash compensation

The Company issued 171,819 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.

About MicroPlanet Technology Corp.

MicroPlanet Technology Corp. is a Smart Grid Technology Energy Conservation Company whose energy management products improves 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.

%SEDAR: 00020555E

For further information: MicroPlanet Investor Relations: Gerry Wimmer, INVESTORFILE.com, Tel: [phone], [email protected]; MicroPlanet Company Contacts: Brett Ironside, President & CEO, Tel: [phone], Fax: [phone], [email protected]; Kurt Maass, CFO, Tel: [phone], Fax: [phone], [email protected]