MicroPlanet's Smart Grid Product Sales Increase 87%; Closes Management Lead
C$1,210,000 Equity Financing

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

SEATTLE, May 13 /CNW/ - MicroPlanet, (MP:TSXV & MCTYF:OTC) a smart grid technology energy conservation company today reports interim unaudited consolidated financial results for the three-month period ended March 31, 2010 (the "Quarter"). All dollar figures are reported in U.S. currency, unless otherwise stated.

In the Quarter, MicroPlanet concluded the deliveries of its first generation voltage regulation products to Utilities and recorded sales of $643,380, an increase of 87% from the same prior year quarter.

At the end of the Quarter, MicroPlanet shifted production to its next generation of voltage management systems based on the company's patented smart grid technology which improves power quality and saves energy by dynamically managing incoming voltage at the point of consumption to optimum levels. "Our next generation products offer Utilities significant advances in performance, functionality and communications capability for energy conservation and the integration of renewable energy sources, including solar and wind," said Brett Ironside, CEO of MicroPlanet. "We have a significant backlog of orders from our utility customers and deliveries of our next generation voltage products have already commenced."

Ironside continued, "Recent visits with key customers around the world have reinforced our view that energy efficiency is paramount and technologies such as ours are gaining acceptance as prospective customers recognize the return on investment, power quality improvements, environmental benefits, and grid stability that can be gained by deploying the class leading smart grid technology offered by MicroPlanet."

Cost of sales for the Quarter was $443,796 compared to $208,705 during same prior year quarter. Cost of sales consists primarily of costs of goods manufactured for the company by others, and direct labor and product costs associated with the installation and trial of MicroPlanet products at customer sites.

Expenses for the Quarter increased by 13.2% to $1,430,552 compared to $1,263,101 during the same prior year quarter. Expenses include the cost of research and development of MicroPlanet's smart grid technology and related products, identifying and developing potential markets for the products and other related activities including general and administrative and interest costs. Also included were severance costs associated with the Company's former CEO.

Net loss for the Quarter was $1,229,893 or $0.03 loss per share (basic and diluted) compared to a net loss of $ 1,127,161 or $0.03 loss per share (basic and diluted) in the same prior year quarter.

MicroPlanet's financial information for the three-month period ended March 31, 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.

    
    First Quarter Financial Highlights:

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    Income Statement (unaudited) US$        3-months ending  3-months ending
                                             March 31, 2010   March 31, 2009
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    Revenue                                       $ 643,380        $ 342,942
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    Gross Margin                                  $ 199,584        $ 134,237
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    Total Expenses                              $ 1,430,552      $ 1,263,101
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    Net Loss                                   $ (1,229,893)    $ (1,127,161)
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    Basic and diluted loss per share                $ (0.03)         $ (0.03)
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    Weighted average shares outstanding          42,256,488       41,200,172
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Closes C$1,210,000 Equity Financing

MicroPlanet announces the closing of a non-brokered private placement equity financing round of C$1,210,000. Directors and Management subscribed for 54% of the financing.

MicroPlanet issued 8,642,857 common shares at a price of $0.14 per common share for gross proceeds of $1.21 million in Canadian dollars. 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 proceeds from the private placement 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.

Company insiders Brett Ironside, President & CEO; Myron Tetreault, Chairman; Alan Richardson, Director; and Kurt Maass, CFO all participated in this equity financing for an aggregated amount of $650,000.

Stock option grant

The Company has granted options to purchase 250,000 common shares at a price of $.13 per share to Mr. Brett Ironside, President and CEO. 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 common stock options to be granted under the plan.

Share issuance in lieu of cash interest payment

On April 30, 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 $127,047 cash interest payments the Company issued 977,286 common shares at deemed price of $0.13 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 130,825 common shares in the Quarter to Bruce Lisanti, the Company's former CEO, for payment of $12,500 in salary in lieu of cash through March 12, 2010. The share issuance is pursuant to an agreement to pay a portion of Mr. Lisanti's annual base salary in common shares of MicroPlanet in lieu of cash. All share grants are subject to a 4-month hold period in accordance with stock exchange requirements. Mr. Lisanti will continue to provide sales and advisory services to the Company.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities in the United States. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an application exemption from the registration requirements.

About MicroPlanet Technology Corp.

MicroPlanet Technology Corp. is a Smart Grid Technology Energy Conservation Company whose energy management products improves power quality and saves 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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For further information: MicroPlanet Company Contacts: Brett Ironside, President & CEO, Tel: [phone], Fax: [phone], [email protected]; Kurt Maass, CFO, Tel: [phone], Fax: [phone], [email protected]; MicroPlanet Investor Relations: Gerry Wimmer, INVESTORFILE.com, Tel: [phone], Toll Free: 1-888-894-8222, [email protected]