Industrial Strategy Update

Gas Turbine Efficiency PLC 16 July 2007 16 July 2007 GTE Industrial Strategy Update GTE Diversification Efforts Pay Off -- Industrial Revenues expected to be Up 600% Gas Turbine Efficiency plc ('GTE' or 'the Group'), a leading designer and manufacturer of advanced cleaning, performance monitoring and fluid and control systems for gas turbines, is pleased to announce a significant increase in Industrial based revenues and backlog for 2007. After successfully establishing the business in the aviation segment with our exclusive partner, Pratt & Whitney, GTE is now seeing similar success in the industrial segment. This is evident in the tremendous growth seen in the first half of 2007. Industrial revenues are expected to increase over 600% to $5.7m (H1 2006: $0.8m). As a result, the Group expects its total revenue in the first half 2007 to over 300% to $9.3m compared with the corresponding period last year (H1 2006: $2.1m). On 30 June 2007, the backlog for the full year 2007 was $13.9m, approximately, 450% ahead of corresponding period last year (H1 2006: $2.5m). GTE has achieved this success by following a bold strategy to extend the business model with four OEM qualifications in parallel. The Group has also expanded its solutions portfolio with the acquisition of Control Center, LLC and ARES Technology, LLC this year. The combined strategy of acquisitions alongside organic Research & Development has significantly expanded GTE's core product lines as seen below: 2006 2007 Compressor Cleaning Systems Compressor Cleaning Systems Compressor Power Augmentation Fuel Systems And Metering Control Systems and Panels Combustion Monitoring Systems Aftermarket Parts / Supply Chain On-Site Installation Services Outage Repairs GTE's enhanced capabilities will help the Group develop in three key ways. Firstly, it moves GTE up the 'value chain' and closer to integrated solutions, positioning the Group for long term growth in the Gas Turbine aftermarket segment which is valued at up to $10 billion. Secondly, it opens up additional high value products to sell through existing channels and customer relationships and finally, it creates a broader technology team and patent portfolio. Discussions with several major OEMs to sign long term commercial contracts have progressed well and in some cases have been expanded to include several new product lines. The five year agreement with Solar, a Caterpillar company along with the three year extension of our exclusive agreement with Siemens, AB and the recent contract extension with Rolls Royce are a validation of our long term strategy. The Industrial segment includes Power Generation as well as Oil & Gas industries which tend to have large, global OEMs and end users which highlight the importance of GTE's solutions being executed globally. To better align with these customers, GTE successfully expanded its global footprint. During 2006, we opened up an office in St. Petersburg, Russia and added a strong presence in Abu Dhabi through our agent relationship with NAMA. Future expansion is also expected in established legal entities in Singapore, Norway, and the Middle East. Looking forward, GTE plans to continue this successful strategy. The Group will look to bolster its technology breadth and development through organic R&D and opportunistic acquisitions. The Group will continue to focus on high value solutions in the Gas Turbine aftermarket segment and move to higher value integrated product and service solutions. The demanding qualification negotiations with key industrial global OEMs are progressing well and we will update the market later in the year. Steven Zwolinski, Chief Executive Officer of GTE, commented: 'The benefits of GTE's long term strategy for the industrial segment of the business has resulted in tremendous progress in the first half of 2007 positioning the business for long term growth. The integration of Control Center, LLC 2007 and Ares Technology, LLC has exceeded expectations, significantly enhancing the Group's capabilities.' Enquiries: Gas Turbine Efficiency plc Steven Zwolinski, CEO +46 8 546 10 528 Libertas Capital Aamir Quraishi, Charles Goodfellow +44 20 7569 9650 Corfin Communications Neil Thapar, Harry Chathli +44 20 7929 8989 About GTE Gas Turbine Efficiency plc, whose shares are traded on London Stock Exchange's AIM market (Ticker: GTE), designs, manufactures and markets advanced integrated solutions for environmental, process and asset optimisation of gas turbines primarily in the aerospace, industrial and oil & gas sectors. These solutions include cleaning systems, performance monitoring, fluid and control sub-systems that improve turbine performance and availability, fuel efficiency and parts life, resulting in increased profits for our clients and a cleaner environment. The Group sells its products to blue chip customers worldwide from operational centres in Europe and the USA. This information is provided by RNS The company news service from the London Stock Exchange
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