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FOR MORE
INFORMATION CONTACT:
Bob Murray
VP Communications
office818.704.0733
Mobile 213.200.7606
bmurray@magnetek.com
FOR
IMMEDIATE RELEASE
Magnetek Receives First Production
Order for Large Wind Power Inverters
Menomonee Falls,
WI -December 20, 2006 -Magnetek,
Inc. (NYSE: MAG) today announced that it
has received an initial production order
for calendar 2007 delivery of 60 wind power
inverters valued at more than $7 million.
Magnetek's digital wind power inverters
transform the DC voltage produced by rectifying
variable-frequency alternating current (AC)
from wind turbine generators into the steady
flow of 60-cycle AC needed to feed the utility
power transmission grid.
In 2003, Magnetek entered into an agreement
with a leading wind power company to develop
power inverters for large, multi-megawatt
wind turbines. The first 60 wind inverters
to be delivered by Magnetek beginning in
mid-2007 are a result of that agreement.
Under a separate supply agreement reached
in October of this year, Magnetek will provide
inverters for an initial period of one-year
with customer options to extend the agreement
in subsequent years. If exercised, the options
could produce incremental revenues of more
than $60 million for Magnetek through 2011.
Over the past decade, wind energy has become
the world's fastest growing energy source,
expanding globally at an average rate of
28% over the past five years alone. Currently,
just under 60,000 megawatts of wind energy
are installed globally with the majority,
approximately 40,000 megawatts, installed
in Europe and about 9,000 megawatts in the
U.S. In Europe, government targets focused
to decrease the use of carbon fuels and
increase energy sustainability have encouraged
the growth of wind energy. Today, in Denmark
and some areas of Germany wind energy already
contributes between 25-30% to these nations'
generation mix.
In the U.S. wind currently provides less
than 0.5%; however, considering America's
abundant and energetic winds, wind energy
could provide a significant contribution
toward the nation's energy security and
clean power generation efforts. According
to the U.S. Department of Energy, the world's
winds could theoretically supply the equivalent
of 5,800 quadrillion BTUs (quads) of energy
each year -- more than 15 times current
world energy demand. (A quad is equal to
about 172 million barrels of oil or 45 million
tons of coal.)
Magnetek manufactures digital power and
motion control systems used in material-handling,
people-moving, communications and energy
delivery, and is the world's leading builder
of grid-tied power inverters for large commercial
fuel cells with more than 160 installations
and half a billion operating hours in the
field over the past decade. On September
29, 2006, the Company reported revenues
of $83.1 million for its 2006 fiscal year,
ended on July 2, 2006(a).
(a) Magnetek's fiscal quarters end on the
Sundays nearest September 30, December 31,
March 31 and June 30.
- 30 -
This news release contains
forward-looking statements within the meaning
of the Private Securities Litigation Reform
Act of 1995, including statements regarding
the Company's anticipated financial results
for its first quarter and fiscal year ending
July 2, 2006. These forward-looking statements
are based on the Company's expectations
and are subject to risks and uncertainties
that cannot be predicted or quantified and
are beyond the Company's control. These
risks and uncertainties include effects
of economic, market and operating conditions
on the Company and its financial results.
Other factors that could cause actual results
to differ materially from expectations are
described in the Company's reports filed
with the Securities and Exchange Commission
pursuant to the Securities Exchange Act
of 1934.
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