Utility Automation & Engineering T&D - Michigan apartment to install 'rooftop' wind turbine

BRIGHTON, MI, Dec. 9, 2003 -- McKenzie Bay International Ltd. has signed an agreement with management of a Southeastern Michigan, U.S. Housing and Urban Development (HUD) supported, apartment building regarding the installation of the first WindStor^SM system with a rooftop mounted DERMOND Wind Turbine DWT^SM.

This urban WindStor system would provide onsite electricity generation and storage to reduce existing electricity costs, minimize future rate increases for grid supplied electricity and provide an uninterruptible, standby power system, for the entire building, in the event of a grid failure. Prior to beginning the installation, targeted for a mid-2004 commissioning, McKenzie Bay will collect wind power data to confirm the project's viability while working with city officials for permitting.

WindStor system components would include a 100 kW DWT, a DERMOND System Integrator and a 500 kW battery. The DWT and System Integrator are DERMOND INC components (McKenzie Bay subsidiary) and vanadium-based battery will be outsourced. McKenzie Bay Leasing Company (McKenzie Bay subsidiary) is expected to finance the project.

"Our investments in technology, and vertical integration, have allowed McKenzie Bay to develop a cost-effective renewable energy system to address the cost of electricity for retail energy markets (building rooftops and urban sites) and remote communities that rely on diesel generated power," said Gary Westerholm, chairman and president of McKenzie Bay. "Our strategy of leasing WindStor systems offers our customers an environmentally friendly means to aggressively manage electricity costs without capital appropriation on their part."

WindStor is a 'turnkey' "Green Energy" electricity management system. Designed to work with existing sources of electricity (the "Grid", diesel, etc.), WindStor adds self-generated renewable energy and electricity storage to the primary electricity source and selects the lowest cost electricity input for the system via a proprietary "System Integrator". Targeting high retail energy costs, WindStor's "urban" configuration was designed for commercial buildings, multistory residential dwellings, light industrial users and other businesses.

McKenzie Bay International Ltd. (www.mckenziebay.com), a Michigan based development stage company, is preparing to commercialize alternative energy solutions based on emerging Vanadium electricity storage devices and wind power generation systems.

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