BLUEPOINT ENERGY TO ENTER DEMAND RESPONSE POWER MARKET
GenView™ Controls to Unlock Value of Stranded Standby Power Generating Assets
BluePoint's Technology to Help Customers Establish New Revenue Stream
El DORADO HILLS, CA, July 23, 2007 -- Chapeau, Inc. d/b/a BluePoint Energy (OTC BB: CPEU) today announced that it is launching a Demand Response business line that will establish a network of backup generation assets managed by its proprietary GenView™ control technology. By creating a "virtual power plant" through this Internet-based GenView™ control technology, BluePoint Energy will enable energy consumers and utilities to avoid service interruption due to excess demand, provide owners of backup generators with a new source of revenues, and establish itself as a leader in the demand response market.
Guy A. Archbold, Chief Executive Officer of BluePoint Energy Inc., said, "This is a hyper-growth industry, where we believe our existing and future customers, strategic alliance partners, owners of our Combined Heat & Power (CHP) EnviroGen™ Energy Modules and owners of standby generation assets shall provide us an unrivalled ability to aggregate groups of generation resources by region, both domestically and internationally. Currently, standby generating equipment is under-utilized, and in many instances, not utilized at all despite ever-increasing demand for electrical power. Our GenView™ control technology will allow owners of standby generators to establish a new revenue stream by utilizing those assets at times of peak demand.
"When an independent system operator (ISO) or utility needs more power, it will be able to call on our Central Command Center to provide it. Our Central Command Center will select generating units based on size, availability and run hours, employing the standby generators to create the power needed to meet the demand. Our Central Command Center will monitor the entire process to ensure that the ISO is properly billed for the power supplied.
"GenView™ is a proprietary, Internet-based microprocessor control system designed to integrate generating assets with building management control systems. Combined with a powerful overlay database, GenView™ allows a user to aggregate multiple sites into discreet generating groups. GenView™ currently operates with BluePoint's combined heat and power and combined cooling, heat and power EnviroGen™ Energy Modules. BluePoint's application specialists can configure GenView™ to operate in conjunction with highly specialized building management control systems to create synergies between the building mechanical systems and generation assets. While this feature alone compares very favorably with competitors, GenView™ also has the ability through infinitely expandable IO modules to directly control an entire facility.
"Our GenView™ control system uniquely differentiates itself in the market place as being a power generation controller first. This capability enables a facility to participate in demand response programs without compromising the generator's primary function as a standby power system or jeopardizing the manufacturer's warranty. The GenView™ controller can parallel power generation assets to the grid with all of the required electrical protections while operating the systems at a reduced load to comply with engine generator manufacturer specifications. In the event of an outage, the controller will seamlessly revert back to normal standby operation."
Archbold continued, "This is an opportunity in which every component of the value chain wins. The power consumer gets electricity even at periods of heightened demand. The ISO or utility avoids brown-outs or black-outs and can maintain power even if primary generating capacity goes offline. The generator owner receives a check he wouldn't otherwise receive without our GenView™ control technology. The generator manufacturer should see more sales and income from upgrades as well as more maintenance revenue. BluePoint gains an entirely new, exceptionally robust business line from sales and operation of its state-of-the-art GenView™ control system."
Archbold concluded, "As we finalize this dynamic business line with our existing and future customers, strategic alliance partners and owners of our CHP EnviroGen™ Energy Modules, we expect to see initial revenue generation in early calendar 2008 with significant upward targets comparable to or exceeding current industry participants. Concurrently, during fiscal 2008 ending June 30, 2008, BluePoint anticipates having signed long-term discount energy service agreement contracts (turnkey power projects) with customers representing revenue to BluePoint of $129 million."
It is generally assumed in BluePoint's business model that project contract revenue shall convert to revenue recognition by the Company within six to nine months after a project contract is signed. BluePoint expects gross margins targets to exceed 40% on the stated contract revenues, with EBITDA to be in the range of 18-22%.
About Chapeau, Inc. d/b/a BluePoint Energy
Chapeau, Inc. d/b/a BluePoint Energy designs, assembles and sells packaged combined heat and power (CHP) and combined cooling, heat and power (CCHP) modules with ultra-clean emissions employing proprietary technology under the trademark EnviroGen™. Chapeau utilizes its proprietary build, own, operate, and maintain discount energy service agreement financial model to provide reliable, efficient, clean and cost-effective energy solutions to the end user. For more information, call 916-939-8700 or visit the Company's website at www.bluepointenergy.com.
The foregoing is news relating to Chapeau, Inc. d/b/a BluePoint Energy (the "Company") and contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to the Company or its management, including without limitation, Chapeau, Inc. d/b/a BluePoint Energy (as defined herein) and/or the Company's other subsidiaries, are intended to identify such forward-looking statements. The Company's actual results, performance or achievements could differ materially from the results expressed in, or implied by these forward-looking statements. For a discussion of additional factors that may affect actual results, investors or interested parties should refer to the Company's filings with the Securities and Exchange Commission; in particular, its annual report on Form 10-K, most current 10Q and other filings as may be relevant. This does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes.
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