Solpower Mexico & South Territories Sold for $2.4 Million

31 August 1998

Solpower Mexico & South Territories Sold for $2.4 Million

    SCOTTSDALE, Ariz.--Aug. 31, 1998--Solpower Corp. (OTC BB:SLPW) Monday announced the sale of the Solpower Mexico territory license for $1,800,000.
    The license is for the manufacture, distribution, marketing and sale of Soltron(TM) in Mexico. The term of the license is for a period of five years with an option to renew for an additional five years.
    As part of a restructuring of the Solpower Mexico territory license, the licensee is presently negotiating with Productos Quimicos Mardupol, S.A., who formerly agreed to acquire the Mexico license, to act as the Exclusive Distributor and Sub-Licensee of Soltron(TM) in Mexico.
    The purchaser of the Solpower Mexico territory has further agreed to purchase the Solpower South territory, comprising of the states of Texas, Oklahoma and New Mexico for $600,000.
    Initial orders for Soltron(TM) from the Solpower Mexico and Solpower South territories will be supplied from the company's production facility in Phoenix while the licensee establishes its own manufacturing and distribution facility in Texas. The company has obtained all necessary permits from the City of Phoenix and construction at the plant is in full progress with completion scheduled for September.
    The company's Form 10SB has been filed with the Securities & Exchange Commission and application has been made for a listing on the Nasdaq SmallCap Market.
    This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove correct.

    For further information please contact Dominion Capital Securities Inc. at 877/432-7462 or Solpower Corp. at 888/289-8866.