VANCOUVER, July 25 /PRNewswire-FirstCall/ - VRB Power Systems Inc. (TSX-V:VRB) announces that the University of South Florida, in partnership with Progress Energy Florida, has purchased two 5kW x 4hr VRB Energy Storage Systems(TM), which it will integrate with a solar project on the St. Petersburg campus of the University of South Florida. This project is aimed at evaluating the storage of intermittent solar photovoltaic energy and utilizing that energy at a time of maximum benefit to the customer and utility power systems. The two sites will enable the evaluation of the potential of these advanced energy storage systems for a number of power system applications.

John Davis, director of VRB, says, "VRB Power has developed as its standard small system offering, a 5kW 4 hour unit focused on the telecommunications sector. It is very exciting to see that this same platform can also form the basis for PV market applications, such as with Progress Energy. This demonstrates the flexibility and potential of the VRB flow battery and dramatically increases our market potential."

"The continued development of renewable energy is part of our balanced approach to meeting growing customer demand, and it will play a vital role in our energy future," said Jeff Corbett, Progress Energy Florida's senior vice president of Energy Delivery. "This system will allow storage of renewable energy for later use, when it is needed the most, such as very hot or very cold days. This partnership with USF will help enhance utilities' use of renewable energy, and it will also serve as an educational platform for USF students."

The Power Center for Utility Explorations (PCUE) at the University of South Florida is the group performing the design, installation, modeling and simulation. PCUE Director Alex Domijan and Assistant Director Arif Islam will seek to transform this pilot effort into a practical application for other utilities to emulate for the benefit of their customers. The use of renewable energy sources will advance the state-of-art reduction of the carbon footprint and mitigate climate change with widespread use of an installed system.

About Progress Energy

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 23,000 megawatts of generation capacity and $10 billion in annual revenues. The company's holdings include two electric utilities serving approximately 3 million customers in North Carolina, South Carolina and Florida. Progress Energy's non-regulated operations include energy marketing. Progress Energy is the 2006 recipient of the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence. In 2005, the company also received the prestigious J.D. Power and Associates Founder's Award for dedication, commitment and sustained improvement in customer service. For more information about Progress Energy, visit the company's Web site at progress-energy.com.

About University of South Florida

The University of South Florida (USF) is a major Research 1 university located in the Tampa Bay area of Florida. USF has about 45,000 students, several regional campuses and an annual operating budget of over $1 billion. Last year, USF was tied for the highest research growth rate in the USA. USF has 11 colleges and offers more than 7000 courses. For more information about Power Center for Utility Explorations (PCUE) & University of South Florida (USF), visit the web site at http://pcue.eng.usf.edu/Webpages/index.htm and http://www.usf.edu/ respectively.

About VRB Power

Headquartered in Vancouver, Canada, VRB Power Systems Inc. is an energy storage technology developer which is marketing, selling and manufacturing products utilizing the patented VRB Energy Storage System ("VRB-ESS(TM)"). The VRB-ESS can economically store and supply large amounts of electricity on demand and is focused on stationary applications. It is a long life, cost effective, low maintenance, efficient technology that allows for the scalability of power and storage capacity independently. The VRB-ESS is particularly beneficial to renewable energy providers, utilities and end users through its ability to "inventory" electricity, allowing for the optimal match of supply and demand.

The VRB-ESS is well suited for a variety of applications. Enabling the provision of "firm" capacity from intermittent renewable generation such as wind and solar; more cost effective and efficient generation of electricity in remote areas; capital deferral for utilities; and load levelling (peak shaving) applications. The VRB-ESS is also capable of providing backup power solutions including applications for utility sub-stations and telecommunication sites. The VRB-ESS is characterized by having the lowest ecological impact of all energy storage technologies and is unlike most other conventional energy storage systems that rely on substances such as lead or cadmium.

Caution regarding forward-looking statements: VRB Power's press releases may contain forward-looking statements. These statements are based on management's current expectations and beliefs which are subject to a number of known and unknown risks and uncertainties (including, but not limited to, the risk factors described in VRB Power's Annual Information Form filed with the British Columbia Securities Commission and available at www.sedar.com) that could cause actual results to differ materially from those expressed or implied in our forward-looking statements. The Company does not assume any obligation to update any forward-looking statements contained in this press release.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    Simon Clarke
    Executive Vice President, Corporate Development

Source: VRB Power Systems Inc.