NEWS

AAER Announces CDN$35 Million Wind Turbine Sale - Richmond-Based Katabatic Power to Use Turbines at BC Wind Farm

MONTREAL, QC, Nov. 22, 2006 /CNW Telbec/ - AAER Inc. (TSX-V: AAE), a Montreal-based wind turbine manufacturer, announced today that it has entered into an agreement for the sale of 17 of its 1.5 megawatt (MW) wind turbines to Richmond, BC-based Katabatic Power Corp., a privately-held wind farm developer with contracts to sell renewable energy in British Columbia

Under the terms of the deal, AAER will deliver 17 of its model A1500-77 wind turbines during the last quarter of 2007 for use at Katabatic's Mount Hays wind project near Prince Rupert, BC. Katabatic also retains the option to purchase an additional 17 turbines from AAER in 2008. AAER will maintain and service the turbines for the first six years. The sale is to be reflected in definitive agreements to be entered into shortly.

This sale represents total revenues ranging between CDN$35 and $80 millions for AAER, when considering all options and related maintenance contracts.

"Katabatic's purchase of AAER's licensed wind turbine technology is an important milestone for our company," said Dave Gagnon, President of AAER Inc. "We look forward to a long and productive relationship with Katabatic."

"AAER's turbine technology is proven in the field, and is ideally designed for the outstanding wind resource along the BC coast," said Jonathan Raymond, COO of Katabatic Power Corp. "Over the next decade, Katabatic's core business will focus on developing British Columbia's significant wind resources, and partnering with a strong turbine manufacturer like AAER is a critical component of our growth strategy."

In September 2006, Katabatic signed a 25-year electricity purchase agreement with BC Hydro, the Province's primary electricity provider, for the output of the 25.5 MW Mount Hays wind farm. The project will be the first commercial wind farm in the Province, providing electricity to BC Hydro customers in late 2007.

Katabatic is also in initial stages of development of a 3,000MW wind farm on Banks Island, BC. That project, which would break ground in 2009, would be one of the world's largest wind energy facilities.

About AAER Inc. (TSX-V: AAE)

AAER integrates, manufactures, distributes and maintain high capacity wind turbines from 1 to 1.5 MW. AAER Inc., thru is subsidiary AAER SYSTEMS Inc. has the rights to manufacture and distribute in North America wind technologies developed by Fuhrlander-Pfleiderer GmbH & Co, a pioneer company among the world leaders in wind energy.

About Katabatic Power Corp.

Katabatic Power Corp. is a Richmond, BC-based wind farm development company. Its mission is to produce clean, renewable energy to meet growing consumer demand in North America for affordable, non-polluting energy sources.

Forward-Looking Statements

KaThis news release contains certain forward-looking statements. These statements relate to future events or AAER's economic performance and reflect the current assumptions and expectations of management. Certain unknown factors may affect the events, economic performance and results of operations described herein. AAER undertakes no obligation and does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.

For further information:

Dave Gagnon, President, AAER Inc., (514) 448-5155
www.aaer.ca

Gavin Berg, Vice President, Operations, Katabatic Power Corp., (415) 931-6236
gberg@katabaticpower.com