NEWS

Kudos to Government for Budget Changes

Wind Power Firm Applauds School Tax Cut

RICHMOND, BC February 23, 2007 - One of British Columbia's largest wind energy developers has congratulated the BC government for encouraging wind energy by reducing property taxes in Budget 2007.

Effective in the next taxation year an exemption from School Tax will apply to the towers that support wind turbines and to the foundations of those towers.

“The obligation to pay school tax on wind power assets was a serious impediment to the development of alternative energy in BC,” explained Anthony Duggleby, CEO of Richmond-based Katabatic Power Corp. “In Budget 2005 tax relief was provided to hydroelectric power projects by exempting certain assets from school tax. As a result of Budget 2007 wind power assets will be treated in the same way. More importantly, the government has sent a strong message that it is serious about promoting clean energy.”

“The cost to government of this change will be tiny compared to its overall tax revenues,” added Duggleby. “But for firms like Katabatic - who are trying to help BC meet its energy needs in an environmentally sensitive way - the tax savings are substantial. They will allow us to dedicate more of our funds to building the actual infrastructure needed to power BC in the future.”

“We were puzzled by criticisms by some that Budget 2007 didn't reduce business taxes. Or that it didn't support the government's Throne Speech promise to reduce greenhouse gas emissions. In our view this change contributed significantly to both of those goals.”

About Katabatic Power Corp.

Katabatic Power Corp. is a privately-owned wind power development company based in Richmond, BC and San Francisco, CA. The Company is building a $55 million wind energy facility at Mount Hays near Prince Rupert. Once completed, the facility will produce 25.5 megawatts of electricity or enough to power 12,000 homes. In January Katabatic signed a joint venture agreement with Deutsche Bank AG to develop another wind farm - the world's largest - at Banks Island off BC's coast. This is the first major investment by Deutsche Bank in North America's renewable energy market.

For further information:

Katabatic Power Corp., Jonathan Raymond, Telephone: (415) 931-6269, www.katabaticpower.com