8 August, 2002 – Schmitt Industries, Inc and Vanteck (VRB) Technology Corp., through its United States subsidiary VRB Power (US) Inc. have signed a joint venture agreement to market Vanteck’s power storage system in US, Canada and Mexico.

Under the agreement the companies will collaboratively integrate, manufacture, and market stationary applications of the VRBPower System for the residential and light commercial markets using modules of 1 to 5kW. The goal of the joint venture will be to have a marketable product developed for sale by July, 2003.

Schmitt and Vanteck US will each hold a 50 per cent beneficial interest in the joint venture. The joint venture will have the right to make, use, design and sell products in the NAFTA participating jurisdictions using Vanteck’s VRBPower System patented technologies. Schmitt will contribute to the joint venture its existing and future controller technology, manufacturing know-how, the utilization of electrical and manufacturing facilities in Portland, ISO 9001 certification, staff and capital as required during the term of the joint venture.

“We look forward to working with Schmitt Industries, a leader in sophisticated electronic and precision equipment manufacturing, to bring the VRBPower System to residential customers”, said Donald Nicholson, President & CEO of Vanteck. “Small energy storage devices, used for residential applications, have the potential to reduce peak power demands for areas of the United States suffering from an energy shortfall”.

Wayne Case, President and CEO of Schmitt said, “The VRBPower System technology coupled with Schmitt developed microprocessor control units will provide the residential and light industrial markets with a true “plug in” solution to serious energy and power line deficiencies. Schmitt is pleased to be involved with Vanteck in the forefront of this exciting new energy storage market.”

Based in Vancouver, B.C., Vanteck is an alternative electrochemical energy storage company that has commercialized the patented Vanadium Redox Battery (VRB) Energy Storage System. The VRB is a technology that effectively stores and delivers electricity on demand, improves power reliability, power quality and reduces costs associated with applications for load levelling, peak shaving, and the supply of essential Uninterruptible Power Systems. Characterized by low ecological impact, the VRB technology