EGT Eguana Technologies Inc

Eguana Technologies Announces $2.0 Million Private Placement to Expand Engineering and Operational Capacity to Execute on Growing Sales Pipeline

CALGARY, ALBERTA--(Marketwired - May 5, 2014) - Eguana Technologies Inc (TSX-VENTURE:EGT), ("Eguana" or the Company") a leading manufacturer of high performance power electronics solutions for "smart-grid" and "micro-grid" energy storage systems announced today that it intends to raise $2.0 million by way of a private placement of 5 million Units at $0.40 per Unit. Each Unit will be comprised of one common share and 1/2 common share purchase warrant exercisable at a price of $0.60 per share for a period of 18 months subject to early termination when the 10 day VWAP closing price exceeds $0.80 per share.

The net proceeds of the issue will be used to expand Eguana's engineering and operational capacity needed (i) to execute on the announced agreement with Sonnenbatterie Gmbh (See News Release dated April 22, 2014); (ii) to accommodate anticipated demand for integrated power electronics solutions from battery manufacturers in Japan and the US, as well as developers of micro-grid power systems in the Middle East and North Africa; and (iii) to continue to execute on our strategy to make Eguana the technology leader for emerging battery technologies; and to increase working capital reserves.

Michael Carten, CEO of Eguana commented:

"The agreement with Sonnenbatterie is a clear tipping point for Eguana. It changes our model from delivering only a power electronics assembly to delivering an integrated value added electronics solution. While this will materially increase revenues, with no change in volume forecasts, it will absorb a significant portion of our current engineering capacity for the balance of the year. Investments will also be required in both R&D and production testing equipment to deliver the more complex, fully integrated product as Eguana will be assuming responsibility for Sonnenbatterie's new product development."

"In addition we have visibility on a significant potential revenue pipeline with qualified customers, where we are in various stages of the process to secure long term purchase contracts in Japan, the US, and the Middle East. Bringing these deals to closure requires an investment in engineering and operations time (i) to integrate control software, (ii) to develop prototypes, and (iii) to set up production lines with a contract manufacturer in the region."

"We have been successfully executing on our strategy to make Eguana the technology leader with emerging battery technologies and to embed our technology in their product development process. This is an important part of the future of Eguana; and our efforts are beginning to bear fruit with multiple companies committed to product trials. It, too, requires an investment of engineering resources to assist in the integration process and build long term relationships."

"The capital needed to achieve our higher revenue target is relatively modest because we have structured our agreements to avoid any investment in working capital to ramp production and have outsourced high volume manufacturing to contract manufactures. We currently have the capacity to produce approximately one thousand units per month in Germany and can increase this capacity in increments of one thousand per month with an additional investment of approximately $90,000 for each increment."

The Common Shares and Warrants will be subject to a 4 month hold from the date of Closing, which is expected to occur May 23, 2014, subject to approval of the TSX Venture Exchange.

The selling concession on the issue is 7% of gross proceeds, plus broker warrants equal to 7% of the Common Shares and Warrants issuable under the private placement, such broker warrants exercisable on the same terms as the Warrants.

About EGUANA TECHNOL0GIES, INC:

Headquartered in Calgary, Alberta, Canada, Eguana Technologies Inc. designs and manufactures intelligent high performance low-voltage power electronics platforms for distributed smart grid and energy storage applications. Eguana's software configurable platform enables energy storage systems to optimize the lower cost, modularity and safety advantages of low voltage advanced battery technologies at a much lower cost, and with greater design flexibility than is possible with conventional power electronics solutions.

To learn more, visit www.EguanaTech.com or follow us on Twitter, https://twitter.com/EguanaTech.

Forward-Looking Information

The reader is advised that some of the information herein may constitute forward-looking statements within the meaning assigned by National Instruments 51-102 and other relevant securities legislation. In particular, we include: statements concerning the potential for increased revenue on product sales to Sonnenbatterie resulting from the announced adjustment to deliver an integrate enclosure; statements concerning the revenue potential of our pipeline in Asia, the Middle East and the US; statements concerning product trials with battery technology developers and; statements concerning our production capacity and the capital required to increase such capacity

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties. Many factors could cause the Company's actual results, performance or achievements, or future events or developments, to differ materially from those expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, which speaks only as of the date hereof. Readers are also directed to the Risk Factors section of the Company's most recent audited Financial Statements which may be found on its website or at sedar.com The Company does not undertake any obligation to release publicly any revisions to forward-looking information contained herein to reflect events or circumstances that occur after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Eguana Technologies Inc.Michael CartenCEO+1.403.508.7177 ext 111 (o) or +1.403.630.9544 (m)michael.carten@EguanaTech.comwww.EguanaTech.com