PRESS RELEASE

VYCON Introduces Patent Pending Hybrid VDC XEB Energy Storage System – New Power Backup System Combines Flywheel with Batteries for Extended Runtimes

LOS ANGELES – August 8, 2011 — VYCON (www.vyconenergy.com), a designer and manufacturer of environmentally friendly, high-speed energy storage flywheel systems, today announced the introduction of its new Hybrid VDC XEB flywheel system. VYCON's VDC XEB is the industry's first environmentally friendly energy storage system to combine flywheel technology with batteries in one patent pending integrated system. Now with the combination of batteries, users who need more backup time can utilize the reliability and green aspects of the flywheel system with minutes of extra runtime from the batteries. Power protection is vital to the digital economy as even momentary power disturbances can cost organizations substantially in lost transactions, production, labor and goodwill.

The VDC XEB is the first line of defense against power disturbances – saving the batteries for prolonged power outages. By absorbing the power glitches, the VDC XEB can significantly increase battery life by handling over 98 percent of the discharges that would normally have shortened the battery's useful life.

Providing up to 300 kilowatts (kW) of power, VYCON's Hybrid VDC XEB is the perfect solution for protecting power dependent applications such as data centers, healthcare facilities, industrial control systems and other mission-critical operations that may require several minutes of backup power. Upon a prolonged power outage, the VDC XEB will gracefully transfer to onsite generators. According to the Electric Power Research Institute (EPRI), 80 percent of all utility power disturbances last less than two seconds and 98 percent last less than 10 seconds. The VDC XEB's ability to offer extended runtime gives users further peace of mind for applications including those with automatic transfer switch (ATS) time delays and/or synchronization time requirements for multiple generators. Additionally, for users of the VDC XEB requiring higher power, up to four VDC XEB systems can be paralleled for longer autonomy and/or redundancy.

"The rapid worldwide adoption and integration of our award-winning VDC flywheel family by our customers and UPS partners have been significant," said Dann McKeraghan, sales and marketing vice president for VYCON. "For customers, the flywheel will continue to be the first line of support with the battery providing the added runtime when called upon. The Hybrid VDC XEB reduces the number of outages and cycles the battery has to support by 98 percent, thereby offering extended battery life. Now with the addition of VDC XEB, our customers can have the same highly reliable backup power from our clean energy storage VDC flywheel systems with additional runtime from the integrated battery. This is a win-win for our customers and UPS partners alike."

Compatible with all major brands of three-phase uninterruptible power systems (UPSs), the Hybrid VDC XEB connects to the DC bus of a UPS. Receiving charging current from the UPS, the VDC XEB provides clean DC power to the UPS during discharge. VYCON's 99.4 percent efficient system includes patented technology consisting of a flywheel hub formed from aerospace-grade steel, a high-speed permanent magnet motor generator, a contact-free magnetic levitation system, and a touch-screen display that provides vital information on system performance. Innovative patented technology enables the VYCON flywheel to charge and discharge at very high rates for countless cycles without degradation throughout its 20-year life. Moreover, unlike other flywheels on the market, VYCON flywheels do not require replacement of bearings – saving customers approximately $10,000 per flywheel every few years in maintenance costs.

VYCON's flywheel systems incorporate a host of advanced features that make the systems easy to use, maintain and monitor such as self-diagnostics (including the batteries), log files, adjustable voltage settings, RS-232/485 interface, alarm status contacts, soft-start pre-charge from the DC bus and push-button shutdown. Available options include DC disconnect, remote monitoring, Modbus and SNMP communications and real-time monitoring software.

VYCON's innovative VDC family of backup systems are environmentally friendly high-speed flywheels that provide clean ride-through backup power that is fast, predictable and seamless. Providing an attractive Total Cost of Ownership (TCO), data centers, hospitals, broadcast facilities, industrial processes, casinos and other mission-critical applications are depending on VYCON's flywheel systems to provide reliable and environmentally friendly energy storage.

VYCON has realized quick adoption of its clean energy solutions worldwide. Recently VYCON announced the opening of a new office in Singapore in order to accommodate growth in Asian markets. In addition, VYCON announced that cloud, managed services and colocation provider, EasyStreet® Online Services, Inc., has chosen to protect its state-of-the-art "green" data center with clean backup power from VYCON.

For more information on VYCON's new Hybrid XEB flywheel solutions that are available now and offer a three-year warranty, visit www.vyconenergy.com or call 714-386-3800. To see VYCON's flywheels in action visit VYCON's YouTube Channel at: www.youtube.com/user/VYCONEnergy.

About VYCON

VYCON is an innovator in the design and manufacturing of technologically advanced flywheel energy storage systems that enable a highly reliable, cost-effective and "green" energy storage solution for a variety of applications. The company's REGEN flywheel systems, used in regenerative power applications such as container cargo handling crane applications and light electric rail, reduce power and energy costs to port and rail operators as well as provide a reduction in greenhouse gasses.

Key to VYCON's flywheel superiority and dependability is its ability to discharge and recharge very quickly when called upon during power outages. VYCON's fleet of VDC, VDC-XE and REGEN systems have logged a record million-plus discharge and recharge cycles –in very demanding applications that oftentimes call on the VYCON systems to discharge and recharge every two minutes. For more information on VYCON's innovative green power solutions, contact VYCON at 714-386-3800 or visit VYCON's web site at: www.vyconenergy.com.

MEDIA INQUIRES:

PJ Jennings
Jennings and Associates Communications, Inc
pj@jandacommunications.com
(760) 431-7466

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