AAER, Canada’s only original equipment manufacturer of wind turbines

AAER Inc. (TSX-V: AAE), ("AAER" or the "Corporation"), Canada’s only original equipment manufacturer of wind turbines of 1 megawatt ("MW") and more, released today its financial results for the three-month period ended June 30, 2009. The Company’s unaudited interim consolidated financial statements, Management Report and Annual Information Form are available on the Company’s Website at www.aaer.ca and on www.sedar.com.

Q2 2009 Highlights:

– Revenue in Q2 2009 totalled $1.5 million;

– Received a letter of intent from the Ministry of Economic Development, Innovation and Export trade for a 70% loan guarantee applicable to a line of credit, to a maximum of $50 million;

– Completed a share-for-debt offering totalling $1.5 million;

– Signed a conditional Turbine Supply Agreement (TSA) for the delivery and commissioning of 61 x 1.65 MW wind turbines to Mont Louis Wind L.P., represented by NPI Wind Power GP II Inc. and Northland Power Wind GP II Inc. ("Northland");

– Shipped two 1.5 MW wind turbines to Windland Inc. ("Windland") for their wind farm project in Tehachapi, California.;

– Raised gross proceeds of over $8.0 million through a public and a private offering of convertible unsecured subordinated debentures,
common shares and common share purchase warrants;

Subsequent to the end of Q2 2009:

– Signed an agreement for the delivery of a 1.65 MW wind turbine to Massachusetts Municipal Light Department Wind Energy Cooperative.

"We continue to make solid progress with our core business development initiatives. Our plant in Bromont is now fully operational with current annual production capacity of 200 wind turbines; our procurement channels and supply partners are well established; and our team is fully staffed, trained and well prepared to ramp up production," said Dave Gagnon, President and Chief Executive Officer of AAER. "AAER and Northland Power remain focused on advancing the Mont Louis Wind L.P. project, with ongoing work on site
permitting, manufacturing specifications and other technical requirements. We are also pleased to report continued expansion of our penetration into our target markets, as subsequent to quarter end, we signed an agreement for the delivery of a 1.65 MW wind turbine to Massachusetts Municipal Light Department Wind Energy Cooperative. Looking ahead, we remain committed to our strategy of establishing AAER as the leading supplier of wind turbines for projects of 50 MW or less. We believe we are uniquely positioned to exploit this valuable, under-serviced niche market and believe that as the North American economy begins its gradual recovery, our sales pipeline will continue to grow."

Financial Results

For the quarter ended June 30, 2009 (Q2 2009), sales totaled $1.5 million compared to nil for the corresponding period last year. The revenue relates to the delivery of turbine components to Hyundai Heavy Industries Co., Ltd. Net loss increased by $0.9 million in Q2 2009, to $4.3 million compared to $3.4 million in 2008. On a per share basis, net loss in Q2 2009 was $0.03 compared to $0.04 for the same period last year. Decrease in net loss is primarily driven by the increase in number of shares outstanding due to the
December 2008 and May 2009 public offerings.

AAER’s operating expenses for Q2 2009 totaled $3.4 million compared to nil for Q2 2008, reflecting the production costs associated with the wind turbine components delivered to Hyundai Heavy Industries Co., Ltd.; indirect costs of the Bromont facility; and indirect production salaries which were necessary to continue the implementation and the development of AAER’s operational strategy. Given that the Company continues to devote significant effort to its growth, changes in the level of these expenses do not necessarily indicate trends, demand, important events or uncertainties.

Corporate Reorganization

In the second quarter of 2009, AAER completed a corporate reorganization following the departure of Mr. Robert Guillemette, Chief Operating Officer ("COO"). The position of COO has been replaced with two newly created positions with distinct responsibilities in the Engineering and Production departments. In addition, Mr. Jean-Robert Pronovost, Chief Financial Officer ("CFO") left the Company to pursue other business opportunities. AAER has taken the necessary steps to fill the position in the near future. In the meantime, Mr. Jean-Pierre Fortier, currently Director of Financial Services and Controller, is acting as Interim CFO until the position is filled.

Capital & Liquidity

As at June 30, 2009, AAER had 169.2 million common shares issued and outstanding, and $0.7 million in cash and cash equivalents. As of December 31, 2008, the Company had 122.4 million shares issued and outstanding and cash and cash equivalents totaling $2.6 million. Compared to Q1 2009, cash and cash equivalents increased by $0.4 million, driven by: i) the completion of a private offering of 569 units (the "Units") for total gross proceeds of $0.6 million. Each Unit consists of one convertible unsecured subordinated debenture in the principal amount of $1,000 (each, a "Debenture"); ii) a public offering of 32,609,000 AAER units for total gross proceeds of $7.5 million, each such unit consisting of one common share in the share capital of AAER and one common share purchase warrant (the "C.S. Unit"); and iii) a share-for-debt offering valued at $1.5 million in which 6,556,533 AAER C.S. Units were issued to 15 suppliers and other business partners in payment of products and services received by AAER. The proceeds from these issues were mostly offset by the net loss for the period in an amount of $4.3 million; the investment in capital assets totaling $0.7 million; and non-cash working capital components and others in an amount of $2,5 million.

About AAER Inc.

AAER is a wind turbine manufacturer located in Bromont, Quebec that manufactures and maintains high capacity 1 MW or more wind turbines principally for the North American market. Its strategy is to progressively build its products’ components to provide a high level of reliability and competitive pricing to its customers. AAER uses a portfolio of proven European technologies to ensure the performance of its turbines in various wind conditions and terrains. Its stock is listed on the TSX Venture Exchange (TSX-V: AAE). Additional information is available on the Corporation’s website at