[LOGO]
COMPOSITE
TECHNOLOGY
CORPORATION
Innovative Solutions for the Power Industry
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FOR IMMEDIATE RELEASE Contact: Xxxxx Xxxxxxxx
000-000-0000
COMPOSITE TECHNOLOGY AMENDS FINANCING AGREEMENT
IRVINE, CA, October 4, 2005 - Composite Technology Corporation (CTC or Company)
(OTC Bulletin Board: CPTCQ) announced today that it has entered into an
amendment on October 3, 2005 to a previously announced (September 26, 2005)
agreement to sell $6 million principal amount of senior convertible notes,
whereby the parties have extended the closing deadline to October 13, 2005,
removed the restriction on the use of proceeds, and have agreed to set the price
of the conversion by 4pm (PDT) on October 7, 2005.
The placement of the Notes and Warrants is subject to a hearing scheduled before
Judge Xxxx X. Xxxx, U.S. Bankruptcy Court, at 10:00 am (PDT) October 11, 2005
where the Company is seeking approval of this financing. The net proceeds of the
offering will be used to pay allowed pre-petition claims and administrative fees
and expenses upon confirmation and consummation of the Company's plan of
reorganization in addition to providing capital for general operating purposes.
A hearing to consider confirmation of the Company's plan of reorganization is
currently scheduled for October 12, 2005.
This announcement is neither an offer to sell nor a solicitation to buy any of
these securities.
The securities will not be registered under the Securities Act of 1933, as
amended (the "Securities Act"), or any state securities laws, and unless so
registered, may not be offered or sold in the United States except pursuant to
an exemption from the registration requirements of the Securities Act and
applicable state laws. The shares issued upon conversion of the Notes and
exercise of the Warrants may be exempt from registration under the Securities
Act pursuant to Section 1145 of the Bankruptcy Code, subject to the Bankruptcy
Court's approval in connection with the confirmation of the Company's plan of
reorganization.
0000 XxXxx Xxxxxx, Xxxxxx, Xxxxxxxxxx 00000 Tel: 000.000.0000
Fax: 000.000.0000 xxx.xxxxxxxxxxxxxxxxx.xxx
