COMPLETION OF NEW EQUITY INVESTMENT OF £126.5 MILLION (US$206 MILLION) IN CLIPPER WINDPOWER PLC BY UNITED TECHNOLOGIES CORPORATION

January 12, 2010 - Clipper Windpower Plc ("Clipper" or the "Company") is pleased to announce that 84.3 million ordinary shares have been issued today to United Technologies Corporation ("UTC"), raising gross proceeds of £126.5 million (US$206 million assuming an exchange rate of £1.00: US$1.63) for the Company.  The newly issued shares have been admitted to trading today ("Admission").

Background

On 10 December 2009, Clipper announced the signing of an agreement for an equity investment into Clipper by UTC, a global provider of high technology products and services to the building systems and aerospace industries (the "Subscription Agreement").

Under the terms of the Subscription Agreement, UTC conditionally agreed to subscribe for 84,337,124 new ordinary shares in Clipper at a subscription price of £1.50 per share (the “Subscription”), representing a stake of approximately 39.3 per cent of the issued share capital of the Company (as enlarged by the Subscription).

The US$206 million of proceeds significantly strengthen Clipper's balance sheet, enabling the Company to enhance its operations and pursue its strategic initiatives.

Partial Cash Offer

It was also announced on 10 December 2009 that UTC had made an offer to shareholders of Clipper ("Shareholders") to acquire up to 21,804,559 ordinary shares (the "Target Number") in the Company for an offer price per share of £1.80 (the "Partial Cash Offer").  In support of the Partial Cash Offer, certain existing Shareholders granted UTC the option to buy such number of their shares to enable UTC to reach the Target Number in the event that fewer than the Target Number were tendered into the Partial Cash Offer, (the "Call Options"). 

As a result, upon completion of the Partial Cash Offer (and the exercise of the Call Options if required), UTC will own approximately 49.5 per cent of the issued share capital of Clipper (as enlarged by the Subscription).

Board Changes

Pursuant to the terms of the Subscription Agreement, and with effect from Admission, Kenneth Brown, Joseph G. Michels and Finn M. Hansen resigned from the Clipper board of directors (the "Board").

In addition, and also with effect from Admission, Ronald E. Bruehlman, Peter Christman, An-Ping Hsieh, Robert Leduc and Dr. J. Michael McQuade (all of whom have been nominated by UTC in accordance with the terms of the Subscription Agreement) have been appointed to the Board as non-executive directors.  Brief details of the new directors of the Board are as follows:

Ronald E. Bruehlman, aged 49, is currently UTC’s vice president for corporate strategy and development.  Bruehlman has been with UTC since 1988, during which time he has held various positions including Chief Financial Officer for the Carrier Corporation  and Vice President of Financial Planning & Analysis for UTC. He has been a director of the Connecticut Forum since 2005 and a director of the New England Air Museum since 2009.

Peter Christman, aged 52, has been President of Pratt & Whitney Power Systems, a UTC group company, since 2003. Prior to that, he held a number of positions with Energy Services, Inc. and Energy Maintenance Corp., including serving as President of ESI/EMC following its acquisition by Pratt & Whitney in 2001. 

An-Ping Hsieh, aged 49, has been with UTC since 1996. In 2008, Hsieh became Associate General Counsel responsible for UTC’s worldwide Merger & Acquisition and anti-trust activity. Previously, he served as General Counsel of UTC Fire & Security Corporation.  Hsieh is also involved with the Connecticut Asia Pacific American Bar Association, Greater Hartford Legal Aid and Lawyers Collaborative for Diversity.

Robert Leduc, aged 53, is President of Flight Systems and U.S. Government Programs for Hamilton Sundstrand, a UTC group company, a position he has held since 2004.  He has held numerous positions throughout UTC since joining the company in 1978, including positions at UTC’s Pratt & Whitney division as its Executive Vice President and Chief Operating Officer and President of Commercial Engines, Pratt & Whitney’s largest business segment.   

Dr. J. Michael McQuade, aged 54, is Senior Vice President for Science & Technology of United Technologies, a position he has held since joining UTC in 2006. Previously, Dr. McQuade held senior R&D and general management positions with technology development oversight at 3M and Eastman Kodak, including serving as Vice President of 3M’s Medical Division from 2001 to 2006 and President of Eastman Kodak’s Health Imaging Business.  His current responsibilities include overseeing UTC Power and UTC's Research Centre and providing strategic oversight and guidance for research and development activities throughout the corporation.

Each of Ronald E. Bruehlman, Peter Christman, An-Ping Hsieh, Robert Leduc and Dr. J. Michael McQuade hold positions as directors in other UTC group entities.  These directorships are set out in the Appendix to this announcement.

With these changes, the Clipper Board now consists of 11 directors, five of whom have been nominated by UTC.  James G.P. Dehlsen will continue as Chairman of the Board.

Commenting on the completion of the Subscription and changes to the Board, James G.P. Dehlsen said:

“This transaction is transformational for Clipper as it represents a strategic investment by one of the world’s leading industrial technology companies.   We welcome the investment from UTC and their confidence in Clipper’s technology and business opportunities.  Following this transaction, we believe there is a tremendous opportunity for Clipper to grow its market share and take its world-class technology to new markets, and we look forward to working together with UTC to achieve these goals.

The full Clipper Board extends its appreciation to Ken Brown, Joe Michels and Finn Hansen for their significant contributions to the Company over their years of Board service.  Their insights and perspectives have been valuable to Clipper's progress and will be missed.

The Board also welcomes Ron Bruehlman, Peter Christman, Ping Hsieh, Bob Leduc and Michael McQuade to the Board.  I have every confidence that with their assistance and that of my other colleagues, Clipper will continue to make substantial advances in wind power innovation and commercialization as we become a major player in the industry.”

About UTC

UTC is a global provider of high technology products and services to the building systems and
aerospace industries. Its principal operating units include Otis, Carrier, UTC Fire & Security, Pratt & Whitney, Hamilton Sundstrand and Sikorsky. Otis, Carrier and UTC Fire & Security serve customers in the commercial and residential property industries worldwide. Carrier also serves commercial, industrial, transport refrigeration and food service equipment customers. Pratt & Whitney, Hamilton Sundstrand and Sikorsky primarily serve commercial and government customers in both the original equipment and aftermarket parts and services markets of the aerospace industry. Hamilton Sundstrand and Pratt & Whitney also serve customers in certain industrial markets, including power generation. UTC employs approximately 210,000 people and operates in more than 180 countries. UTC is quoted on the New York Stock Exchange with a market capitalization of approximately $67 billion. For the year ended 31 December 2008, UTC revenues were $59.8 billion.

About Clipper

Clipper Windpower Plc, www.clipperwind.com, is a company engaged in wind energy technology, turbine manufacturing, and wind project development.  The Company designs advanced wind turbines, manufactures its 2.5 MW Liberty wind turbine, and actively develops wind power generating projects in the Americas. Clipper's primary offices are in the United Kingdom and in California, USA.  The Company's 330,000 square foot manufacturing and assembly facility, located in Cedar Rapids, Iowa, is ISO9001:2000 QMS Certified.   Clipper is a public company listed on AIM of the London Stock Exchange. Clipper's ticker symbol is CWP.

Ronald Bruehlman is a director of the following UTC group entities: Caricor Ltd.; Carlyle Air Conditioning Company, Inc.; Carrier International Corporation; Carrier Overseas Service, Limited; Carrier Service Company; Carrier Technologies ULC; Continental VAV, Inc.; International Comfort Products, LLC; United Electric Company; United Technologies Electronic Controls, Inc.; UT Insurance (Vermont) Inc.; and UTC Canada Corporation.

An-Ping Hsieh is a director of the following UTC group entities: Alliance Elevator Company; Beijing Leader Huaxin Electronics Co., Ltd.; Chubb Management Services Limited; Chubb Security Holdings Australia Limited; CTU of Delaware, Inc.; Dynamic Controls HS, Inc.; Hamilton Standard Controls, Inc; Leader Investment (HK) Development Limited; Lenel Systems International, Inc.; Lexar Corporation; NS Radar, Inc.; NS Service, Inc.; NSI, Inc.; United Technologies Building Systems Company; United Technologies Communications Company; United Technologies Communications Services, Inc.; United Technologies Cortran, Inc. United Technologies Domestic Operations, Inc.; United Technologies Holding Corporation; United Technologies IOS, Inc.; United Technologies Realty, Inc.; UTC Corporation; UTC Fire & Security Corporation; and Westminster Securities Limited.

Peter Christman is a director of the following UTC group entities: CalPeak Power LLC; Energy Services, Inc.; Pratt & Whitney Marine Systems, Inc.; Pratt & Whitney Power Services, Inc.; Pratt & Whitney Power Systems Overseas, Ltd.; Pratt & Whitney Power Systems, Inc.; Turboden, S.r.l.; United Technologies Energy Holdings International; United Technologies Energy Holdings, LLC; and Wood Group Pratt & Whitney Industrial Turbine Services, LLC.

Robert Leduc is a director of the following UTC group entities: Claverham 98 Limited; Claverham Group Limited; Claverham Holdings Limited; Claverham Limited; Eagle Services Asia Private Limited; Engine Alliance, LLC; FH Limited; Hamilton Sundstrand Management Services, Inc.; Hamilton Sundstrand UK Holdings Limited; IAD Rail Systems Limited; Kidde Technologies Inc.; Microtecnica Srl; P&W Alliance Holdings, Inc.; Ratier-Figeac, SAS; and Support Chain Management Limited.

J Michael McQuade is a director of the following UTC group entities: Architectural Energy Corporation; Dome-Tech, Incorporated; Renlschler Field Energy Management Company; United Technologies Worldwide Holdings, Inc.; UTC Power (UK) LTD; UTC Power Corporation; and UTC Power Finance Corporation.

For further information, please contact:

Investors:
Jenny Matthews
Investor Relations Director
+44 (0)20 7820 1078
jmatthews@clipperwind.com

JPMorgan Cazenove (Nominated Adviser and Corporate Broker to Clipper)
Patrick Magee
+44 (0)207 588 2828

Business and Trade Press:
Mary Gates
Global Communications Director
+1 (661) 301-0400
mgates@clipperwind.com

Financial Press:
Patrick d'Ancona / Charlotte Kirkham
M: Communications
+44 (0)20 7920 2347 / 2331

Back to Press Releases