AC Technology Corporation is pleased to announce it has formed a strategic partnership with MEP Drives Limited in Mississauga, Ontario and MEP inc in Anjou, Quebec. MEP will function as a stocking representative on behalf of AC Tech maintaining warehouses in both Ontario and Quebec.

Over the years, AC Tech has been fortunate to form partnerships with strong Canadian firms that have established our company as a market leader in Canada. Our partnership with MEP continues this tradition with the added benefit of making it easier to conduct business with AC Tech.

Today our distributor partners are forced to make heavy investments in inventory to deal with the inevitable border delays associated with importing U.S. based inventory. Once this transition is complete, our distributors will be able to utilize AC Tech's Canadian based inventory to fulfill customer needs and reduce investment in stock. Lead-times will be significantly shortened because inventory will be on hand in both warehouses waiting to fulfill new orders. In emergency situations, distributors in the major business centers of Ontario and Quebec will be capable of arranging for same day customer pickups. Customers located outside of Ontario and Quebec will also have access to this inventory.

As an added convenience AC Tech will invoice each transaction in Canadian currency. Canadian list price books will be printed so our customers can purchase products from AC Tech without the hassle of constantly monitoring currency fluctuations.

One of the more attractive benefits of this new partnership are the resources for training, joint sales calls, and technical support that MEP already has in place. MEP has represented Lenze for several years and is intimately familiar with the features and benefits of AC Tech products. Both locations bring many years of experience in selling variable frequency drives as well as extensive knowledge of the Canadian marketplace. With the addition of MEP in Quebec and Ontario we have now established a manufacturers representative organization that extends across Canada.

We plan to implement our stocking representative programs in Quebec (this location will also serve the Maritime Provinces) and Ontario by December 1, 2001. We will continue to provide support and have put together a team at each location to handle your sales, customer service, application engineering and technical service needs.