Cannon Power announces start of second Palm Springs wind project. Over 100 MW now under construction.

July 20, 2002 - On July 19, Cannon Power Corporation announced the commencement of construction of its 61.5 MW Whitewater Hill wind project in Palm Springs, California. Following commencement of its 41 MW Cabazon wind project just two months ago, Cannon now has over 100 MW now under construction in Palm Springs. Both projects are under contract to be acquired by Shell WindEnergy.

The project will consist of 41 GE 1.5 MW turbines and will sell electricity under a long-term power purchase contract with the California Department of Water Resources. Project completion is scheduled for August 2002. Construction financing is being pro- vided by Shell WindEnergy which acquired the Whitewater project company on July 19.

"The Whitewater project was quite complex since it involved locating a number of large turbines in and amongst an existing array of many smaller turbines," said Gerry Monkhouse, Cannon's Chairman. "With an August 31 on line date, we're implementing a very expedited construction schedule which will be a real challenge since we're at the height of the wind season."

Padoma Wind Power, having successfully placed the equity on both the Cabazon and the Whitewater projects worked closely with the Cannon development team to help resolve the many complicated development issues related to both projects. According to Monkhouse, "We had two projects coming together at the same time, and Padoma was an enormous help. That, and Shell's support, was instrumental in our being able to realize these projects."

"It has been a real pleasure, and quite a challenge, to help Cannon finance and implement these two projects, thereby contributing to ensure over 100 MW of much needed additional clean power generation in our home state of California", said Jan C. Paulin, President & CEO of Padoma Wind Power, a La Jolla, CA based wind energy development and consulting company. "But it could not have been done without Shell's strong commitment to the projects", Paulin added.

Cannon Power, a long-time player in the wind industry, has numerous projects currently under development in the US and Europe.