This week: Catch the Wind, Inc. Reports Second Quarter 2011 Financial Results

MANASSAS, VA, Aug. 30, 2011 - Catch the Wind Ltd. (TSXV: CTW), providers of laser-based wind sensor products and technology, today reported its financial results for the three-and six-month periods ended June 30, 2011. All figures are in U.S. dollars unless otherwise stated. "The second quarter of 2011 was the most active quarter for sales in our history with the completion of five separate sales agreements totaling 34 Vindicator units; highlighted by our largest order to date, our second licensing agreement, as well as the potential for substantial follow on orders," said Phil Rogers, President and CEO of Catch the Wind. "We look forward to further developing our operational capabilities and supporting the production and manufacturing side of the business. The completion of our CDN$15.1 million equity offering subsequent to quarter-end provides us additional resources to start building out our commercial operations, support our ongoing sales effort, and continue the advancement of our revolutionary product."

Selected Q2 2011 Financial and Operational Highligs

Entered into an agreement for the sale of 20 Vindicator® LWS units to TransAlta Corporation, Canada's largest independent renewable energy provider, with an option to purchase additional units. The sales agreement was the largest to date for wind turbine control.

Entered into an agreement for the sale of six Vindicator® LWS units to affiliated entities of Invenergy Wind LLC, a developer, owner and operator of large-scale renewable and other clean energy generation facilities in North America and Europe, for installation in groups of two located at three different Invenergy wind farms in the US.

Entered into an agreement for the sale of six Vindicator® LWS units to Boralex (TSX: BLX), a power producer with an installed capacity of 700 MW across North America and France, with the option to purchase hundreds of additional units over a set period.

Entered into an exclusive worldwide licensing agreement with AXYS Technologies to integrate the Vindicator® LWS into an AXYS system for land-based wind resource assessment applications. AXYS will purchase a minimum of 58 high-precision Vindicator® LWS units over the next five years.

Entered into an agreement for the sale of a Vindicator® LWS unit to Kruger Energy Port Alma, a 44-turbine, 101.2 MW wind farm in Ontario, Canada to be integrated to a SWT - 2.3 MW turbine, expanding the number of turbine makes and models on which Catch the Wind has installed turbine yaw control systems.

Entered into an agreement for the sale of a Vindicator® LWS unit to the Illinois Institute of Technology, which was subsequently installed on its GE 1.5 MW Test Turbine, operated by an affiliate of Invenergy LLC.

Highlights Subsequent to Quarter-end

Completed an equity offering for aggregate proceeds of approximately CDN$15.1 million.

Signed a letter of intent to enter into a collaborative agreement with TechnoCentre éolien to install a Vindicator® unit on one of its REpower MM92 2.05 MW turbines located in Québec, which will validate the Vindicator® for use in cold weather and harsh winter conditions, broadening potential markets especially in Québec where over 3,000 MW of wind power is expected to be installed over the next three to four years.

Leased, with an option to buy, a Vindicator® unit to a leading manufacturer of wind turbines for up to six months, marking the first lease agreement for a Vindicator® unit and creating a new source of cash flow.

Announced the transitioning of Phil Rogers' role from CEO and President of the Company to Special Advisor, commencing December 31, 2011 or earlier if a suitable CEO candidate is found prior to December 31, 2011.

Appointed Dr. Jo Major, Jr. as non-executive Chairman of the Board of Directors.

Financial Performance

Catch the Wind did not recognize revenue for the quarter ended June 30, 2011 or for the comparable period in 2010. Catch the Wind generates revenue from the sale and rental of its laser wind sensing products. On a six-month basis, Catch the Wind generated $390,000 for 2011 compared to no revenue for the same period in 2010. The Company operated as a development stage company from its inception until June 15, 2010, therefore, had not recognized any revenues or commenced its principal commercial operations.

Operating expenses for Q2 2011 were $2.3 million, down 40.9% from $3.9 million for the corresponding period of last year. The approximately $1.6 million net decrease in expenses is largely due to three factors: an approximately $1.3 million aggregate decrease in inventory valuation adjustment expense and an approximately $1.8 million increase in non-cash gain related to the change in fair value of the Company's warrant liability, which were partially offset by an approximately $1.7 million increase in research and development expense. It is important to note that expenditures for research and development efforts, while comparable on a period-to-period basis, are reflected differently in the comparative financial statements due to the Company's transition from a development stage company to a commercial enterprise in June 2010.

Such R&D fees were capitalized in Q2 of 2010, whereas they were recorded as a current period expense in Q2 2011.

For the six-month period of FY2011 operating expenses were $10.2 million, up 44.0% from $7.1 million for FY2010. The approximately $3.1 million increase in operating expenses is partially attributable to an increase in research and development expense of $3.1 million due to the capitalization of these engineering services related to the development of the Company's products during the first six months of 2010 as opposed to recording them as a current period expense during the first six months of 2011, offset in part by a $1.3 million decrease in inventory valuation expense and a $0.7 million decrease in professional engineering fees. Also contributing to the expense variance was a $1.1 million increase in cost of sales (2010-NIL) and a $0.9 million increase in the non-cash loss related to the change in fair value of the Company's warrant liability.

Cost of sales for the quarter was $273,797. There was no cost of sales for the corresponding quarter of 2010 as the Company was a development stage enterprise at that time. On a six-month basis, cost of sales was $1.1 million compared to nil for the same period in 2010.

Catch the Wind recorded a net loss for Q2 2011 of $2.3 million or $0.03 per share. These compare to a net loss of $3.9 million, or $0.07 per share, for the same period of 2010. On a six-month basis, Catch the Wind generated a net loss of $9.8 million or $0.12 per share compared to a net loss of $7.1 million or $0.12 per share for the same period of FY2010.

At June 30, 2011, Catch the Wind had a working capital deficit of $1.5 million, including cash and cash equivalents of $0.3 million, compared to working capital of $6.9 million and cash and cash equivalents of $6.8 million at December 31, 2010.

Catch the Wind has filed its financial statements for the three- and six-month period ended June 30, 2011 and related Management's Discussion and Analysis (MD&A) with securities regulatory authorities. Catch the Wind's financial statements, MD&A and related documents are available via SEDAR as well as through the Company's website, www.catchthewindinc.com.

Conference Call

Catch the Wind will host a conference call to discuss its Q2 2011 financial results on Wednesday, September 7, 2011 at 10:00 a.m. EST. The delay between the conference call and the release of financial results is due to scheduling conflicts with the senior management team.

To access the conference call by telephone, dial 647-427-7450 or 1-888-231-8191. Please connect approximately 15 minutes prior to the beginning of the call to ensure participation. A question and answer session for analysts and institutional investors will follow management's presentation.

A live audio webcast of the conference call will be available at www.catchthewindinc.com. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived at the above web site for 30 days.

A taped rebroadcast will be available to listeners until 12 a.m. ET on Wednesday, September 14, 2011. To access the rebroadcast, please dial 416-849-0833 or 1-855-859-2056 and enter passcode 94203409, followed by the number sign.

About Catch the Wind Ltd.

Catch the Wind Ltd. is a high-growth technology company headquartered in Manassas, Virginia. The company was founded in 2008 to develop and manufacture the Vindicator® laser wind sensor.

Catch the Wind serves the commercial market sector for laser based wind sensor systems, recognized as the "gold standard" in wind measurement. The company is focused on becoming a major contributor in making clean, renewable wind energy more affordable and profitable. For more information, visit www.catchthewindinc.com.

Forward-Looking Information

This news release includes certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release, include, but are not limited to, economic performance and future plans and objectives of Catch the Wind.

Any number of important factors could cause actual results to differ materially from these forward-looking statements as well as future results. Although Catch the Wind believes that the assumptions and factors used in making the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed timeframes or at all. Catch the Wind disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.