XZERES Reports First Quarter Fiscal Year 2012 Financial Results

XZERES Corp.(OTCBB: XPWR), designer, developer and producer of distributed generation wind power systems for the small wind market. End Quote

(1888PressRelease) July 18, 2011 - Wilsonville, Oregon - XZERES Corp.(OTCBB: XPWR), designer, developer and producer of distributed generation wind power systems for the small wind market (2.5kW-100kW) and power management and efficiency devices for the commercial and light industrial market, announced today its financial results for its fiscal first quarter ended May 31,2011.

Financial Results

Revenue for the fiscal first quarter ended May 31, 2011was $1,017,217a57%sequentialincreaseas compared to the previous fiscal fourth quarter ending February 28, 2011. Revenue by channel for the first quarter for our wind power systems business grew to 47.2% direct and 52.8% indirect as compared to32.8%directand67.2%indirect for the previous fourth quarter. In future quarters, as we grow sales of our recently acquired line of power management and power efficiency products, we expect to report revenue by channel and figures for this business segment, as well.

"During the first quarter, we saw continued growth as we began initial deliveries of our new 442SR next generation 10-kilowatt turbine small wind power systems. We also achieved significant sales model progress in terms of our revenue by channel mix, with an increasing percentage of our sales being direct. This direct sales success is the result of our efforts that began last July, when we decided to initiate a disruptive sales model approach to the conventional, purely dealer-based, distribution model that has been prevalent in the wind turbine business and instead focus more of our efforts upon direct, self-reliant, internally generated business, thereby gaining several distinct advantages. While we welcome and appreciate dealer business, and our dealer business is growing meaningfully, we will continue to aggressively implement this direct sales model domestically and additionally begin to apply it internationally - initially in the United Kingdom- as we ramp our international sales. We will also apply this direct sales model domestically to our new line of power management and power efficiency solutions," said Frank P. Greco, CEO and President.

Quarterly Business Highlights

* Initiated pilot project deploying our 442SR next generation 10-kilowatt turbine small wind power system for a potentially large, micro-grid, island electrification opportunity in Vietnam

* Began final testing of our own proprietary battery charging controller and solution for remote electrification

* Shipped our first container (9 units) of 442SR small wind power systems to the United Kingdom

*Integrated manufacturing and completed initial product sales of recently acquired line of power management and power efficiency devices

Outlook

We expect continued strong growth in our distributed energy, small wind power systems business and based upon early indications of exceedingly strong, but initial market feedback, on a relative basis, potentially even faster growth for our power management and power efficiency business segment. We further expect that by fiscal year end ( February 28, 2012) our power management/power efficiency business will become a meaningful, if not significant, part of our overall business on a going-forward, revenue run-rate basis; and while perhaps still smaller in absolute revenue dollars than our wind power systems business, potentially our fastest growing business segment, due to this product line's fast sale cycle and low average selling price. Despite potential quarterly fluctuations, due to product development activities or establishment of production processes associated with bringing new products to market, on an annual basis, we still expect gross margins to rise substantially from current levels over the next two fiscal years as we develop, acquire and deploy new products, services and business models. Furthermore, we maintain our goal [ not a guarantee] for FY 2012 ending February 28, 2012, to significantly more than quadruple our revenues, as compared to the recently completed fiscal year 2011.

For more information about XZERES or any of its products, please visit www.xzeres.com and www.xzeresenergy.com

About XZERES:

XZERES Corp. is a renewable energy and clean energy technology company that designs, develops, manufactures and markets distributed generation, wind power systems for the small wind (2.5kW-100kW) market as well as power management and power efficiency solutions for the commercial, light industrial and residential markets. Our grid connected and off grid wind turbine systems, which consist of our 2.5kW and 10kW devices and related equipment, are utilized for electrical power generation for applications and markets such as residential, micro-grid based rural and island electrification, agricultural, small business, rural electric utility systems, as well as other private, corporate infrastructure and government applications. Our wind power systems are focused on distributed energy, where a specific machine's energy output is largely or entirely used on-site where the equipment is installed, as well as grid connected applications. While many of our customers take advantage of their local net-metering rules within the United Statesand Feed In Tariffs that are often available in Europeand Internationally (to sell power back to the grid), our wind power systems are not dependent on transmission needs to carry the energy produced to another location and are therefore well suited for remote electrification, available with or without a battery coupled solution. Our power management and power efficiency solutions are deployed primarily for commercial and light industrial applications, and secondarily residential usage and target both urban and rural customers.

Forward Looking Statements and Safe Harbor Statement:

The information provided herein may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. XZERES Corp. claims the protection of the safe-harbor for forward-looking statements contained in the Reform Act. These "Forward-looking statements" are largely based on our current expectations and projections about future events and financial trends affecting the financial condition of our business. Such forward-looking statements include, in particular, projections about our future results included in our Exchange Act reports, statements about our plans, strategies, business prospects, changes and trends in our business and the markets in which we operate. These forward-looking statements may be identified by the use of terms and phrases such as "anticipates", "believes", "can", "could", "estimates", "expects", "goals", "forecasts", "hopes", "intends", "may", "plans", "projects", "targets", "will", and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters such as new business models, new products, product enhancements, new technologies, sales levels, expense levels and other statements regarding matters that are not historical are forward-looking statements. Management cautions that these forward-looking statements relate to future events or our future financial performance and are subject to business, economic, regulatory and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements of our business or our industry to be materially different from those expressed or implied by any forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: (a) new business models may be more difficult and/or take longer than anticipated, may be more costly than anticipated and may have unanticipated adverse effects relating to the Company's business; (b) the challenge of compensating and retaining key employees; (c) the impact on the Company and our customers from the current domestic and international economic, geo-political and financial market conditions; (d) the success of our new products and new business models in achieving their expected benefits; (e) to perform as expected without material defects; (f) to be qualified and accepted by our customers, (g) to successfully compete with products, systems, technologies and services offered by our competitors; (h) we may not be successful in undertaking the steps currently planned in order to further develop the business; and (i) other risks and uncertainties described in our filings with the Securities and Exchange Commission.

Neither XZERES Corp. management nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to us as of the date hereof, and subsequent facts or circumstances may contradict, obviate, undermine, or otherwise fail to support or substantiate such statements. We caution you not to rely on these statements without also considering the risks and uncertainties associated with these statements and our business that are addressed in our filings with the Securities and Exchange Commission that are available on the SEC's web site located at www.sec.gov. Certain information included in this press release may supersede or supplement forward-looking statements in our other Exchange Act reports filed with the SEC. We assume no obligation to update any forward-looking statement to conform such statements to actual results or to changes in our expectations, except as required by applicable law or regulation.

Suzanne Holbrook

Contact:
Tina Mortensen
XZERES Corp
9025 SW Hillman Court
Suite 3126
Wilsonville, OR 97070
503-388-7331
info ( @ ) xzeres dot com
http://www.xzeres.com

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