Korea
Alpha Technologies secured an order for 2,000 XM2-915P-CB's for Hanaro Company in Korea in first quarter 2006. Hanaro is one of the largest Broadband operators in Korea and currently has over 3.6 million subscribers. This is the second order, in addition to the 2,760 systems they ordered in 2005, as a network reliability improvement project to enhance their service offering, such as Internet Protocol Television (IPTV), which is scheduled to launch by the fourth quarter of 2006. Alpha began shipping products from their manufacturing warehouse in China directly to Korea in the second quarter. Shipping from China will greatly reduce shipping costs to Asian customers and concurrently increase competitiveness of Alpha products in the aggressive Korean cable marketplace.

Bangladesh
Alpha entered the broadband market in Bangladesh as they have been recently upgrading their network. Alpha secured the first confirmed order from Nationwide Communications Limited, a cable television operator in Dhaka. The cable operator is currently upgrading their Hybrid Fiber Coax (HFC) network and will deploy 18 systems, including the XM2-1350E-CE-CFR.

Spain

All Metro underground rail stations in Madrid, Spain have been equipped with the Pinnacle Plus 6000 rack mount UPS from Alpha. For the metro application, the true online Pinnacle Plus 6000RM was used and connected to large battery banks, allowing for long autonomy times in addition to its generous eight hours of backup power. Alpha competed with other major UPS suppliers and their reliability, competitive pricing and the unique technical solution and support, sold the customer on the Alpha UPS system. 50 units were installed, with more expected to follow shortly, as Alpha's Madrid-based distributor in Spain receives more orders for Pinnacle Plus systems. In April, Alpha Technologies GmbH received an order for 125 Pinnacle Plus 150RM UPS systems and another 250 units are forecasted throughout 2006. The Spanish market is one of the most competitive in all of Europe, and Alpha continues to gain valuable market share.

Mexico, Caribbean, Chile
The consolidation of Mexican, Caribbean and Chilean CATV operators has spurred a renewed level of investment in networks and services in the region.

"Shareholders and executives of these CCTV companies are placing great emphasis on the roll out of Voice Over Internet Protocol (VoIP) services, business services, digital television and high speed Internet. This results in greater interest than just a standard XM2 package. Operators are asking for more runtime and the AlaphaCell 210 battery is meeting their challenge. In addition, their are looking at the newly redesigned AlphaGuard, and new battery expansion enclosures," said Paul Shmotolokha, VP of International Sales.

This year, the Latin American market has embraced the need for status monitoring and software. Alpha's AlphaNet family of networking products includes the Ethernet and DOCSIS Status Monitoring (ESM and DSM) broadband power communication cards, enabling Alpha's XM2 UPS to connect directly to a network with standard Ethernet, a user supplied cable modem or an embedded cable modem.

Antonio Galvez, Sales Director for Latin America commented, "Interest in HMS and DOCSIS transponders are about equal, which differs from the US market where DOCSIS is king. Our customers are also very excited about the new lower entry costs and ease of use associated with the AlphaNet ESM and DSM line."

Alpha's distributors for Latin America and the Caribbean have been actively stocking on AlphaGen Portable Generators for immediate requirements arising in the field. Hurricanes are part of the reason to maintain stock of these units, but mainly it is to backup even-more sophisticated networks that are evolving where operators are deploying more business services or critical hub sites.

Jorge Villobos, Alpha's newly appointed Manager of AC/DC Headend Sales for Latin America, commented, "Cablevision Mexico praised the AlphaGen Portable's low noise versus normal AC Generators and are now wanting to switch over to Alpha's portable product solution."

In Latin America, the need for powering solutions with extended backup for critical nodes has risen. In Jamaica, Alpha is deploying high-end Powernodes with 5kVA generators to power up to fourteen nodes from each site.

The GMX standby power supply is for the cable industry and features a compact design and lightweight ferro transformer, adding to its cost effectiveness and ease of installation. Customers in Argentina, Venezuela, and Brazil have expressed immediate interest, and it is predicted that these markets will recognize the GMX product line as soon as the trials are finished. Basic, yet reliable, this power supply offers necessary options as the Latin American market has embraced the need for status monitoring and software.

Europe
Alpha expands its three phase UPS business in Europe. Since mid-2005, Alpha Technologies has been offering the new three phase series named "TRI-Power" to their customers. Alpha offers two different models: TRI-Power X33 with transformer technology from 20 to 800kVA and TRI-Power X33T with transformerless technology from 10 to 80kVA. The Alpha TRI-Power X33T uses online double conversion technology where the load is always powered by the inverter, ensuring a filtered and stabilized sinusoidal voltage. The cost effective transformerless technology has allowed Alpha to successfully enter the IT and Telecom markets. The lightweight and compact size of the transformerless unit better meets the needs of each IT and Telecom application.

For industrial applications where overload situations are caused through increased loads, transformer technology is absolutely necessary to protect individual powering applications. The TRI-Power X33 is a high performance 20 to 800kVA UPS system with redundant processor controlling and modern fiber optic data transfer. Since Alpha has been offering these new TRI-Power models to European customers, sales in the three phase market has increased dramatically.

The European service network, coupled with Alpha's presence and five European branches have contributed to the successful sales of TRI-Power X33 UPS systems. In the future, Alpha plans to extend the transformerless range to a capacity of 200kVA, by 2007. At the end of 2006, a modular system with 15kVA modules will be available to complete the entire range of the three phase product offering.

Russia
January through March 2006, was a busy time in Russia as 20 powering projects rose from 13 different power and telecommunication companies. Among them were such distinguished Russian distributors as INELT, Abitel, Advantek, UZO-Electro, Grand Motors, Telco, and others. AlphaTEK is experiencing increasing interest in the Russian power supply market using Alpha Technologies equipment. Interest has increased for Pinnacle Plus and XM2 units for the telecommunication, headend and cable TV applications. AlphaTEK Russia has also encountered applications in computer networks and diesel generator startup, using TRI-Power X31/X33 three phase UPS. Presently, AlphaTEK is negotiating a contract with Abitel, a leading developer and manufacturer of communications systems in Russia, for 240 Pinnacle Plus units. These units will be used to backup telecommunication equipment and digital telephone stations.

UZO-Electro of Moscow, Russia began purchasing three phase systems consisting of high performance TRI-Power X33's. UZO-Electro is one of Russia's leading distributors of powering equipment. The purpose of this project was to provide 15 minutes of backup power during the start up of a diesel generator for a water tower in Krasnodar, Russia. The TRI-Power X33's were a perfect industrial solution for this customer and the system has worked flawlessly.

AlphaTEK also completed distributor agreements with several other companies, including Abitel, Lagoda, UZO-Electro and Grand Motors for the supply of Alpha Technologies backup power equipment throughout Russia. AlphaTEK is seeing rapid growth in the AC UPS market and is working to meet these increasing demands while satisfying new customers, while continuing to take care of existing ones. More large projects are expected to be finalized in the third quarter.