BERAL, INC.  
Andrew G. Racz  
Director of Research  
300 East 54 Street, Suite 26C  
New York, New York 10022  
Telephone: (212) 319-6949  
Fax: (212) 753-1944  

 E-mail: mlikar@aol.com   

April 27, 2008

Q:  Mr. Loewen, in a few sentences, what is Altek Corp.

A:  Altek Power is publicly listed corporation in Canada under TSX Venture Exchange. The company has approximately 2,300 owners, shareholders, and is in the business of producing a 1.2 megawatt, which is 1200 kilowatt, electrical generating plant. That plant, while it produces the 1.2 megawatts of electricity, also produces approximately 2.5 megawatts of thermal energy which can be used for the heating of buildings, air conditioning or steam generation for industrial purposes.

Q:  Mr. Loewen, we are in the year 2008, and at least the two Democratic contenders for the American presidency each talk about giving $50 billion for research for what's called alternative energy. Would you please tell me where does all that fit into your prospects?

A:  Altek Power, through its 1.2 megawatt electrical generating plant, is an alternative energy consumer to this extent. Alternative energy refers to the use of alternative sources of energy to make power. Examples would include solar, bio gas, syn gas, bio diesel, and several other fuels like ethanol.

Altek Power Corporation reports the following update of an installation of an AT1200 Electrical Generation facility in Northern Alberta, Canada. The plant has successfully completed run testing to a load bank at the site. Final commissioning of this facility is expected to be completed by early May following receipt of certain electrical switching equipment required in order to go on line. The AT1200 will provide electrical power for the operation of an oil and natural gas battery. This project represents the first installation of the new AT1200 in Canada.

Based upon this installation, the sale of an AT1200 to Sasil of Italy and several more sales under negotiation, the Company looks forward to a strong year. The Company’s focus on manufacture, assembly, and sale of AT1200 Electrical/Thermal Generation plants will continue in order to meet an accelerating demand for reliable power production in the 1,000 to 5,000 kW sector.

Altek Power Corporation develops timely, profitable and environmentally responsible energy solutions. Altek provides quick to market electrical generation plants, which respond to energy needs worldwide. Further information may be found at www.altekpower.com

Our Mission: To provide timely, profitable and environmentally responsible energy solutions.

Q:  Now, all these words are well known to the audience of CNN. What you do is not known. So would you please connect your activities to what you were actually just saying?

A:  Certainly. The key to our business is that our engine, the turbine, the gas turbine which runs our plant, will be designed to use each and all of the fuels that I just mentioned.

Q:  Mr. Loewen, the American politicians ever since the mid-seventies were talking about the different structure and the fuels that Detroit is using up. Now, over thirty years nothing has happened. But Detroit is using alternative fuels. They're supposed to use alternative fuels. Now, where do you come into this enormous picture?

A:  The Detroit companies use a reciprocating engine to power their vehicles. Reciprocating engines are known to be highly restrictive on being able to use more than one fuel. If you recall, that when you purchase a new car your car has a fuel specified. It must use only perhaps unleaded gas or perhaps diesel. Our turbine will be designed to use several fuels. Bio gases, all of the gases, syn gas. It will also designed to use diesel, bio diesel, various kinds of liquid fuels. So basically we have one engine that's capable of using many fuels, and that indeed is both unique and it's also, in our opinion, very responsible as an alternative energy supplier.

As an independent power producer and manufacturer of distributed generation plants, Altek offers quick-to-market electrical generation solutions in response to the growing demand for energy throughout the world.

Corporate Information

Headquartered in Kelowna, British Columbia, Altek Power Corporation develops timely, profitable and environmentally responsible energy solutions.

Q:  Now, you have a turbine. How do you manufacture it and how do you use it and where do you use it?

Sales Likely

A:  The various components of the AT 1200, which our power generation plant is known as, are manufactured throughout the world, many of them in the United States and Canada, and they are all assembled in British Columbia, Canada. The assembly must be done to a very high standard, and because this is a power generation plant, the plant must be built to a standard that meets all of the standards of the various countries in which we sell the unit.

Q:  You make this unit. You assemble it in Canada. Where do you try to sell it and for what purpose?

A:  Our efforts in sales were augmented by the Canadian government through the Canadian Trade Commission and the Canadian Consulate Services. We have been introduced at meetings in various countries like Poland, Romania, Lithuania, and several other Eastern European countries that are developing and that require this size and type of power generation. Through the European Union, which is quite advanced in their desire to produce power economically through the use of alternative fuels, is a large and strong supporter of our company, as is the Canadian government. As a consequence, we have been introduced to various business people in these various countries, and we are developing a large number of purchases. These purchases are made by both cities whom require electricity and district heating for their homes, businesses which require electricity and heat for their manufacturing processes.

Q:  Let me pick up one point, a particular country, Poland. Forty-five million people, the country had to be rebuilt a hundred percent after the Second World War, which is your lifetime, my lifetime, and they have had electricity ever since. As of today, they have electricity. What is going to change and where do you benefit from it?

A:  In a country like Poland, many of the small communities are still without the requisite power that they need in order to expand their communities. In order for these communities to expand, they cannot begin with large mega projects. They must begin with small projects. And this is driven mainly because of a lack of infrastructure in terms of the transmission wires for the electricity or in terms of the distribution for the thermal heat. Our plant is designed to produce sufficient power to provide electricity for perhaps 1,000 to 1,500 homes and to provide sufficient heating for perhaps 400 residences.

Q:  I presume the conditions in my native country, Hungary, is no different.

A:  That is correct.

Q:  I have only once in my lifetime spent two or three weeks in a Hungarian village. That was after the war and I even remember that there were no newspapers, and some civil servant coming from the mayor or whoever came around every two or three days and created some noise, banged something, and he said, well, these are the news items which we want to bring to everybody's attention. I do not exactly recall whether there was full electricity. There must have been something because I was reading in the evening. I don't know how it is now with television or telephones, but what you are saying is we are going into these communities which had not been improved since 1950 by the communist government. For instance, in all of Hungary there are three telephone companies, of which one is really big. So you go into this community where everything is backwards, and the villages around where I was, let's say there are 1,500 people. What is it that you do for them?

A:  When we come into that village, we invariably visit the central heating plant. It's a single furnace which provides for the heat for each of the homes in that 1,500 person village. I have personally witnessed furnaces that had 6-inch holes in the sides of them that were using coal that was being burned in a very inefficient manner at a very high cost, and with the joining of these countries with the European Union, the European Union has set upon these countries rules of emissions and environmental standards. In order for the countries to remain in the European Union they must improve the efficiency of these kinds of plants. These plants only make thermal energy and they use very little of the energy of the coal to do so. Our recent private placements enable our European expansion.

Our Mission: To provide timely, profitable and environmentally responsible energy solutions that increase shareholder value.

Q:  I want to make a comparison, which may or may not be fair. But let's take Serbia. After the war of 1990's, they didn't have the money and a reason perhaps to build a all-encompassing telephone system. So everybody has a cellular telephone. As a matter of fact, everybody has a cell phone in Hungary, in Russian, in China, and probably India. Are you telling me that just as the telephone system of these new countries, which includes the Far East, said it's true that in the United Kingdom everybody has a telephone at home and everybody knows everybody's telephone number, long distance, and so on. But to build it everywhere in the Dalmatian Coast and so on would be an absolute fortune, so we give everybody a cell phone and that's it.

A:  You're absolutely right. The cost of installing cellular towers in Easter Bloc countries and developing countries is far less costly than the cost of installing wires. That same infrastructure issue applies to the generation of electricity, and the benefit which has been recognized by the EU, the European Union has recently passed a ruling that they will provide extra support to countries where their power generation in fact includes 60 percent of the power being used for district heating and 40 percent for electricity. Our equipment complies directly for that purpose.

Q:  So in other words, what you are really saying is that your way of generating electricity, heat, etc., is basically the foster brother of the cellular telephone system.

A:  Yes.

Q:  So when communism disappeared, and as Mrs. Thatcher said, it was thrown into the ash pile of history, the world decided that there are ten million people living in Hungary and each of these ten million can buy shoes, DVD's, cigarettes which you can't sell in America. So in other words, they are very good consumers. They work, they're consumers, but in order to put them into business you have to modernize the heating system, the electrical system, the telephone system. Otherwise, you can't do business. As a matter of fact, they build everywhere very nice airports so people can fly back and forth, so they are part of the system, part of the consumer society. And that is why today instead of two billion people working in this world there are seven billion people. And because there is a system of heating, electricity and telephone, all the American movies can be sold to them and they are part of the consumer society. That's basically where you fit into the world.

A:  That is correct. And if I may say so, wherever a community in an emerging country is able to provide for reliable electricity, reliable heat and reliable communication, that community has every time without exception exceeded the expectations of its populace. The people have done much better, their standard of living has increased drastically, and this can all be done without mega projects. Historically the generation of electricity has been completed by very large plants and very long transmission wires. Today distributed generation in the form that we produce is the chosen way because the projects are smaller and much more numerous.

Q:  Altek today has 116,000,000 shares. At $0.8, it's less than $10 million market cap. The company has a modest amount of cash, has prospects to deliver between 25 and 50 units which you can sell for less than a million dollars, maybe $750,000. But if you take the outside figure of 50 times a million, it's a potential $50 million backlog, and with very modest sums of money, but with some government support you have a market cap of $10 million and a relatively experienced management. What is it that's needed to install let's say the first ten units?

A:  To answer that I must go backwards one step. It's important to understand that in excess of $14 million has been spent on developing our technology. Our technology is now ready for the market, and this has been proven by our recent sales which we published. The next ten units, to answer your question properly, will require an initial investment of $1.5 million and a down-road investment of between $5 and $10 million additional dollars. As my obligation is to the shareholders of this company, it would be the desire of this company to sell fewer and to own more of the plants which the public wishes us to install worldwide.

Q:  Let's assume you find the $10 million and you take a 3-4 year viewpoint, how many of these generation units do you think you will be able to manufacture and sell?

A:  Four years from now, our annual output is estimated to be in the range of 150 to 200 units per year.

Q:  So that is over $100 million, let's say $100 million a year.

A:  I suppose it is, yes.

Q:  And you envisage selling as well as leasing with units to become like a manufacturing and marketing merchant bank of what you call your electricity generating industry?

A:  Yes. In addition to that, we expect to become a utility, an actual producer of energy in several countries worldwide, where we would own the equipment and we would, in fact, sell the electricity and the thermal energy.

A:  I totally concur with your thinking, and I wish to also say as an example that in the Gulf of Mexico today, the United States has very large amounts of oil extraction through oil platforms. We have a solution. Our equipment will provide a solution which will eliminate a very large amount of the air pollution being caused by power generation on those platforms, while at the same time providing a much more ergonomic and safe environment for the workers on those platforms.

It's interesting to note that a very few miles north of the northern border of the United States, in Alberta, Canada, there is more oil than in all of Saudi Arabia. We have a history, Altek Power, that is, has a history of working in Alberta in the oil fields, and is very familiar with the needs of the oil extraction business and our equipment is designed to augment that process. With this in mind and this alone, Altek's success in terms of sales is assured. With the rest of the world, we will be hard pressed to keep up with the demand. We look forward to a most exciting future for our shares.