ST. PAUL, MN (February 1, 2005) - Power Systems Research has concluded its power generation survey for the fourth quarter of 2004. The fourth quarter has proven to be successful for generator sales due to strong market activity and the winter weather conditions. PowerTracker™ dealer and distributor respondents foresee a strong business outlook for the gen set market because of the high level of order intake they have already received for 2005. Reports are that fourth quarter sales were up 11.74% overall in U.S. and Canadian gen set markets, and market trends are set to continue that upward growth in the first quarter of 2005.

Looking at the past two years in the power generation industry, the market for standby gen sets has been growing consistently since the second quarter of 2003. In the fourth quarter of 2004, gen set dealers estimated their sales for standbys were up by a record level of 11.91% over the previous third quarter in 04.

Some of the motivating factors attributing to this rise in demand of gen sets are that more private consumers have shown an interest in having an alternate source of energy and weather effects still play a vital role in dictating demand. Past hurricanes have further highlighted the need for standby generators for businesses who need to have an uninterrupted supply of electricity.

Fourth quarter sales for generator sets were reported up by 11.74%, which is an increase from 9.95% in the third quarter of 2004. Sale increases to institutions have gained ground with an increase of 5.00% compared to 0.53% in the third quarter. However, demand for other consumer groups fell, with the biggest drop in sale changes coming from the industrial sector whose sales increased 8.12% in the third quarter but only 3.54% in the fourth quarter of 2004. However, the greater demand from government institutions should help maintain the momentum in the industry.

PowerTracker™ monitors the market developments for all engine-powered generator sets sold in the United States and Canada. Gen set dealers, distributors, business consumers and household consumers are surveyed quarterly to determine their short-term expectations for the market. PowerTracker™ analyzes market activity and industry developments for various gen set applications, brands and customer groups. The core data for this gen set study originates from a series of 1400 interviews conducted on a quarterly basis with potential and actual users of gen sets as well as key dealership and distributor personnel. Further information about this survey and other MarketTracker™ surveys is available at http://www.powersys.com/sur_track.html.

Power Systems Research is a global market research and consulting company specializing in the engine, original equipment, and components industries. Since the company was founded in 1976, Power Systems Research has been the authoritative source of market information and business intelligence to the power products and drivetrain industry. Power Systems Research is headquartered in St. Paul, Minnesota and provides market data and customized project work to the world's leading vehicle and equipment OEMs and component suppliers. The company has a global presence with operations in Detroit, Brussels and Tokyo. Further information is available at http://www.powersys.com.