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Composite Technology Files for Chapter 11 Protection

Protection to address court order obtained by lender

The filings, made voluntarily in the U.S. Bankruptcy Court for the Central District of California, are designed to enable CTC and its subsidiary, CTC Cable, to continue to develop, produce and market its ACCC conductor to the utility industry.

CTCs decision to seek bankruptcy protection to protect the viability of the company has been necessitated due to actions taken by its lender last week:

- On Tuesday, April 5, 2011, the lender served notice of default and accelerated its loan for $10,000,000.

- On Thursday April 7, 2011, the lender filed an application for an emergency protective legal order which was granted without a hearing on Friday afternoon, April 8, 2011.

The court order commands the companies to immediately send all remaining cash recently released from the escrow containing proceeds from the sale of the wind division in 2009. The lender also froze funds with account control provisions from the loan agreement. Therefore CTC had little alternative but to file since it would have been left without funds to operate its business.

During the bankruptcy proceeding, CTC plans to continue operating its business in a normal fashion and timely servicing its customers needs. The company plans to move forward with product sales work and to convince strategic relationships that this reorganization should allow the company to continue to deploy ACCC conductor product to an industry in great need of solutions for electrical grid systems.

About CTC

Composite Technology Corporation's patented ACCC conductor technology enables superior performance of high voltage transmission and distribution electrical grids. ACCC conductors use CTC's proven carbon fiber core which is produced by its subsidiary, CTC Cable Corporation, at its Irvine, California headquarters and delivered to qualified conductor manufacturers who produce and distribute ACCC conductors to operators of electrical grids worldwide. CTC's conductor technology significantly reduces thermal line sag and can replace similar diameter and weight traditional conductors with its higher capacity and more energy efficient ACCC conductor. It is an ideal conductor for both upgrading existing power lines as well as building new lines since the technology allows for the reduction of the number of support structures and/or a reduction of their height. Since its commercial introduction in 2005, ACCC conductor has been selected for over 10,000 kilometers (6,214 miles) of projects in all environmental and operating conditions, including severe heat and ice environments, long span applications and high capacity corridors for the modern grid. ACCC is a registered trademark of CTC Cable Corporation.

For further information, visit CompositeTechCorp.com (http://www.compositetechcorp.com) or contact Investor Relations, James Carswell, +1-949-428-8500.

This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (the Company). However, actual events or results may differ from the company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, resolution of pending and threatened litigation matters involving CTC or its subsidiaries, resolution of disputes with CTCs or subsidiaries creditors competition with larger companies, development of and demand for a new technology, general economic conditions, the availability of funds for capital expenditure and financing in general by the company and its customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the company's ability to manage growth. Other risk factors attributable to the company's business may affect the actual results achieved by the company, including those that are found in the company's Annual Report filed with the SEC on Form 10-K for fiscal year ended September 30, 2010 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K that will be included with or prior to the filing of the company's next Quarterly or Annual Report.

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Composite Technology Corporation
2026 McGaw Ave
Irvine, CA 92603
PHONE. 949 428 8500
EMAIL: jcarswell@compositetechcorp.com
http://www.compositetechcorp.com