Vancouver, Canada, May 12, 2005 - Xantrex Technology Inc. (TSX:XTX) announced today the expansion of its sales operations in the Chinese market with the opening of an office in Beijing, China.

Vancouver, Canada, May 12, 2005 - Xantrex Technology Inc. (TSX:XTX) announced today the expansion of its sales operations in the Chinese market with the opening of an office in Beijing, China. The new office is part of Xantrex's strategy to establish a strong local presence in major markets and to increase international business for the company's advanced power electronics products in the distributed, mobile, and programmable power market segments.

Ray Piontek, Area Director for the Asia Pacific Region, is overseeing the new office. "China has the greatest energy needs in the world today," said Piontek. "Xantrex will provide a breadth and depth of inverter products to help satisfy China's staggering needs for energy, while capturing a position of respect for providing value and technology leadership."

Backed by a longstanding reputation for developing high quality products and 22 years of experience serving global markets, Xantrex's Beijing office enables Xantrex to better meet the evolving needs of this strategic market.

"It's very encouraging that we've now reached a point that requires a local dedicated business development and sales team to focus on the increasing demand," said Piontek. "Xantrex is confident that customers will benefit by our expanded presence in China. Due to the tremendous interest expressed in our products thus far, we expect to rapidly increase our installed base and brand awareness in this growing market."

Xantrex already manufactures many of its products in China and has also established positive ongoing relationships in the region. The company has signed up dealers such as Beijing Corona and JK Energy, both of which are associated with government entities. By conducting product assembly and creating a dealer network in China, Xantrex is better able to leverage its outsourced manufacturing.

In March the Chinese government passed the new Renewable Energy Law - one of the largest state-sponsored commitments toward renewable energy that includes hydroelectricity, wind power, solar energy, geothermal energy and marine energy. The national renewable energy requirement is expected to boost the country's total renewable energy consumption to ten percent by the year 2020 from three percent in 2003, which Xantrex believes will create significant opportunities for its solar and wind energy products.

Rapid economic development throughout China has resulted in a significant increase in energy consumption, leading to a rise in harmful emissions and power shortages. The Renewable Energy Law is designed to help protect the environment, prevent energy shortages, and reduce dependence on imported energy.

About Xantrex
Xantrex Technology Inc. (www.xantrex.com) is a world leader in the development, manufacturing and marketing of advanced power electronic products and systems for the distributed, mobile and programmable power markets. The company's products convert raw electrical power from any central, distributed, or backup power source into high-quality power required by electronic and electrical equipment. Headquartered in Vancouver, British Columbia, the company has facilities in Arlington, Washington; Livermore, California; Elkhart, Indiana; Barcelona, Spain; Reading, England and Beijing, China. Xantrex is publicly listed on the Toronto Stock Exchange under the ticker symbol "XTX".

Note that this news release contains forward-looking statements related to Xantrex Technology Inc. Such statements reflect the current views of Xantrex with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in these forward-looking statements.

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Media contact:
Maria LoScerbo
Xantrex Technology Inc.
604.422.2589
maria.loscerbo@xantrex.com
Sales contact:
Sam Sun
Xantrex Technology Inc.
011-86-0-10-588-76991
Sam.Sun@Xantrex.com