                                                                    Exhibit 99.1

Environmental Power Corporation Completes Holding Company Reorganization

    PORTSMOUTH, N.H.--(BUSINESS WIRE)--June 2, 2003--Environmental
Power Corporation (OTCBB: POWR) (the "Company") announced today that
it has undergone a reorganization under Section 251(g) of the General
Corporation Law of the State of Delaware, effective today. As a result
of the reorganization, the Company has been renamed EPC Corporation,
and a newly created Delaware corporation owns 100 % of the Company.
Stockholders of the Company have automatically become stockholders of
the new corporation, which is also named Environmental Power
Corporation (the "Parent Company").
    The new holding company organizational structure will allow
Environmental Power to manage its organization more effectively and to
enjoy greater flexibility with respect to future operational and
financing activities.
    The reorganization was structured in a manner under Delaware law
that did not require action by the Company's stockholders, whose
rights, privileges and interests will remain the same with respect to
the Parent Company. Existing certificates representing shares of the
Company's common stock serve as evidence of ownership of the same
number of shares of common stock of the new Parent Company,
Environmental Power Corporation; an exchange of certificates is not
required. The change to the holding company structure was tax free to
the Company's stockholders. The by-laws, executive officers and board
of directors of the Parent Company are the same as those of the
Company immediately prior to the reorganization. The Parent Company's
common stock will trade on the OTC Bulletin Board under the same
ticker symbol, "POWR".
    Environmental Power Corporation is an entrepreneurial energy
company established in 1982 with annual revenues in excess of $50
million. The company focuses on environmentally sound power generation
and anaerobic digestion systems.
    Environmental Power is targeting its proposed anaerobic digestions
systems to animal feeding operations in the U.S. with an estimated
initial target market of approximately $6.7 billion and estimates
initial and expanded market potential to exceed $14 billion. For more
information visit the company's web site at
www.environmentalpower.com.

    CAUTIONARY STATEMENT

    The Private Securities Litigation Reform Act of 1995 (the "Act")
provides a "safe harbor" for forward-looking statements. Certain
statements contained in this press release such as statements
concerning the new holding company organizational structure allowing
greater flexibility with respect to future operational and financing
activities; estimated market potential for the proposed anaerobic
digestion systems and other statements contained herein regarding
matters that are not historical facts are forward looking statements
as such term is defined in the Act. Because such statements involve
risks and uncertainties, actual results may differ materially from
those expressed or implied by such forward-looking statements. Factors
that could cause actual results to differ materially include, but are
not limited to uncertainties involving development stage companies,
financing requirements and uncertainties, difficulties involved in
developing and executing on a business plan, technological
uncertainties, volatile and unpredictable developments (including
plant outages and repair requirements), the difficulty of estimating
construction, development, repair and maintenance costs and
timeframes, the uncertainties involved in estimating insurance and
implied warranty recoveries, if any, uncertainties relating to general
economic and industry conditions, the amount and rate of growth in
expenses, uncertainties relating to government and regulatory
policies, the legal environment, intellectual property issues, the
competitive environment in which Environmental Power Corporation and
EPC Corporation operate and other factors, including those described
in the Company's filings with the Securities and Exchange Commission,
including the section ``Management's Discussion and Analysis of
Financial Condition and Results of Operations -- Certain Factors That
May Impact Future Results'' of POWR's Quarterly Report on Form 10-Q
for the period ended April 30, 2002. Readers are cautioned not to
place undue reliance on these forward-looking statements, which speak
only as of their dates. POWR undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.

    For more information, please contact:
    jmacartney@environmentalpower.com
    www.environmentalpower.com

    CONTACT: Environmental Power Corporation
             Investor Contact:
             R. Jeffrey Macartney, 603/431-1780
             Chief Financial Officer and Treasurer
             jmacartney@environmentalpower.com
             or
             Media Contact:
             Brecca Loh,  603/431-1780 ext. 18
             Media Relations
             brecca@environmentalpower.com

