<SUBMISSION>
<ACCESSION-NUMBER>0001193125-08-060864
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20080317
<ITEMS>2.02
<ITEMS>9.01
<FILING-DATE>20080319
<DATE-OF-FILING-DATE-CHANGE>20080319
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ENVIRONMENTAL POWER CORP
<CIK>0000805012
<ASSIGNED-SIC>4991
<IRS-NUMBER>042782065
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-32393
<FILM-NUMBER>08699423
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE CATE STREET
<STREET2>4TH FLOOR
<CITY>PORTSMOUTH
<STATE>NH
<ZIP>03801
<PHONE>6034311780
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE CATE STREET
<STREET2>4TH FLOOR
<CITY>PORTSMOUTH
<STATE>NH
<ZIP>03801
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="line-height:4px;margin-top:0px;margin-bottom:2px;border-bottom:4pt solid #000000">&nbsp;</P> <P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="5"><B>UNITED STATES </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>WASHINGTON, D.C. 20549 </B></FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>FORM 8-K </B></FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:18px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="4"><B>CURRENT REPORT </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="4"><B>PURSUANT TO SECTION 13 OR 15(D) OF THE </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="4"><B>SECURITIES EXCHANGE ACT OF 1934 </B></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="3"><B>Date of report (Date of earliest event reported): March&nbsp;17, 2008 </B></FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="6"><B>ENVIRONMENTAL POWER
CORPORATION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Exact name of company as specified in its charter) </B></FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="34%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="32%"></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>Delaware</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>001-32393</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>75-3117389</B></FONT></TD></TR>
<TR>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(State or other jurisdiction</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>of incorporation)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Commission File Number)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(IRS Employer</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="1"><B>Identification Number)</B></FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>One Cate Street, Fourth Floor, Portsmouth, New Hampshire 03801 </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Address of principal executive offices, including zip code) </B></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="3"><B>(603) 431-1780 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Company&#146;s telephone number, including area code) </B></FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>NONE </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Former name or former
address, if changed since last report) </B></FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the Company under any of the following provisions: </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="94%"></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</FONT></TD></TR>
</TABLE> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:4px;margin-top:0px;margin-bottom:2px;border-bottom:4pt solid #000000">&nbsp;</P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">


<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM&nbsp;2.02</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>&#150; RESULTS OF OPERATIONS AND FINANCIAL CONDITION </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">On March&nbsp;17, 2008, Environmental Power Corporation (the &#147;Company&#148;) issued a press release reporting its financial results for the year ended December&nbsp;31, 2007 and providing a business update. A copy of this press release
is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein, except for the references to the Management Conference Call and the replay thereof, which are not incorporated by reference herein and shall not
be deemed to be filed or furnished as a part of this Current Report </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The information in this Item&nbsp;2.02 and the press release attached
as an exhibit to this Current Report on Form 8-K shall not be deemed &#147;filed&#148; for purposes of Section&nbsp;18 of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), or otherwise subject to the liabilities of that
section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing. </FONT></P> <P
STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="9%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM&nbsp;9.01</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>&#150; FINANCIAL STATEMENTS AND EXHIBITS </B></FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(d)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Exhibits </FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">99.1</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Press release, dated March&nbsp;17, 2008. </FONT></TD></TR></TABLE> <P STYLE="font-size:36px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="margin-top:18px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SIGNATURES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px; margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2">ENVIRONMENTAL POWER CORPORATION </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P
STYLE="margin-top:18px;margin-bottom:0px; margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2">By:&nbsp;&nbsp;<U>/s/&nbsp;&nbsp;&nbsp;&nbsp;Michael E.
Thomas&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael E. Thomas </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President, Chief Financial </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:54%; text-indent:-2%"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Officer and Treasurer </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Dated: March&nbsp;18, 2008 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>dex991.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<HTML><HEAD>
<TITLE>Press Release</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 99.1 </B></FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="5"><B>Environmental Power Announces </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="5"><B>2007 Annual Results and Provides Business Update </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Monday March&nbsp;17, 8:30 am ET </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">PORTSMOUTH, N.H., March&nbsp;17
/PRNewswire-FirstCall/ &#151; Environmental Power Corporation (Nasdaq: EPG or the &#147;Company&#148;) today announced results for the year ended December&nbsp;31, 2007. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><B>Business Commentary </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Environmental Power&#146;s progress
during the last six months has proven that its business model can address the market demands for domestic, renewable supplies of energy. We achieved commercial operation of the largest renewable natural gas (RNG<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT>) facility of its kind in the world thereby reconfirming the unique role of our technology and approach to providing pipeline grade methane. Further, we are poised to begin the rollout of our pipeline of projects with
our Nebraska and Texas projects followed closely by the California portfolio. The Company sees market conditions continuing to improve for our offering with increased prices for natural gas, which forms the baseline for our renewable natural gas
contracts, as well as increased demand, and therefore prices, for greenhouse gas offset credits which we generate as part of our process. Our goals are to maintain our first mover status in the biogas market, continue to execute on our identified
project pipeline of 4.9&nbsp;million MMBtu of annual generation and finalize the development of the 6.8&nbsp;million MMBtu of projects under various earlier stages of development. We are also fortunate that the nature of our projects allows us to
utilize a tax- exempt financing model which we anticipate will not be materially impacted by current market concerns affecting other forms of tax-exempt financing. Overall, the Company is well positioned for growth and will continue to focus on both
the construction of our announced projects and identifying additional project opportunities throughout North America. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Financial Results </B></FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">For the year ended December&nbsp;31, 2007, we had a net loss applicable to common shareholders of $18.9 million, or loss applicable per common share of $1.66, compared
to net loss applicable to common shareholders of $18.4 million, or loss per common share of $1.91, for the year ended December&nbsp;31, 2006. The increase in net loss applicable to common shareholders was primarily attributable to a $3.5 million
increase in loss from discontinued operations, and an increase in preferred dividend requirements of $1.2 million. These changes were partially offset by a decrease in the amortization of the beneficial conversion feature associated with our series
A preferred stock offering in November, 2006 of $4.1 million, and a $915,000 increase in other income. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">We have one continuing business segment, Microgy.
The results of operations for this business segment, which is presented as continuing operations, as well as our discontinued operations, consisting of the results of our Buzzard subsidiary, are discussed below. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">A complete presentation of the Annual Results and the Management&#146;s Discussion and Analysis is included in the Annual Report on Form 10K that is being filed today
with the Securities and Exchange Commission and will be available on the Company&#146;s website. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Continuing Operations </B></FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Revenues from continuing operations decreased by $1.04 million, or 47%, to $1,175,000 for the year ended December&nbsp;31, 2007, as compared to $2.2 million for the year
ended December&nbsp;31, 2006. This decrease in revenue is due mainly to the change from a business model where we sell facilities to third parties, to the current ownership model, where we build, own, and operate facilities for our own account.
Revenues from the operation and maintenance of facilities increased to $1,175,000 for the year ended December&nbsp;31, 2007, compared to $825,000 for the year ended December&nbsp;31, 2006. The increase in operations and maintenance revenue in the
year ended December&nbsp;31, 2007 is a result of the three Wisconsin facilities being fully operational in 2007 as compared to 2006, when only two facilities were fully operational. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Our cost of goods sold decreased to $942,000 for the year ended December&nbsp;31, 2007 as compared to $2.1 million for
the year ended December&nbsp;31, 2006. This decrease is due primarily to the shift in emphasis from a sales model to an ownership model. In the year ended December&nbsp;31, 2007, we did not recognize any expenses from the construction of facilities.
In the year ended December&nbsp;31, 2006, $812,000 of the $2.1 million in costs of revenue was related to the construction of electric generating facilities constructed for sale to Dairyland. Operations and maintenance costs decreased from $1.3
million in the year ended December&nbsp;31, 2006 to $942,000 in the year ended December&nbsp;31, 2007, due primarily to lower repair and maintenance costs at the Wisconsin facilities. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">General and administrative expenses from continuing operations increased by $1.2 million to $12.4 million for the year ended December&nbsp;31, 2007, as compared to $11.2 million for in the year ended December&nbsp;31,
2006. This increase was primarily due to a $762,000 increase in non-cash compensation expense and a $1.5 million increase in payroll related expenses, including severance. These increases were partially offset by a $992,000 decrease in professional
service expenses. In the year ended December&nbsp;31, 2007, we recognized $2.8 million of non-cash compensation expenses due primarily to the FAS 123R treatment of options and stock appreciation rights granted to employees, as compared to non-cash
compensation expense of $2.0 million in the year ended December&nbsp;31, 2006. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">We experienced an increase in preferred security dividend requirements
related to our series A 9% cumulative convertible preferred stock issued in November, 2006, from $193,000 for the year ended December&nbsp;31, 2006, to $1.3 million for the year ended December&nbsp;31, 2007, representing dividends either accrued or
paid in the year ended December&nbsp;31, 2007. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The foregoing expenses were offset in part by other income of $1.4 million for the year ended
December&nbsp;31, 2007, compared to other income of $439,000 for the year ended December&nbsp;31, 2006. The increase in other income is primarily due to the expiration of the statute of limitations regarding potential liability related to the
Sunnyside project, and the resulting release of a reserve therefore (in the amount of $583,000). Additionally, interest income increased by $335,000 to $783,000 in the twelve months ended December&nbsp;31, 2007, primarily as a result of a higher
average cash balance due to the common stock offering. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Discontinued Operations </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">In accordance with previous announcements, on February&nbsp;29, 2008, Buzzard Power Corporation, a wholly owned subsidiary of Environmental Power, completed an agreement with Scrubgrass Generating Company, L.P., to
terminate Buzzard&#146;s leasehold interest in the Scrubgrass waste coal facility. The Company will recognize a benefit of $6.0 million for accounting purposes to reflect forgiveness of debt and recognition of deferred gain associated with the
facility during the first quarter of 2008. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">We experienced a pre-tax loss from discontinued operations of $6.2 million for the year ended December&nbsp;31,
2007, compared to a $2.7 million pre-tax loss for the year ended December&nbsp;31, 2006. This increase in pre-tax loss is primarily due to an increase in operating expenses of $3.1 million, and a $177,000 increase in other expenses. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Business Update </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Huckabay Ridge Commercial Operations
</I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">On January&nbsp;22, 2008, the Company announced that the Huckabay Ridge facility achieved
full-capacity production levels of pipeline-quality renewable natural gas (RNG<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>) and had moved into full-scale commercial operation. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">&#147;The Huckabay Ridge project is operating well following our announcement of achieving commercial operations in January,&#148; said Richard Kessel, President and CEO
of Environmental Power. &#147;All performance tests have been successfully completed and we are already engaged in evaluating several operational improvements to further enhance performance. I don&#146;t think we can overstate the importance of
achieving full capacity at the largest project of its kind in the world, for our customers and our shareholders.&#148; </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>Grand Island Project in Construction </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">On December&nbsp;11, 2007, the Company held a groundbreaking ceremony for its biogas plant at the JBS Swift beef processing facility in Grand Island, Nebraska. The Microgy Grand Island Biogas Facility will generate
biogas to offset a portion of JBS Swift&#146;s natural gas consumption and will improve that plant&#146;s waste management practices. Environmental Power&#146;s subsidiary Microgy, Inc. will construct, own and operate the renewable energy production
facility and sell its biogas to JBS Swift pursuant to a 15-year purchase agreement. At capacity, the facility is expected to generate 235,000 MMBtu per year. The Benham Companies, LLC of St. Louis, Missouri has been selected to provide design and
construction services for the project and construction is proceeding on schedule with biogas deliveries to JBS Swift expected to begin in October, 2008 and ramp up to through the end of the year. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Microgy, Inc. has submitted an application for volume-cap allocation to the Nebraska Investment Finance Authority (NIFA) in support of the issuance of up to $7 million
of tax exempt bonds to provide debt financing for the facility. The tax exempt bonds will be issued under the jurisdiction of the City of Grand Island, Nebraska which has already approved an intent resolution. The application is expected to be
considered during NIFA&#146;s March&nbsp;28 meeting. The Company anticipates approval of the tax-exempt financing by the end of April and financial closing in June, 2008. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><I>Texas Permitting and Construction </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">Progress continues in the
build out of the Company&#146;s announced Texas portfolio. The Company has entered into an agreement with MWH Constructors to finalize design and initiate procurement of equipment for the Cnossen and Rio Leche projects. The Company intends to move
forward with these two projects with the objective of maintaining a target in-service date for these projects of the first quarter of 2009. The third announced project, known as Mission, remains subject to further evaluation of feedstock and
off-take arrangements. The Company is in late-stage discussions for another similarly sized RNG<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> project in Texas that could be initiated ahead of the Mission project but no final decisions
have been made at this time. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">&#147;As I have consistently said we would do, we are moving ahead with the projects in Texas where we know we can deliver on
the expectations of our bondholders and shareholders,&#148; said Rich Kessel. &#147;We need a little more time to determine the most profitable path regarding the next Texas project but we are working hard to ensure that the work completed by MWH
for Cnossen and Rio Leche can be directly leveraged for the next project, thereby minimizing any delays.&#148; </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><I>California Permitting and Financing </I>
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">The Company has obtained necessary operating permits and environmental approvals for most of its
proposed projects in California. With regard to the Riverdale Cluster, a project involving anaerobic digesters at three adjacent dairies with a combined expected output of 550,000 MMBtu/year of RNG<FONT FACE="Times New Roman"
SIZE="1"><SUP>&reg;</SUP></FONT>, all required permits have been issued by state and local authorities and all opportunities for appeal have expired. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">With regard to the Hanford Cluster, a project involving three dairies with a combined expected output of 605,000
MMBtu/year of RNG<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, conditional use and air permits have been issued by local and state authorities. Further, the California Regional Water Quality Control Board (CRWQCB) unanimously
approved the issuance of water discharge permits for this project. The Company fully expects these permits to be issued next month. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT
FACE="Times New Roman" SIZE="2">With regard to the Bar 20 project, which has an expected output of 570,000 MMBtu/year of RNG<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT>, there is a series of permits pending for a dairy expansion as
well as for our anaerobic digester project. The conditional use permit for the Bar 20 project and the environmental review of the project were completed and issued by Fresno County in February. The air permit for the digester project was issued for
30-day public comment by the San Joaquin Air Pollution Control District (SJAPCD) and no comments were received. The water permit was issued for 30-day public comment by the CRWQCB and no comments were received. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">SJAPCD, which is the local authority responsible for the environmental review of the dairy expansion, recently decided to
recirculate for a 30-day comment period, the environmental, or &#147;CEQA,&#148; document specifically related to the dairy expansion. Since both the CRWQCB and the SJAPCD must await the completion and issuance of the CEQA document specifically
related to the dairy expansion before either agency can issue the air or water permits, the earliest that the SJAPCD can issue the pending air permit for the digester project is approximately April&nbsp;15, 2008, and the earliest that the CRWQCB can
issue the pending water permit is at its April&nbsp;24, 2008 business meeting. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">There has been no change regarding the permitting status of the Gallo-
Columbard project. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">&#147;We have all the permits in hand to proceed with the Riverdale project in California and with the actions by the Air Quality
Control District and the Water Pollution Control Board last week, we will have all the permits needed to commence construction of the Hanford project shortly,&#148; said Rich Kessel. &#147;As many of you know, this is a significant milestone and
there have been many in the industry who thought that we could not be successful in permitting co-digestion projects in California. However, with the hard work of numerous local and state permitting officials and a lot of perseverance by our staff,
we have set an important precedent and template that will benefit all the projects that come next.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The Company has decided to submit an application
for an allocation of tax-exempt bond financing in California to support the construction of the Riverdale and Hanford projects. We anticipate that the application will be submitted before the end of March. With the permits for Riverdale in hand, and
the expectation that we will have all final permits for Hanford shortly following the recent CRWQCB action, we have initiated geotechnical and design work at these facilities. The Company will be ready to ramp up construction activities once the
allocation is made. The Company expects this to occur at the end of May 2008, which is somewhat later than had been expected when we had given earlier guidance as to the in service date of the Hanford and Riverdale projects. We are hopeful that we
will be able to submit a separate application quickly for the Bar 20 project if the SJAPCD and CRWQCB are able to issue the permits for the Bar 20 project in April. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2"><I>Other Development Projects </I></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">With regard to the previously announced Cargill project in Colorado, we continue to work
on securing off-take and feedstock arrangements. Once these are secured, we will announce our expected construction schedule. In Idaho, progress on the Cargill project has slowed because of a potential ownership change at the dairy. We continue to
pursue off-take arrangements while monitoring the situation with the dairy. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">In addition to the projects described above, the Company has additional
projects under consideration that are at earlier stages of development. Projects in this category have an expected annual production of approximately 6.8&nbsp;million MMBtu/year. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px;padding-bottom:3px;line-Height:95%; vertical-align:top"><FONT FACE="Times New Roman" SIZE="2">&#147;We are very pleased with the progress made at the end of the year with the Huckabay and Grand Island
projects,&#148; said Rich Kessel. &#147;Improvements in the outlook in price and demand for natural gas along with increased interest in RNG<FONT FACE="Times New Roman" SIZE="1"><SUP>&reg;</SUP></FONT> at premium prices from numerous parties give us
more options than we have had in the past. The market for greenhouse gas offsets also continues to strengthen and we have seen prices of over $5 per metric ton on the Chicago Climate Exchange and higher for recent bi-lateral transactions for methane
offsets. At the same time, I am certainly sensitive to investor concerns regarding any delay in the previously announced construction schedule, and while we will do what we can do to make up time, we now believe that we will be bringing most of our
announced portfolio of projects on line during the first and second quarters of 2009 and expect to achieve our targeted $40 million of annualized revenue run rate by July of 2009.&#148; </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>Management Conference Call </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Mr.&nbsp;Richard Kessel, Chief Executive Officer, and Mr.&nbsp;Michael Thomas, Chief Financial Officer, will comment on these and related items and will also answer questions from interested investors in the Conference Call scheduled for
Monday, March&nbsp;17, 2007, at 10 a.m. EDT. Conference Call details: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="24%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="24%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="24%"></TD>
<TD VALIGN="bottom" WIDTH="5%"></TD>
<TD WIDTH="13%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Dial-in:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">U.S. Toll Free:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">800-391-2548</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Canadian Toll Free:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">866-627-1646</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">International Toll:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">302-709-8328</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Access Code:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Verbal Passcode</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">VK77210</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Replay Access#:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">800-355-2355</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Replay Passcode:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">77210#</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The call will be available for 3 business days by accessing the number above after which it will be available on
our website <U>www.environmentalpower.com</U> </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>ABOUT ENVIRONMENTAL POWER CORPORATION </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">Environmental Power Corporation is a developer, owner and operator of renewable energy production facilities. Its principal operating subsidiary, Microgy, Inc., holds an exclusive license in North America for the
development and deployment of a proprietary anaerobic digestion technology for the extraction of methane gas from livestock wastes and other organic waste for its use to generate energy. For more information visit the Company&#146;s web site at
<U>www.environmentalpower.com.</U> </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B>CAUTIONARY STATEMENT </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">The Private Securities Litigation Reform Act of 1995, referred to as the PSLRA, provides a &#147;safe harbor&#148; for forward-looking statements. Certain statements contained in this press release, such as statements concerning planned
manure-to-energy systems, our sales pipeline, our backlog, our projected sales and financial performance, statements containing the words &#147;may,&#148; &#147;assumes,&#148; &#147;forecasts,&#148; &#147;positions,&#148; &#147;predicts,&#148;
&#147;strategy,&#148; &#147;will,&#148; &#147;expects,&#148; &#147;estimates,&#148; &#147;anticipates,&#148; &#147;believes,&#148; &#147;projects,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;budgets,&#148; &#147;potential,&#148;
&#147;continue,&#148; &#147;targets&#148; &#147;proposed,&#148; and variations thereof, and other statements contained in this press release regarding matters that are not historical facts are forward-looking statements as such term is defined in
the PSLRA. 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; uncertainties regarding project financing, the lack of binding commitments and/or the need to negotiate and execute definitive agreements for the construction and financing of
projects, the sale of project output, the supply of substrate and other requirements and for other matters; financing and cash flow requirements and uncertainties; inexperience with the development of multi-digester projects; risks relating to
fluctuations in the price of commodity fuels like natural gas, and our inexperience with managing such risks; difficulties involved in developing and executing a business plan; difficulties and uncertainties regarding acquisitions; technological
uncertainties; including those relating to competing products and technologies; risks relating to managing and integrating acquired businesses; 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; the inability to predict the course or outcome of any negotiations with parties
involved with our projects; uncertainties relating to general economic and industry conditions, and the amount and rate of growth in expenses; uncertainties relating to government and regulatory policies and the legal environment; uncertainties
relating to the availability of tax credits, deductions, rebates and similar incentives; intellectual property issues; the competitive environment in which Environmental Power Corporation and its subsidiaries operate and other factors, including
those described in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, well as in other filings we make with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date that they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="84%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="36%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="28%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="28%"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>CONTACT:</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Company Contact</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Investor&nbsp;Relations&nbsp;Contact</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Mark Hall, Senior Vice President</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Jeff Berman</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">Environmental&nbsp;Power&nbsp;Corporation</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Ricochet Public Relations</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">(630) 573-2926</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">(212) 679-3300 x126</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><U>mhall@environmentalpower.com</U></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2"><U>jberman@ricochetpr.com</U></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
</TABLE>
</BODY></HTML>
</TEXT>
</DOCUMENT>
</SUBMISSION>
