Toronto, February 19, 2002. Energy Power Systems
Limited (OTC BB: EYPSF & Frankfurt Stock Exchange: EPW)
( ("Energy Power" or the "Company")
announces that holders of 400,000 Series II Preferred
Shares in the capital of the Company have recently
exercised their conversion rights and acquired 320,000
common shares and 320,000 common share purchase
warrants. The holders subsequently exercised the common
share purchase warrants at CDN $1.50 each for proceeds
to the Company of CDN $480,000. There are no remaining
Series II Preferred Shares.

Energy Power plans to use the proceeds from the
exercise of warrants in part to fund its ongoing oil
and gas exploration program and for general working
capital purposes.

About Energy Power Systems Limited

Energy Power is an integrated energy source and service
company operating as an Engineering & Offshore Division
and an Oil & Gas Division.

There are approximately 10.1 million shares issued and
outstanding in the capital of the Company.


For further information contact:		Sandra J. Hall
					VP Corporate Affairs
					Telephone: (416) 861-1484

Certain of the statements contained in this news
release are forward-looking statements.  While these
statements reflect the Corporation's current beliefs,
they are subject to uncertainties and risks that could
cause actual results to differ materially.  These
factors include, but are not limited to, the demand for
the Corporation's products and services, economic and
competitive conditions, access to debt or equity
capital on favorable terms, and other risks detailed in
the Corporation's Form 20-F and Annual Report.