News Release

Energy Power System's Engineering & Offshore Division
Order Book Expands By C$3.5 Million in March

Toronto, Canada - March 27, 2002 - Energy Power Systems
Limited (OTC BB: EYPSF & Frankfurt Stock Exchange: EPW)
( ("Energy Power" or the "Company") announced
today that it's Engineering & Offshore Division has been
awarded contracts and orders approximating C$3.5 million
with infrastructure projects under development by some of
Atlantic Canada's leading industrial companies, including,
Newfoundland Power Inc., Corner Brook Pulp and Paper Limited
and North Atlantic Refining Ltd. (NARL) of Newfoundland.

The project with Newfoundland Power is to fabricate and
supply a penstock for the Seal Cove Hydroelectric
Development project. The project will require approximately
40 tradespeople and is expected to be completed by August

The project for Corner Brook Pulp and Paper consists of
rebuilding the power boiler by adding a superheater,
attemperator, sweet water condenser, soot blowers and
associated equipment to produce high pressure steam. The
superheated steam will be sent to a new turbo-generator set
to produce an additional 15 mega watts of electrical power
for Corner Brook Pulp and Paper Limited. New deaerator,
boiler feed pumps, demineralization system and polishers
will also be supplied.  The scope of work to be performed by
the Engineering & Offshore Division is the supply and
installation of high pressure piping for the boiler rebuild
and turbo generator installation.

The contract for North Atlantic Refining Ltd. is for an
alteration and repair to an existing oil tank. The project
consists of the installation of an 8 foot base ring, the
installation of a wind girder and tank repair and

About Newfoundland Power Inc.

Newfoundland Power and its predecessor companies have been
engaged in the production and sale of electricity since
1885. Newfoundland Power, a regulated investor owned
electric utility and serves approximately 172,000 customers
throughout the island portion of the province of
Newfoundland and Labrador.
About Corner Brook Pulp and Paper

Corner Brook Pulp and Paper Limited is a vital force in the
economy of western Newfoundland. Construction of the mill
began in 1923 with the first paper produced in 1925. The
Company employs approximately 700 people at the mill located
in Corner Brook and the Deer Lake Power Company. CBPP
Woodlands employs 800 employees in their harvest operations
in almost 50 Newfoundland communities, while another 200
seasonal forestry workers operate in the summer and fall.

- 2 -

About North Atlantic Refining Ltd. (NARL)

NARL operates the 105,000 barrels per day Refinery at Come-
By-Chance, Newfoundland. The strategic location on the main
North Atlantic shipping route allows NARL to bring crude oil
from overseas and new offshore oil fields in Atlantic Canada
and ship refined petroleum products anywhere in the world.
NARL holds the largest refinery dock in North America with
extensive tankage facilities and is only 3 sailing days from
New York.

Scott Hargreaves, CFO of Energy Power stated,  "Each of
these customers are leading companies in their respective
industries and are clients regularly serviced by the
Engineering and Offshore Division. It is a credit to the
quality of work performed by the company that the high
profile developers of Atlantic Canada's infrastructure
repeatedly turn to the Engineering and Offshore Division to
participate in their construction projects."

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 10.5 million shares issued and
outstanding in the capital of the Company.

    For further information contact:
    Scott T. Hargreaves, CA, CFA
    Chief Financial Officer
    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.