ORDER BOOK EXPANDS BY C$6.2 MILLION

Toronto,  Canada  -  August  9, 2002 - ENERGY POWER SYSTEMS LIMITED
Frankfurt  Stock Exchange: EPW) ( ("Energy Power" or the "Company")
announced  today  that  its  Engineering  &  Offshore  Division, M&M Engineering
Limited  and  M&M  Offshore  Limited  have  been  awarded  contracts  and orders
approximating  C$6.2 million with projects under development by some of Atlantic
Canada's  leading  industrial  companies,  including,  NORTH  ATLANTIC  REFINING

The contracts with North Atlantic Refining Limited include Sulphur Recovery Unit
modifications,  oil  tank  repairs  and alterations, Sootblower installation and
miscellaneous  fabrication  work to be completed at The Come By Chance Refinery.

The  project  with  Newfoundland  and  Labrador Hydro is to replace Bay D'Espoir
Surge  Tank  Heater  Piping.

The  scope  of  work to be performed for the Corner Brook Pulp and Paper 15 mega
watt  cogeneration  project will consist of labor, supervision and materials for
the fabrication, installation, flushing and hydrostatic testing of high pressure

The Company's Engineering and Offshore division is also participating in onshore
fabrication  and  maintenance  work  for  Hibernia  and  Terra Nova offshore oil

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 tank facilities
and  is  only  3  sailing  days  from  New  York.

AboutNewfoundland  and  Labrador  Hydro.

Newfoundland  and  Labrador  Hydro (Newfoundland Hydro) is the parent company of
the  Hydro  Group  of  Companies  comprising Newfoundland Hydro, Churchill Falls
(Labrador) Corporation Limited, Lower Churchill Development Corporation Limited,
Gull  Island Power Company Limited and Twin Falls Power Corporation Limited into
one  of  the fourth largest utilities in Canada in terms of installed generating
capacity. The massive underground powerhouse at Churchill Falls is rated at over
5400  MW.

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 and CBPP Woodlands
employs  approximately  800  people  in  their  harvest  operations in almost 50
Newfoundland communities, while another 200 seasonal forestry workers operate in
the  summer  and  fall.

About  Energy  Power  Systems  Limited

Energy Power is an 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.