Environmental Power Corp. subsidiary and Dairyland Power Cooperative sign agreement

Microgy Cogeneration Systems Inc. has signed an agreement with Dairyland Power Cooperative to build waste-to-energy systems on dairy and swine farms in the Midwest.


Manure will produce up to 25 MW of electricity


Portsmouth, NH, March 11, 2003 -- Environmental Power Corp., through its subsidiary Microgy Cogeneration Systems Inc. has executed a Letter of Intent with Dairyland Power Cooperative to create a strategic alliance to deploy animal waste to energy systems on dairy and swine farms in Dairyland's service territory in the Midwest.

These proposed systems will produce up to 25 MW of renewable distributed generation capacity and be based on Microgy's proprietary anaerobic digestion technology that processes and controls animal waste from dairy and swine farm operations.

The biogas produced from the digesters will be purchased by Dairyland for its use in generating clean, renewable energy. Dairyland serves a five state region through member cooperatives in Wisconsin, Minnesota, Iowa, Illinois and Michigan.

Dan Eastman, Vice President of Business Development for Microgy stated: "Our proposed strategic alliance with Dairyland will enable numerous farms to lessen their impact on the environment, respond to new Environmental Protection Agency pollution regulations for Concentrated Animal Feeding Operations (CAFOs) and profit from the production of renewable energy.

Dairyland will enjoy many years of reasonably priced renewable electricity to serve its expanding customer base and fulfill its commitment to preserving and protecting the quality of our environment."

"Environmental Power believes that this strategic alliance with Dairyland will serve as a model for other regions in America where the environment, the farmers and electric consumers can all gain solid benefits by working together to be good stewards of the earth in a manner which makes economic sense."

Environmental Power, through Microgy, holds the exclusive North American license for a highly efficient anaerobic digestion technology that produces renewable energy by converting polluting waste resources from agricultural sites into clean, cost effective fuel. The Company's technology has operated successfully for more than 15 years at over 25 facilities in Europe. Environmental Power currently has a number of projects soon to begin construction in Wisconsin, Vermont and New York.

Dairyland, one of the largest generation and transportation cooperatives in the Midwest, provides wholesale electric power to 25 distribution cooperatives and 20 municipal electric systems. The Cooperative is committed to preserving and protecting the quality of the environment by expanding its renewable energy portfolio. The use of methane gas from anaerobic digestion is part of this long term plan.

About Environmental Power Corporation

Environmental Power Corporation (OTCBB: POWR) 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.

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