Energy  Power  Systems  Limited

                                  NEWS  RELEASE
                                  ------------


TORONTO,  JULY  30,  2002.  ENERGY  POWER  SYSTEMS  LIMITED  (AMEX:
EGY
&  Frankfurt:
EPW) (www.epsx.com) ("Energy Power" or the "Company") announces that pursuant to
      ------------
an  agreement  dated  August  10, 2000 among Energy Power, Konaseema EPS Oakwell
Power Limited ("KEOPL") and VBC Ferro Alloys Ltd., ("VBC") (the "Agreement") and
an  election by Energy Power therein, VBC is obligated to pay Energy Power a sum
of INR 113,482,000 (One hundred and thirteen million four hundred and eighty two
thousand  Indian  Rupees)  (approximately  Canadian  $3,500,000)  (the
"Consideration")  by purchasing ordinary shares of KEOPL held by Energy Power on
or  before  June  30,  2002. Energy Power believes that VBC has defaulted on its
obligation  under  the  Agreement. Accordingly, Energy Power has initiated legal
action  against  VBC  to  collect  the  Consideration.

ABOUT  ENERGY  POWER  SYSTEMS  LIMITED

Energy  Power is an integrated energy source and service company operating as an
ENGINEERING  AND  OFFSHORE  DIVISION  and  an  OIL  &  GAS  DIVISION.

There  are  approximately  10.6  million  shares  issued  and outstanding in the
capital  of  the  Company.


                                      -30-


For  further  information  contact:     Sandra  Hall,  President
                         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.