Exhibit 99.1


                    Environmental Power Corporation
           Names New President and Chief Executive Officer


    PORTSMOUTH, N.H.--(BUSINESS WIRE)--July 3, 2003--Environmental
Power Corporation (OTCBB:POWR), a leader in the renewable energy
industry with proprietary technology to convert manure into
electricity ("EPC" or the "Company"), announced today the appointment
of Kam Tejwani as President and Chief Executive Officer of EPC. Mr.
Tejwani succeeds Joseph E. Cresci as CEO and Donald A. "Andy"
Livingston as President of EPC. Mr. Cresci will remain active in the
day-to-day affairs of EPC as Chairman of the Board of Directors and
Chairman of the Executive Management Committee. Mr. Livingston will
serve on the Executive Management Committee and will concentrate
full-time on his role as President of the Company's subsidiary,
Microgy Cogeneration Systems, Inc. ("Microgy") in order to focus on
the continued development of power projects based on Microgy's
anearobic digester technology.
    "I actively recruited Kam to become CEO of the Company because he
has considerable operations experience, a strong financial background
and has successfully built an investor-owned company in a related
field," Mr. Cresci said. "I am looking forward to working closely with
Kam to implement the Company's strategic growth initiatives. With
Kam's strengths, our energy industry experience and the exceptional
potential of our Microgy subsidiary, we believe we are poised to
capitalize on an exciting market opportunity." Mr. Cresci went on to
state, "Andy and I are fully committed to working alongside Kam in
maximizing the value of our company to shareholders."
    Mr. Tejwani has been the President of Target Capital Corporation,
a private equity firm, since May 1996. Target Capital structures and
implements investments for an offshore investment fund and assists
operating companies in maximizing shareholder value with operational
and strategic planning. From April, 1990 until December 1995, Mr.
Tejwani served as the Chairman and Chief Executive Officer of Air-Cure
Technologies, Inc., a manufacturer and marketer of air pollution
control systems. During his tenure, Mr. Tejwani managed substantial
revenue growth, completed initial and secondary public offerings,
completed the acquisition of 7 complimentary businesses and
significantly increased the company's domestic and international
market share. Previously, Mr. Tejwani worked for various small to
medium sized investment banking firms from 1983 until 1989.
    Mr. Tejwani stated, "I am very excited about the opportunity to
serve Environmental Power as its President and Chief Executive Officer
at this time in its history. I share the belief of Joe and Andy in the
great potential of the market for renewable energy systems, especially
systems like those based on Microgy's technology. I am enthusiastic
about the prospect of working closely with them to make the most of
this market opportunity."
    Mr. Tejwani continued "As corporate CEO, I will implement a growth
strategy which expands our revenues and earnings, and broadens our
product offering in the alternative energy markets. Our internal
growth strategy will build on the progress we have made to productize
our innovative biomass energy system. I am excited about the prospects
of commercializing this proven technology. Our external growth
strategy will focus on acquiring companies based on economics in other
alternative energy segments. My objective is to transform EPC into a
leading company in this arena."

    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.

    CAUTIONARY STATEMENT

    The Private Securities Litigation Reform Act of 1995 (the "Act")
provides a "safe harbor" for forward-looking statements. Certain
statements contained in this press release such as statements
concerning our seeking to realize the growth potential associated with
our anaerobic digestion systems, the deployment of animal waste-to
energy technology and other statements contained herein regarding
matters that are not historical facts are forward looking statements
as such term is defined in the Act. Because such statements involve
risks and uncertainties, actual results may differ materially from
those expressed or implied by such forward-looking statements. Factors
that could cause actual results to differ materially include, but are
not limited to, uncertainties involving development stage companies,
financing requirements and uncertainties, difficulties involved in
developing and executing on a business plan, technological
uncertainties, risks relating to managing and integrating acquired
businesses, volatile and unpredictable developments (including plant
outages and repair requirements), the difficulty of estimating
construction, development, repair and maintenance costs and
timeframes, the uncertainties involved in estimating insurance and
implied warranty recoveries, if any, the inability to predict the
course or outcome of any negotiations with parties involved with the
Company's or Microgy's projects, uncertainties relating to general
economic and industry conditions, the amount and rate of growth in
expenses, uncertainties relating to government and regulatory
policies, the legal environment, intellectual property issues, the
competitive environment in which the Company and Microgy operate and
other factors, including those described in the Company's filings with
the Securities and Exchange Commission, including the section
"Management's Discussion and Analysis of Financial Condition and
Results of Operations -- Certain Factors That May Impact Future
Results" of the Company's Quarterly Report on Form 10-Q for the period
ended March 31, 2003. Readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of
their dates. The Company undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.



    CONTACT: Investor Contact:
             Environmental Power Corporation
             R. Jeffrey Macartney, 603/431-1780 ext. 16
             jmacartney@environmentalpower.com
             or
             Media Contact:
             Environmental Power Corporation
             Brecca Loh, 603/431-1780 ext. 18
             brecca@environmentalpower.com