Exhibit 99

    Environmental Power Corporation's Microgy Subsidiary Announces
          Signing of Fifth Farm; Backlog Now at $12 Million

    PORTSMOUTH, N.H.--(BUSINESS WIRE)--Feb. 25, 2004--Environmental
Power Corporation (OTCBB: POWR), announced that its subsidiary,
Microgy Cogeneration Systems, Inc., had executed an agreement pursuant
to which Bach Farms, LLC will purchase a Microgy digester system to
process manure produced by its dairy operations in Dorchester,
Wisconsin. With five farms now having agreed to adopt Microgy's highly
efficient anaerobic digestion technology, Microgy has established a
backlog of $12 million in sales from documented transactions since
late December 2003.
    Environmental Power is a leader in resource management and energy
production technologies that serve multiple socially responsible
markets. Microgy owns a license to a proprietary technology to convert
manure and food industry wastes into biogas, providing a waste
management solution with the potential to pay for itself by producing
renewable energy and other residual products valuable to farmers and
growers.
    Like the earlier agreements, the Bach Farms agreement is part of
Microgy's continuing efforts under its relationship with Dairyland
Power Cooperative. The Dairyland Board of Directors has approved the
Bach Farms project. Microgy's agreement with Bach Farms also provides
Microgy with the right to operate and maintain the digester for the
duration of its operational life.
    Andy Livingston, Microgy's President, stated, "The execution of
the agreement with Bach Farms represents further success in Microgy's
business development efforts and demonstrates both the growing
acceptance of our technology and the increased desire for the benefits
it offers. We are very pleased with the enthusiastic reception our
technology has received to date, and we are confident that this
enthusiasm will continue as we continue our marketing efforts."

    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. 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 planned manure-to-energy systems, our sales pipeline, our
backlog, our projected sales and financial performance, statements
containing the words "expects," "estimates," "anticipates,"
"believes," "projects" and variations thereof, and other statements
contained in this press release 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,
uncertainties regarding project financing, the lack of binding
commitments and the need to negotiate and execute definitive
agreements for the construction and financing of projects, financing
and cash flow requirements and uncertainties, difficulties involved in
developing and executing on a business plan, difficulties and
uncertainties regarding acquisitions, technological uncertainties,
risks relating to managing and integrating acquired businesses,
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 Environmental Power'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 Environmental Power and Microgy operate and other
factors, including those described in the Company's Quarterly Report
on Form 10-Q for the quarter ended September 30, 2003, as well as
other filings with the Securities and Exchange Commission. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date that they are made.
Environmental Power undertakes no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.

    CONTACT: Environmental Power Corporation
             Investor Contact:
             Kam Tejwani, 603-431-1780
             ktejwani@environmentalpower.com
             or
             Media Contact:
             Kate Dolan, 603-431-1780
             kdolan@environmentalpower.com