Exhibit 99
Environmental Power Corporation Announces Successful Completion of
Private Placement
PORTSMOUTH, N.H.--(BUSINESS WIRE)--May 26, 2004--Environmental
Power Corporation (OTCBB: POWR), announced today that it had
successfully completed a private placement of units consisting of
shares of its common stock and common stock warrants, raising gross
proceeds of $5,640,000.
Environmental Power sold a total of 235 units at a price of
$24,000 per unit, with each unit consisting of 30,000 shares of common
stock, and three-year warrants to purchase 15,000 shares of common
stock at a purchase price of $1.10 per share. Environmental Power had
originally targeted an offering of up to 210 units. However,
Environmental Power was able to increase the size of the offering to
235 units as a result of greater than expected interest in the
offering. Westminster Securities Corporation acted as placement agent
for this private placement.
"We are pleased to announce this financing, the proceeds of which
will be used for working capital and general corporate purposes,
including fueling the growth of Environmental Power's subsidiary,
Microgy Cogeneration Systems," said Kam Tejwani, President and Chief
Executive Officer of Environmental Power. "We are particularly
gratified by the strong positive response this offering received,
which we believe to be a vote of confidence in the future of
Environmental Power and Microgy. The successful completion of this
offering positions us well to execute on the exceptional business
opportunity for the deployment of Microgy's anaerobic digester
technology that we have worked so hard to develop."
The securities underlying the units have not been registered under
the Securities Act of 1933, as amended, or state securities laws, and
may not be offered or sold in the United States absent registration
with the Securities and Exchange Commission under the Securities Act,
or an applicable exception therefrom. Environmental Power has agreed
to use its best efforts to register the shares of common stock issued
to the investors as well as the shares issuable upon exercise of the
warrants for resale under the Securities Act within 150 days of the
final closing of the private placement. If the shares and warrants
shares are not registered in a timely manner, Environmental Power will
be obligated to pay damages for the delay, in an amount equal to
one-percent per month of the aggregate amount invested, until
registered.
ABOUT ENVIRONMENTAL POWER CORPORATION
Environmental Power Corporation (OTCBB: POWR) is a leader in
resource management and energy production technologies that serve
multiple socially responsible markets. Its wholly-owned subsidiary,
Microgy Cogeneration Systems, Inc., 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. 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 projects, statements regarding sales pipeline,
backlog and revenue projections, 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 March 31, 2004, 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
Investor Contact:
Kam Tejwani, 603-431-1780
ktejwani@environmentalpower.com
or
Media Contact:
Kate Dolan, 603-431-1780
kdolan@environmentalpower.com