Ehxhibit 99.2

Environmental Power Corporation Announces Appointment of Vitale,
Caturano & Company as Principal Independent Auditors

    PORTSMOUTH, N.H.--(BUSINESS WIRE)--June 7, 2004--

    Deloitte & Touche to Continue Providing Tax Services

    Environmental Power Corporation (OTCBB: POWR), announced today
that it had engaged the firm of Vitale, Caturano & Company PC, New
England's largest regional accounting firm, as its principal
independent auditors. Deloitte & Touche LLP, Environmental Power's
previous auditors, which informed Environmenal Power on June 1, 2004
that the client-auditor relationship had ceased, will continue to
provide the company and its subsidiary, Microgy Cogeneration Systems,
Inc., with tax advice and related services. Environmental Power noted
that there have been no disagreements between it and Deloitte & Touche
on any matter of accounting principles or practices, financial
statement disclosure or auditing scope or procedure.
    The appointment of Vitale, Caturano & Company as principal
independent auditors was approved by the Audit Committee of
Environmental Power's Board of Directors, but remains subject to the
consent of lenders to and certain other business partners of
Environmental Power and its subsidiaries.
    "We are very pleased that Vitale, Caturano & Company, a firm that
has successfully provided numerous services to Environmental Power in
recent years, will be our independent auditors. Vitale, Caturano is a
strong firm with the resources to handle all of our financial
accounting and audit needs while providing the kind of personal
attention and cost-effectiveness a growing business like ours
requires," stated R. Jeffrey Macartney, Environmental Power's Chief
Financial Officer. "Likewise, we are pleased to continue our
long-standing relationship with Deloitte & Touche by having that firm
focus its considerable resources, expertise and national reach on the
tax needs of Environmental Power and Microgy, especially as Microgy's
business expands both in size and geographic scope."

    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 most recent Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q, 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
             Investors:
             Kam Tejwani, 603-431-1780
             ktejwani@environmentalpower.com
             or
             Media:
             Kate Dolan, 603-431-1780
             kdolan@environmentalpower.com