RNS Number:4659T
Compact Power Holdings PLC
19 December 2003

Compact Power Holdings PLC

19 December 2003

Compact Power announces a development agreement with QinetiQ Hasler Marine
Technology, ("QinetiQ").


Compact Power, developer and proprietor of a leading-edge, environmentally
friendly waste to energy technology announces that it has entered into a
development agreement with QinetiQ, Europe's largest science and technology
organisation, to develop a waste processing facility for maritime applications.
The design will be based on Compact Power's proprietary pyrolysis and
gasification technology.



Under the terms of the agreement, Compact Power will develop a waste processing
plant on a phased basis for maritime applications. The first phase of the
project, which is currently underway and covered by a modest consultancy
arrangement, entails the feasibility analysis and preliminary design of the
systems. Dependent on the success of phase 1, phases 2 and 3 will cover the
design, construction and testing of a land based prototype and the subsequent
sea trials respectively. Trials are scheduled for completion in mid 2005.



John Acton, Chief Executive of Compact Power commented: "We are delighted to
have established this agreement with QinetiQ which not only recognises  the
advantages of pyrolysis and gasification over conventional thermal treatment,
but also underlines Compact Power's pre-eminent position in the field of
advanced thermal processing technology. Compact Power looks forward to
developing this plant, which will be ideally suited for maritime application,
but equally advantageous for many other situations with smaller waste disposal
problems such as hospitals and island resorts."



QinetiQ's Project Manager Sarah Kenny comments "QinetiQ has acknowledged the
inherent advantages of pyrolysis and gasification for some time. We are pleased
to appoint Compact Power, the only UK company capable of delivering the
expertise we sought to develop this solution.

About Compact Power

Compact Power (LSE: CPO) has developed an innovative technology based on
pyrolysis, gasification and high temperature oxidation for the safe, economic
and environmentally friendly processing of a wide range of wastes with energy

recovery. The company operates a commercial plant at Avonmouth, Bristol, which
is the only commercial pyrolysis and gasification plant operating in the UK and
the only thermal treatment plant authorised by the Environment Agency to operate
under the Integrated Pollution Prevention and Control (IPPC) regime. Compact
Power was listed on the London AIM (Alternative Investment Market) in April
2002.

For more information, visit

www.compactpower.co.uk

About QinetiQ

QinetiQ is Europe's largest science and technology organisation. The former MOD
agency has a distinguished heritage as a leading provider of technology
solutions and a supplier of impartial and trusted advice.
QinetiQ's core business is providing scientific research, test and evaluation
for military customers. In many areas the problems posed by the defence
environment require the creation of intellectual property well beyond the state
of the art in commercial markets.
QinetiQ's move into the private sector facilitates access to innovative
technologies by customers from fields as diverse as transport, health, energy
and telecommunications.
For more information, visit:

www.qinetiq.com

Contact
Nic Cooper  Chairman  +44 117 980 2900
John Acton  Chief Executive  +44 117 980 2900
Barrie Newton, Rowan Dartington, +44 117 933 0011
Sarah Kenny, QinetiQ, +44 (0) 23 92 335129
Fergus Wylie, Cubitt Consulting, +44 20 7367 5103





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