Company to Host Management Conference Call on Tuesday, March 27th PORTSMOUTH, N.H., March 22 /PRNewswire-FirstCall/ -- Environmental Power is releasing the following information and comments of its President and Chief Executive Officer, Richard Kessel, regarding the Company and its wholly-owned subsidiary, Microgy, Inc. ("Microgy"), to provide an update of the company's various initiatives. Rich Kessel stated: "Environmental Power is committed to periodic updates intended to keep our stakeholders abreast of progress as we pursue our goal of being a leader in the renewable energy and carbon credit sectors. Toward that end, we will announce year-end 2006 results after the close of business on Monday, March 26th, and will host a business update conference call the morning of March 27th. The call will include a question and answer session. Details regarding the conference call are set forth below. "At this time I would like to provide a brief update on several items of particular interest, as well as share some exciting new developments with you. We have continued to make progress in building our pipeline of projects and advancing our financing initiatives, and are in the final stages of bringing our Huckabay Ridge facility into commercial operation. "We are completing our work at our flagship Huckabay Ridge facility, with construction essentially completed on all eight of the digesters, and we continue to expect the facility to be fully operational this spring. Over the past several months we have produced biogas from six of the tanks at full design capacity, run those digesters and the gas conditioning plant in tandem, produced pipeline quality gas, had the gas sampled and analyzed, and received approval to export the conditioned gas via the pipeline. We are proceeding through the various stages of the start-up process and expect initial deliveries of gas to the pipeline in the near future. All the while we continue to remain fully focused on the important goal of achieving commercial operation of the entire facility. "As we roll out our modular design in future projects we will greatly benefit from our experience with the start-up of the Huckabay Ridge facility, including incorporating changes into our standardized design which we believe will improve the efficiency of our project development efforts. With respect to the California RNG facilities under development---the RNG from which will be purchased by Pacific Gas & Electric Company---we are finalizing our permit applications and expect to submit those shortly, have begun engineering activities and are working with PG&E to arrange pipeline interconnection. "We also have been moving forward with our inside-the-fence facilities. At Gallo-Columbard (California) we have received the required air permit and conditional use permit, and expect to finalize the water permit---the final remaining item---shortly. We are also working with Swift in connection with the Grand Island, Nebraska facility, and are finalizing engineering and design requirements. "Further, we have been very active on the business development front. Cargill is working aggressively with us to develop new facilities, and together we are pursuing projects in Utah, Idaho, Texas and Minnesota. In addition, Microgy is also in advanced discussions with farms and feedlots in California and in the southwest region regarding the development of additional sizeable RNG facilities. "In February, management determined that it was far enough along with development of our California projects---six contracted and five more in advanced discussions---that we applied for and have received an inducement from the California Statewide Communities Development Authority for the issuance of $150 million of municipal tax-exempt bonds. We intend to seek an allocation from the California Debt Limit Allocation Committee in order to complete a financing with Ziegler Capital Markets, the underwriter of our Texas offering, in the 2007 cycle. The process is expected to follow the template created by Ziegler and used successfully for our California projects. "Finally, we have also taken significant steps towards our goal of becoming a significant player in the market for carbon credits. Microgy has become a participant member of the Chicago Climate Exchange and has received independent certification of the credits generated from its Wisconsin projects. We believe more strongly than ever that we are well positioned to become a significant player in the market for carbon credits. These credits are expected to increase in value as a binding cap and trade system evolves in the U.S. As states such as California institute carbon emissions cap and trade systems, industries such as utilities whose operations result in carbon emissions above their permitted amounts will be required to purchase carbon credits generated from sources such as Environmental Power in order to continue operating. "In closing, please know that we appreciate your support as we pursue our goal of being a leader in the renewable energy and carbon credit sectors. We are recognized as the leader in our field, are well-positioned for accelerating growth in a wide-open market. I am proud to be a member of the Environmental Power team at this exciting time in the company's history, and look forward to communicating more details about our progress later this month." Conference Call Details Environmental Power Corporation will issue fourth quarter and full year 2006 financial results after the close of business on March 26th. The company will host a business update conference call at 8:30 a.m. Eastern Time on March 27th in order to allow investors greater visibility into the company's business, strategies and prospects. A question-and-answer session will follow. Participation details are provided below. What: Environmental Power Business Update Conference Call When: 8:30 a.m. Eastern Time; March 27th, 2007 Dial-in: 800-391-2548 Access Code: VK62835 The replay will be available following the conference call via the Environmental Power website (http://www.environmentalpower.com/). ABOUT ENVIRONMENTAL POWER CORPORATION Environmental Power Corporation is a developer, owner and operator of renewable energy production facilities. Its principal operating subsidiary, Microgy, Inc., holds an exclusive license in North America for the development and deployment of a proprietary anaerobic digestion technology for the extraction of methane gas from animal wastes for its use to generate energy. For more information visit the Company's web site at http://www.environmentalpower.com/. CAUTIONARY STATEMENT The Private Securities Litigation Reform Act of 1995, referred to as the PSLRA, 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 "may," "assumes," "forecasts," "positions," "predicts," "strategy," "will," "expects," "estimates," "anticipates," "believes," "projects," "intends," "plans," "budgets," "potential," "continue," "targets" "proposed," 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 PSLRA. 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/or the need to negotiate and execute definitive agreements for the construction and financing of projects, the sale of project output, the supply of substrate and other requirements and for other matters; financing and cash flow requirements and uncertainties; inexperience with the development of multi-digester projects; risks relating to fluctuations in the price of commodity fuels like natural gas, and our inexperience with managing such risks; uncertainties regarding the development of the market for carbon credits and other environmental attributes; difficulties involved in developing and executing a business plan; difficulties and uncertainties regarding acquisitions; technological uncertainties; including those relating to competing products and technologies; 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 our projects; uncertainties relating to general economic and industry conditions, and the amount and rate of growth in expenses; uncertainties relating to government and regulatory policies and the legal environment; uncertainties relating to the availability of tax credits, deductions, rebates and similar incentives; intellectual property issues; the competitive environment in which Environmental Power Corporation and its subsidiaries operate and other factors, including those described in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, well as in other filings we make 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. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. CONTACT Rich Kessel, President and CEO of Environmental Power Corporation (603) 431-1780 Public Relations Contact: John Abrashkin, Ricochet Public Relations (212) 679-3300 x121 Investor Relations Contact: John Baldissera, BPC Financial Marketing 1-800-368-1217 DATASOURCE: Environmental Power Corporation CONTACT: Rich Kessel, President and CEO of Environmental Power Corporation, +1-603-431-1780, , or Public Relations Contact: John Abrashkin of Ricochet Public Relations, +1-212-679- 3300, Ext. 121, ; or Investor Relations Contact: John Baldissera of BPC Financial Marketing, +1-800-368-1217 Web site: http://www.environmentalpower.com/

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