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Environmental Power Corporation's Microgy, Inc. Subsidiary Signs Letter of Intent With Swift & Company to Develop Waste-to-Energy Facility at Grand Island, Nebraska Beef Plant

Posted on: Tuesday, 7 March 2006, 09:02 CST

PORTSMOUTH, N.H., March 7 /PRNewswire-FirstCall/ -- Environmental Power Corporation today announced that its wholly-owned subsidiary, Microgy, Inc. has entered into a Letter of Intent (the "Agreement") with Swift & Company, the world's second-largest processor of fresh beef and pork products.

The Agreement provides that Microgy and Swift & Company intend to construct a biogas production facility at Swift's Grand Island, Nebraska beef processing plant that will utilize Microgy's anaerobic digestion technology to extract methane-rich biogas from animal wastes, meat processing wastes and certain wastewater plant residual streams that would otherwise be landfilled or land applied. In addition to the initial biogas project in Grand Island, both parties will cooperate to identify, evaluate and develop projects at Swift's seven other beef and pork production facilities throughout North America.

Swift and Microgy intend to complete the negotiations for a long-term biogas purchase and supply commitment for the Grand Island processing plant as well as a long-term lease for the location of the biogas production facility to be owned and operated by Microgy. With respect to each additional project that the parties agree to develop, Microgy will provide all necessary designs and engineering to construct the biogas production facilities, and will own, operate and maintain the facilities.

Kam Tejwani, President and Chief Executive Officer of Environmental Power, commented, "We are truly excited about the opportunity to collaborate with a major, multinational firm such as Swift, to help them reduce costs and also make a positive impact on the environment in their communities through the construction and operation of major renewable energy projects within their plant network."

Sam Rovit, President and Chief Executive Officer of Swift & Company, commented, "Today's announcement reflects our commitment to operational excellence and to the environment as we pursue our vision of becoming the best red meat provider in the world. The Microgy facility is expected to deliver Swift a cost-effective source of fuel while simultaneously reducing the volume of plant processing byproducts."

Randy Hull, President of Microgy, added, "We believe that there is the potential to recover energy values in excess of about 1,200,000 MMBTU's per year from multiple digesters within Swift's network of eight beef and pork processing plants and that this demonstrates the capability of anaerobic technology to generate significant amounts of energy from waste materials. That's equivalent to over 25,000 barrels per day of heating oil, and, as a result, projects like this have the potential to greatly reduce our dependence on imported hydrocarbons, whether they be oil or liquefied natural gas. We look forward to exceeding Swift's expectations with the initial project at their world class facility in Grand Island."

The Company will host a conference call on Tuesday, March 7th at 2:00 p.m. Eastern Time (ET) during which management will discuss this information and be available to answer questions from participants. Participation details are as follows:

What: Environmental Power Conference Call When: Tuesday, March 7th at 2:00 p.m. Eastern Time (ET) Please call in approximately 15 minutes early Dial-in: 800-391-2548 Access Code: VM725539 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/.

ABOUT SWIFT AND COMPANY

With nearly $10 billion in annual sales, Swift & Company is the world's second-largest processor of fresh beef and pork. Founded in 1855 and headquartered in Greeley, Colorado, Swift processes, prepares, packages, markets, and delivers fresh, further processed and value-added beef and pork products to customers in the United States and international markets. For more information, please visit http://www.swiftbrands.com/.

CAUTIONARY STATEMENT BY ENVIRONMENTAL POWER

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, 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, 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.

CONTACTS Kam Tejwani of Environmental Power Corporation, +1-603-431-1780 ktejwani@environmentalpower.com; or Investor Relations, John Baldissera of BPC Financial Marketing for Environmental Power Corporation, 1-800-368-1217 Swift & Company Sean McHugh Vice President, Investor Relations and Communications (970) 506-7490 sean.mchugh@swiftbrands.com

Environmental Power Corporation

CONTACT: Kam Tejwani of Environmental Power Corporation,+1-603-431-1780, ktejwani@environmentalpower.com; or Investor Relations, JohnBaldissera of BPC Financial Marketing for Environmental Power Corporation,+1-800-368-1217; or Sean McHugh, Vice President, Investor Relations andCommunications of Swift & Company, +1-970-506-7490,sean.mchugh@swiftbrands.com

Web site: http://www.environmentalpower.com/

Source: PRNewswire-FirstCall

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