PORTSMOUTH, N.H., June 12 /PRNewswire-FirstCall/ -- Environmental Power Corporation (Amex: EPG), a leader in the renewable biofuels industry, today announced that its subsidiary Microgy, Inc., is developing its third large-scale, pipeline-quality renewable natural gas (RNG) production facility in Texas. The facility, located in Dublin, TX, will be owned and operated by Microgy. Together with the Huckabay Ridge project currently in construction, and the Mission Dairy project currently in development, this project is expected to increase Microgy's estimated annual production of refined RNG to approximately 2 billion cubic feet annually upon completion of these facilities.

The Rio Leche facility will be Microgy's third planned facility to implement its standardized, large-scale 8-digester design, and will closely resemble the company's Huckabay Ridge facility in construction in nearby Stephenville, Texas. Like Huckabay Ridge, Rio Leche will be sited at a compost yard and will process the waste from approximately 10,000 dairy cattle, as well as other food industry waste. Once completed, Rio Leche is expected to generate an estimated 650,000 MCF of pipeline-grade RNG annually (enough to heat approximately 11,000 homes), which will be cleaned, compressed, and delivered directly to a natural gas pipeline.

Environmental Power has acquired the site for the Rio Leche facility and has reached an agreement with Producers' Compost, which operates the compost yard at the Huckabay facility, to operate the compost yard at Rio Leche. The Rio Leche facility is now entering the permitting stage.

Huckabay Ridge, the company's first such facility, is in construction and is scheduled to begin commissioning this summer, with the facility expected to be fully operational this fall. The Mission project, the company's second large-scale RNG facility, located in Hereford, TX, has received its air permits, clearing the way for commencement of construction activities.

"The planned Rio Leche facility demonstrates our commitment to a strategy of responsible development intended to increase our RNG reserves across Texas, one of the most important cattle regions in the country," said Kam Tejwani, CEO of Environmental Power. "With our modular digester design and a relatively untapped market, we continue to explore more locations that will offer us an opportunity to produce cost-effective, pipeline-grade, renewable natural gas."

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; 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

Kam Tejwani, CEO of Environmental Power Corporation

(603) 431-1780

ktejwani@environmentalpower.com</ A>

jabrashkin@ricochetpr.com

Investor Relations Contact:

John Baldissera, BPC Financial Marketing

1-800-368-1217

SOURCE Environmental Power Corporation