Amended Loan Agreement

Turbo Power Systems Inc.("TPS" or the "Company")

Amended Loan Agreement

TPS, the innovative electrical machines and electronic systems provider, announces an extension to its existing loan agreement with TAO Sustainable Power Solutions (UK) Limited ("Tao") (the "Existing Debt") in order to provide support for the Company's working capital requirements as it awaits collections from certain principal debtors.

Extension Loan

TPS' wholly owned UK subsidiary, Turbo Power Systems Limited ("TPSL"), has today entered into an agreement to extend the Existing Debt provided by Tao to TPSL by a total of £0.40 million (the "Extension Loan"), bringing the total value of the TPSL's borrowings from Tao to £9.89 million. The Extension Loan will be drawn down today. Neither TPS nor TPSL have any borrowings other than those from Tao.

The Extension Loan represents an amendment to the agreement in respect of the Existing Debt and accordingly, the terms of the Extension Loan mirror those of the Existing Debt notably that it will be repayable on 1 April 2016, carries an annual interest rate of 6.0%, payable quarterly in arrears and be secured on the assets of TPSL.

Related Party Transaction

Tao holds 89.4% of the issued share capital of the Company, and is therefore a related party for the purposes of the AIM Rules for Companies ("AIM Rules"). Accordingly, the entry into the agreement with Tao as set out above constitutes a related party transaction for the purpose of the AIM Rules.

The Company's independent directors consider, having consulted with finnCap Ltd, the Company's nominated adviser, that the terms of the transaction set out above are fair and reasonable insofar as the Company's shareholders are concerned.

For further information, please contact: