Contract Win

7 December 2010

Turbo Power Systems Inc

("Turbo Power Systems" or "TPS")

£2 million Rail Auxiliary Convertor Order for Chiltern Railways

Turbo Power Systems, the AIM- and TSX-listed international power electronics and electrical machines company, is pleased to announce that it has won an order worth over £2 million from Chiltern Railways, the British train operating company, for the overhaul of 94 sets of Auxiliary Converter Power Rafts over the next 2 years to run rail car heating, ventilation and air-conditioning equipment as well as other auxiliary power on the train.

The equipment is based on the original Turbo Power Systems auxiliary converter design already in service with Chiltern Railways. The assemblies will be upgraded to provide enhanced reliability and power on the Class 165 DMU rolling stock. The on-board power rafts provide 3 phase 400VAC, 1 phase 220VAC, 28VDC for battery charging and a low voltage bus network.

Jim Vickerman, Interim Chief Executive Officer of TPS commented:

"We are delighted that Chiltern Railways have chosen to work with us on their Class 165 DMU's in this service support program. This contract reflects well upon our recent efforts towards offering cost competitive whole life system solutions and the continued confidence customers have in Turbo Power Systems"

About Turbo Power Systems

Turbo Power Systems Inc. (TSX:TPS.TU AIM:TPS.L) is a leading UK based designer and manufacturer of innovate power solutions to a global client base. The Group's products are based on its' core technologies of power electronics and high performance electric motors and generators targeted at the energy, industrial, transport and defence markets.

For further information, please contact:

Turbo Power Systems Inc. Tel: +44 (0)20 8564 4460

Jim Vickerman, CEO

Alan Baird, Marketing Communications

FinnCap (NOMAD, broker and financial advisor) Tel: +44 (0)20 7600 1658

Marc Young / Henrik Persson

Kreab Gavin Anderson (Financial PR) Tel: +44 (0)20 7074 1800

Ken Cronin / Michael Turner