Exclusive Agency Agreement

1st December 2010

Turbo Power Systems Inc

("Turbo Power Systems" or "TPS" or "Company")

Exclusive Agency Agreement for Latin America

Turbo Power Systems ("TPS") the innovative power generation and conditioning equipment supplier, is pleased to announce that it has entered into an exclusive agency distribution agreement with VSE to market, promote, commercialize and sell TPS's products and services throughout Latin America. TPS does not currently make any material sales within the Latin American territory and therefore partnering with a well placed industrial technology company such as VSE is attractive to TPS. VSE operates out of Brazil and has reach across a variety of industrial sectors throughout Latin America.

Jim Vickerman, Interim Chief Executive Officer of TPS commented:

"This agency agreement is an exciting collaborative initiative with VSE and we look forward to exploring opportunities to deliver product and services across a large number of end markets with significant potential for our technologies and services."

VSE is the Parent Company of TAO Sustainable Power Solutions (UK) Limited ("Tao") which holds 75.3% of the current issued equity of TPS. As such any material contracts engaged under this agreement will likely constitute Related Party transactions as defined by the AIM Rules. 

For further information, please contact:

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

Jim Vickerman, CEO

Richard Bayliss, CFO

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