Grant of options

25 June 2010

Turbo Power Systems Inc

("TPS" or the "Company")

Grant of Options to Directors and Senior Management

Following the receipt of shareholder approval at the Company's Annual General Meeting on 14 June 2010, and further to the details contained in the circular to shareholders dated 20 May 2010, on 24 June 2010 the Company issued 70,000,000 share options to certain directors and senior management (the "Replacement Options"). The Replacement Options, representing 3.6% of the fully diluted common shares of the Company, have been issued in consideration for those directors and senior managers agreeing to the cancellation of 19,470,000 outstanding stock options held by them. The Company now has a total of 75,840,000 options outstanding.

The number of Replacement Options granted, and the resultant holdings of directors and persons discharging management responsibilities are shown below:

The Replacement Options are exercisable at a price of 1.125 pence per share (CD$0.017) (being the volume weighted average trading price of the shares on the Toronto Stock Exchange for the five previous trading days) and vest as follows:

- 25% of the Replacement Options become exerciseable on 14 June 2013, and

- 75% of the Replacement Options become exerciseable in equal instalments on 31 December of each of the three forthcoming financial years (commencing with the year ended 31 December 2011) subject to the fulfilment by that individual of certain performance criteria. The criteria are set on an annual basis by the remuneration sub-committee of the Company's board of directors. Should an executive not meet the criteria for a certain year, the criteria will be retested at the end of the subsequent financial year, after which such allocation will expire.

The Replacement Options, and any rights of exercise, will expire on 14 June 2020.

For further information, please contact:

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

Richard Bayliss

FinnCap Tel: +44 (0)20 7600 1658

Marc Young

Henrik Persson