New Customer Contract

Turbo Power Systems Inc

("TPS" or the "Company")

New Customer Contract

TPS, the innovative high-speed electrical machines and power electronic systems provider, is pleased to announce that it has been selected by UK Power Networks to supply a ground-breaking new design of electrical energy controller for trials on the electricity distribution networks in the London and Brighton areas. This contract is the Company's first in the exciting low carbon initiatives market, and the Company is optimistic of securing further contracts.

The project is part of UK Power Networks Flexible Urban Networks Low Voltage (FUN-LV) project and will trial the innovative use of power electronics devices on low voltage distribution networks. It is a Low Carbon Network Fund (LCNF) Tier 2 project that was awarded by the Office of the Gas and Electricity Markets (Ofgem). More information about UK Power Networks innovation projects can be found at ukpowernetworks.co.uk/innovation

The increasing occurrence of low carbon technologies connecting to the electricity network, as a consequence of the planned transition to a low carbon economy, is increasing the load on low voltage (LV) distribution networks.

TPS's electrical energy controller connects the LV feeders from multiple substations to leverage inherently available grid capacity and optimise electricity flows. Based on loading profiles, capacity sharing at peak load times is achieved by allowing the transfer of power between substations as well as from one electrical phase to another within the same substation. This is expected to enable low carbon technologies to be accommodated through existing substations, reducing the requirement for additional infrastructure.

Carlos Neves, Chief Executive Officer, said:

"Electrical substations form an important part of the national grid, providing an interface between the medium voltage electrical delivery system and the safe voltages distributed to domestic and industrial users. Turbo Power Systems' new design of electrical energy controller optimises the use of existing network capacity to accommodate increased loadings for renewable energy generation, whilst additionally supporting the addition of new homes and offices within the capacity of installed networks."

Notes to Editors

Electrical substations form an important part of the national grid, providing an interface between the medium voltage electrical delivery system and the safe voltages distributed to domestic and industrial users. [Network reinforcements are being applied to back up the existing transformers within the substations.] TPS is adapting the design of its high power grid linked inverters to allow the transfer of power between substations as well as from one electrical phase to another within the same substation. This enables a balance of loading on the substations, supporting even distribution.

The result of this local network reinforcement scheme will allow electricity consumers to enjoy a higher quality of supply with fewer glitches and less distortion in the 230V mains supply inside their premises. The local network reinforcement will also allow for the faster connection of new consumers to the network without the need to build additional distribution substations, which can take up to two years.

TPS were the first company in the United Kingdom to implement a fully qualified G59 photovoltaic grid linked inverter onto the UK electricity network. Since then it has been active in developing and refining this technology and extending it to other areas such distributed generation and energy recovery applications.

UK Power Networks distributes more than a quarter of the UK's electricity through its networks of substations, underground cables and overhead lines making sure the lights stay on across London, the South East and the East of England.

The company's 5,200 employees are dedicated to delivering a safe, secure electricity supply to 8.1 million homes and businesses regardless of who they pay their energy bills to.

The industry regulator Ofgem sets an allowed revenue to distribution companies so that they can maintain safe and reliable electricity supplies.

UK Power Networks invests more than £500 million in its electricity networks every year and is also undertaking trials to ensure that electricity networks support the transition to a low carbon future. It also maintains and upgrades power equipment, and moves and connects new electricity cables.

If customers are unfortunate enough to be affected by a power cut or have another issue with the electricity supply to their property, they should contact UK Power Networks.

www.ukpowernetworks.co.uk

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