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Energy  Power  Systems  Limited

                                  NEWS RELEASE
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TORONTO,  JULY  11,  2002.  ENERGY POWER SYSTEMS LIMITED (AMEX: EGY
& Frankfurt:
EPW)  (www.epsx.com)  ("Energy  Power"  or  the  "Company")  announces  that the
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three-year  employment  contract  for  the  Company President, Mr. James Cassina
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expired  under  its  own  terms  on  June 30, 2002 and is not being renewed. Ms.
Sandra  Hall, Company Secretary and Director will now also serve as President of
Energy  Power to fill the vacancy left by Cassina and Cassina has been appointed
Chairman  of  the  Board  of  Directors.  Cassina  plans to focus his efforts on
overseeing  the Company's investments in India as well as international business
development.  The Board of Directors takes this opportunity to thank Mr. Cassina
for  his  many  years  of  service  to  the  Company  as  President  and  CEO.

ABOUT  ENERGY  POWER  SYSTEMS  LIMITED

Energy  Power is an integrated energy source and service company operating as an
ENGINEERING  AND  OFFSHORE  DIVISION  and  an  OIL  &  GAS  DIVISION.

There  are  approximately  10.6  million  shares  issued  and outstanding in the
capital  of  the  Company.

                                      -30-

For  further  information  contact:     Sandra  Hall,  President
                         Telephone:  (416)  861-1484

Certain  of  the  statements  contained in this news release are forward-looking
statements.  While  these  statements reflect the Corporation's current beliefs,
they  are  subject to uncertainties and risks that could cause actual results to
differ  materially.  These  factors  include, but are not limited to, the demand
for  the  Corporation's  products  and  services,  economic  and  competitive
conditions, access to debt or equity capital on favorable terms, and other risks
detailed  in  the  Corporation's  Form  20-F  and  Annual  Report.