Newsletter

June 18, 2001

Volume IV, Issue 55

Email : info@otcjournal.com
URL : http://www.otcjournal.com

To OTC Journal Members:

We had several weeks of little news, and activity is now picking up rapidly. On Friday we had exciting news from MedGrup (OTC BB: CODX), which drove the stock up 21% today.

After the market closed today we had more powerful news from another of our featured companies, Energy Power Systems LTD (OTC BB: EYPSF). Before we cover the news one brief note. Although this may be subject to change, on Wednesday after the close we will be issuing a Trading Alert on one of the most exciting situations we have ever reviewed. If you are interested in learning about a company on schedule to hit $120 million in sales (up from about $60 million last year) and on track to earn $.22 per share (up from a loss last year) trading at $1.50 stand by for Wednesday's edition.

Breaking News On Energy Power Systems LTD (OTC BB: EYPSF)

As you can easily see from the chart, Energy Power Systems LTD is prone to high volume spikes surrounding news. The last series of news releases pushed this stock up from $2 to nearly $5 in about 7 trading days.

The chart looks a lot like the chart of MedGrup we had in the weekend edition. MedGrup made a nice move off Friday's news, and there is no reason Energy Power should not follow suit.

Camped on its support line, Energy Power could be setting up for another of its meteoric runs. Today's news may be a precursor for even more exciting events to come.

Since starting coverage of the restructured company back in February, management has delivered promised results. Here are the company's accomplishments since our profile on February 10th:

February: Announced acquisition of 25% interest 1/2 million acre of oil & gas exploration property on Prince Edward Island.
February: Announced 2nd quarter results of $12.8 million in revenues and the first profitable quarter since 1996.
March: Announced its M&M division had been awarded $2.5 million construction project at the the Newfoundland Transshipment Terminal.
April: Announced acquisition of 25% ownership in producing Natural Gas property in Bigstone/Kaybob area of Alberta.
May: Announced M&M division had been awarded $3 million in new construction contracts.
May: Announced company had applied for a listing on the American Stock Exchange, the preferred exchange for small to mid sized energy companies.

Today, Energy Power took another step towards enhancing financial performance during this era of windfall profits for energy related companies. Energy Power announced it had acquired another 25% percent ownership in its Natural Gas producing property in Alberta. More importantly, within the text of the news release Energy Power indicates this announcement is a precursor to its summer drilling program. This is program represents the potential for huge upside in the stock. As we have suggested in the past, we still like this stock for the $5.50 range later this year. In this market environment investors need to own small energy stocks, and Energy Power is our contribution within the group.

Here is the complete text of the news release for your review:

NEWS RELEASE

EPS ACQUIRES AN ADDITIONAL 25% INTEREST IN SIBBALD AREA, ALBERTA

Toronto, June 18, 2001. Energy Power Systems Limited (EPS or the “Company”) (OTC BB: EYPSF) (CDNX: YPX) (www.epsx.com) is pleased to announce that it has exercised its option, effective April 1, 2001 to acquire an additional 25% average interest in certain producing oil and natural gas properties, located in the Sibbald Area of Alberta. The option was exercised pursuant to an agreement previously announced by EPS on March 26, 2001, when EPS purchased an average 25% interest in the Sibbald Property and interests ranging from 22.5%-6.25% in the Dover, Aldborough and Gosfield Areas of Ontario.

The Sibbald, Alberta Property, consists of approximately nine sections of land (approximately 5,760 acres) and currently has three producing gas wells with additional opportunities for further exploration and production recovery. Sandra Hall, Vice-President Corporate Affairs stated “The acquisition of these producing wells will increase cash flow to EPS and the additional land block should form part of our summer exploration and drilling program.”

EPS is an integrated company comprised of three operating divisions:
Oil and Gas Division, an Engineering & Offshore Division and a Power Division.
EPS issued and outstanding common shares: 5,663,419

- 30   -
For further information contact:   Sandra J. Hall, Vice-President Corporate Affairs
   Energy Power Systems Limited
   (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 borrowed or equity capital on favourable terms, and other risks detailed in the Corporation’s Form 20-F and Annual Report.

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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