Newsletter

August 7, 2001

Volume IV, Issue 66

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

To OTC Journal Members:

Upcoming Audio Interviews

Tomorrow's mid-week edition will have the first in our series of audio interviews with the CEOs of our four featured companies. Jim Cassina, President and CEO of Energy Power Systems Limited will be our guest. You need to have a RealPlayer installed on your computer and speakers for sound. Click on the image to download a free version if you do not have it. For those of you without speakers there will be a written transcript in the newsletter.

One week from Wednesday we will have an interview with Bill Cronin, Chairman of MedGrup (OTC BB: CODX). This is the least volatile stock we cover with the most consistent growth and earnings performance. Please submit any questions you may have for Bill to codx@otcjournal.com.

Envoy Communications (NASDAQ: ECGI) Update

We had a nice surge in Envoy yesterday on the heels of the weekend edition. Subsequent to that publication we had the opportunity to have a lengthy conversation with Geoff Genovese, President of Envoy.

Geoff confirmed the third quarter earnings will be off a little due to several one time write downs. However, he emphasized business is very robust. Several major projects which had been in the pipeline for months began in June, and he is expecting a return to strong performance in the fiscal 4th quarter for both sales and earnings. The company's fiscal year end is the end of September, so we are in the middle of Envoy's 4th quarter right now.

We believe the market has over discounted the 3rd quarter earnings short fall, and the stock will be headed higher from here. Mr. Genovese admitted to us that the stock had virtually no following amongst US institutional investors, and the company was taking steps to correct this condition. Envoy is currently planning an institutional road show to small cap fund managers which will begin just after Labor Day.

Conclusion- Envoy is a screaming buy under $2. Mr. Genovese has agreed to be interviewed by the OTC Journal, and we will be publishing the interview on August 29th.

Major News From Energy Power Systems Limited (OTC BB: EYPSF)

In advance of tomorrow's interview with Jim Cassina, Energy Power Systems issued a press release concerning their ongoing exploration program. The press release indicates the company has obtained a larger percentage interest in their Alberta, Canada properties. This property is already generating monthly cash flow for the company from existing natural gas wells. However, an ambitious drilling program is scheduled to begin in the near future which has the potential to yield an explosive result for shareholders.

The press release also revealed the company is drilling a 1,000 meter horizontal well with a true vertical depth of 765 meters in partnership with natural gas behemoth Talisman Energy Inc, as operator in Essex County, Ontario. Here is another opportunity for a home run with this company.

We still believe Energy Power has the potential to be a $5 stock before year's end. Tomorrow's interview may help you evaluate the company's potential yourself.

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

Tuesday August 7, 2:28 pm Eastern Time
Press Release
SOURCE: Energy Power Systems

Energy Power Systems Acquires Additional Interest In Sibbald Area, Alberta
Stock-only acquisition enhances cash flow and strengthens EPS's position in resurging natural gas market

TORONTO--(BUSINESS WIRE)--Aug. 7, 2001-- Energy Power Systems Limited (OTCBB: EYPSF - news; CDNX: YPX - news; www.epsx.com; ``Energy Power'' or the ``Company'') announced today that it acquired an additional 25% average interest in certain producing oil and natural gas properties, located in the Sibbald Area of Alberta. The acquisition encompasses 2.5 sections of land, each section representing 640 acres, and one producing gas well.

According to Sandra Hall, Vice-President of Corporate Affairs of Energy Power, ``Our latest acquisition significantly increases the size and scope of our interests in the Sibbald, Alberta area. Our interests in the property now range from 37.5% to 67.5% in ten sections of land - approximately 6,400 acres. The property currently has three producing gas wells with additional opportunities for further exploration. We believe that this acquisition may considerably increase the cash flow of our Oil & Gas division.''

The purchase price of the additional 2.5 sections in Sibbald was $335,000. The acquisition was completed as a stock-only transaction and doesn't reduce Energy Power's operating capital. The acquisition was executed pursuant to a three-party property swap and property purchase effective June 30, 2001.

On July 18, 2001, Energy Power announced a multi-well exploration and development program to develop some of the Company's most promising properties in Western Canada, Southern Ontario and Eastern Canada. The program focuses initially on the Company's core producing property located in the Sibbald area of Alberta, Canada. If successful, the exploration program could potentially double current production of gas and add oil production from the property. Further seismic work and geological modeling could indicate additional drilling locations and enhance production potential.

As part of the exploration and development program, Energy Power is also participating in a spudded 1,000 metre horizontal well with a true vertical depth of 765 metres with Talisman Energy Inc., as operator in Essex County, Ontario.

About Energy Power Systems

Energy Power is a diversified energy source & service company taking advantage of the current upward trends in this critical sector. Investors, governments and industry are increasingly looking at oil and gas as an integral part of a financial plan. Some money managers are focussing on oil & gas service companies that profit from building and maintaining the huge production infrastructures, rather than just oil & gas producers whose profits fluctuate with the price of oil. With growing cash flow from its Oil & Gas Division and ongoing revenues from its Engineering & Offshore Division, EPS is positioned to perform throughout the energy cycle. The Company has approximately 6.3 million shares of common stock outstanding.

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.

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

--------------------------------------------------------------------------------
Contact:
Energy Power Systems Limited
Sandra J. Hall, 416/861-1484

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