Ocean Power Corporation Sigma Update

    EL DORADO HILLS, Calif.--March 27, 2001--Ocean Power Corporation (OTCBB:PWRE) is pleased to report the following news from Sigma Elektroteknisk AS, Norway. Sigma Elektroteknisk is a fully owned subsidiary of Ocean Power Corporation:

    Sigma and Ricardo start Stirling design evaluation

    Sigma announces the plans for a major design evaluation contract with USA based Ricardo, Inc. -- U.S. market will also see mCHP systems

    Sigma Elektroteknisk AS of Norway, announced their plans for a major contract with Ricardo, Inc., a U.S. subsidiary of Ricardo plc, to perform a design evaluation for meeting durability and reliability targets, and to evolve the design for manufacturing volumes for Sigma's Stirling cycle engine. The single cylinder engine will power Sigma's household size Micro Combined Heat and Power (MCHP) units.
    Unlike conventional internal combustion engines that power automobiles, lawnmowers, and other devices, the Stirling engine is an external combustion engine that heats gases outside the engine cylinder and then exchanges that heat energy to gases in the cylinder, where they convert the heat energy into mechanical energy. The MCHP system is capable of providing both heat and electricity. A connected electrical generator produces 3kW of power. Excess heat from the engine may be transferred where the heat energy is needed.
    External combustion engines have several advantages over internal combustion engines. They have fewer moving parts, require less maintenance, produce lower emissions, noise and vibration and are more efficient. The MCHP system will be marketed towards residential use and may be combined in series to manage higher energy needs in a commercial environment.
    Ricardo was founded in the early 1900's and has world headquarters in the United Kingdom. Ricardo is one of the world's foremost independent automotive and powertrain engineering consultancies. Ricardo is a leading engineering technology provider, supplying research, design and development services to the world's automotive manufacturers and their suppliers.
    Sigma is a wholly owned subsidiary of Ocean Power Corporation of El Dorado Hills, USA, and was founded in 1994 to develop the system for use in the U.K., Germany, and the Netherlands. The initial intended market remains in Europe, but is being expanded to North America.

    The above statements in regard to Ocean Power which are not purely historical are forward-looking statements including Ocean Power's beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to Ocean Power as of such date. It is important to note that actual outcome and the actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as technological, legislative and marketplace changes.