SHEP Technologies Inc. Announces Closing Of US$500,000 Private Placement

    VANCOUVER, British Columbia--April 9, 2003--SHEP Technologies Inc. (OTCBB:STLOF) (BER:IH3) ("STI" or the "Company"), a Canadian incorporated company with operations headquartered in the UK and subsidiaries in the US and the UK, is pleased to announce the recent closing of a US$500,000 private placement with a European-based investment bank.
    The placement is for 588,235 units ("Unit") at a price of US$0.85 per Unit pursuant to Regulation S of the United States Securities Act of 1933. Each Unit is comprised of one common share, no par value and one-half of one share purchase warrant ("Warrant"). Each Warrant will entitle the subscriber to purchase one common share of the Company for a period expiring 12 months from closing, at an exercise price of US$1.25 per share. Such securities are subject to various resale or transfer restrictions, including the provision that the subscriber will not be able to resell, assign or otherwise dispose of the securities other than in accordance with all applicable securities legislation and the requirements of any exchange or over-the-counter market upon which any securities of the Company are then listed. These funds will be utilized for general working capital purposes.

    About SHEP Technologies Inc.

    SHEP Technologies Inc. acquired SHEP Limited, a corporation based in the Isle of Man with operations in Taunton, England and in the United States. SHEP Limited has designed and developed proprietary energy technology for application in the global automotive sector.
    The SHEP System, using electronics and proprietary hydraulic pump motors, captures otherwise lost kinetic energy generated during vehicle braking, and utilizes this recovered energy for vehicle acceleration during the inefficient low-speed acceleration phase. Under a controlled test environment at one of the world's largest automotive manufactures, significant fuel savings, together with reduced engine and brake wear and tear, were realized.
    The SHEP System is intended to be equally applicable to delivery, service and passenger vehicles of all sizes and variety. Optimal use of SHEP technology is anticipated in high density urban traffic environment where acceleration and braking cycles are frequent - accordingly buses, trucks, taxis and subway systems could be ideal applications.
    The Company anticipates licensing its "Stored Hydraulic Energy Propulsion" System to automotive manufacturers and their Tier 1 suppliers. Hydraulic propulsion is being embraced by OEMs in the automotive industry. In particular, SHEP components are incorporated as an integral part of one of North America's major auto producer's hydraulic power assist-equipped development vehicles.

    ON BEHALF OF THE BOARD OF DIRECTORS
    Malcolm P. Burke, President and Chief Executive Officer

    Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results. Unless otherwise noted, all financial amounts refer to US dollars.