Ocean Power Signs $38MM Purchase Agreement for Home Power Units

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FOR IMMEDIATE RELEASE

Ocean Power Signs $38MM Purchase Agreement for Home Power Units

CALIFORNIA, EL DORADO HILLS, May. 6 -/E-Wire/-- Ocean Power Corporation (OTCBB:PWRE), Ocean Power Corporation is pleased to announce that it has signed an agreement establishing the conditions for sale of 10,000 3-kilowatt, Home Power Units (HPU), with a private real estate management company currently operating a portfolio of approximately 15,000 apartments. The HPU, which utilizes a Stirling engine is designed for use in multi-family apartment complexes and will be used to generate electricity, hot water and HVAC on-site. Ocean Power's HPU will provide environmental benefits by utilizing the (waste) heat from the unit to significantly increase overall system efficiency.

The systems will be installed in apartments during the normal rehabilitation process. The systems are sized so that after fulfilling tenants' needs they will provide excess electricity that will be available for sale to the grid. Ocean Power will participate with the management company in the on-going profits generated from the power sale, thereby building a recurring revenue base.

The average sale price for the first 10,000 units will be approximately $3,800 per unit. Delivery of the units will begin upon completion by Ocean Power of performance and code compliance certification, and installation is planned for completion by the end of 2005.

In addition to this order, the management company has entered into negotiations with Ocean Power for the exclusive marketing and distribution rights for multi-family dwellings in the United States. The U.S. multi-family dwelling market totals more than 20 million units.

"Clearly, the move toward decentralized power generation is the wave of the present", said Ocean Power's President Joseph Maceda. "Our Stirling HPU will be a commercially viable distributed generation product. The introduction of this product into the marketplace is a major step for Ocean Power in particular and distributed generation in general".

Ocean Power is currently in discussions with other firms for the sale of the HPUs into the single family home market in the US and the single and multi-family markets in Europe, Asia, Canada, and Latin America.

This order is subject to certain conditions, including the execution of definitive agreements approved by the respective Boards of Directors.

Forward looking statements and comments in this press release are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements. Such statements are necessarily subject to risks and uncertainties, some of which are significant in scope and nature beyond the Company's control. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance.

Ocean Power's President, Joseph Maceda will be interviewed for a WebCast on CEOCast and available of Tuesday May 7th. Mr. Maceda will discuss in more detail the opportunities accompanying this HPU order. Check the company's web site for details.

Ocean Power, Investor Relations,

Blair Aiken, [REDACTED-PHONE]

http://www.powerco.com

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