News Release Details

Company signs landmark agreement to advance the development of £42 million wave energy project in Cornwall, England

Pennington, NJ – July 15, 2009 -- Ocean Power Technologies Limited (“OPT” or the “Company”), a wholly-owned subsidiary of Ocean Power Technologies, Inc. (London Stock Exchange AIM: OPT and Nasdaq: OPTT) yesterday signed a Commitment Agreement (“Agreement”) with the South West Regional Development Agency (“South West RDA”) to advance the development of Wave Hub, one of world’s largest proposed renewable marine energy projects.  

The agreement reaffirms OPT’s long-standing involvement with Wave Hub since it was envisioned in 2005 and serves to support the Company’s expected efforts to build a demonstration wave power station at the site, about 17 kilometres off the coast of St Ives, Cornwall, England.

OPT’s commitment coincides with the South West RDA’s announcement today of the formal UK government go-ahead for the Wave Hub project as part of a £100 million investment package aimed at establishing the South West England region as the UK’s first low carbon economic area and a major global centre for the wave power industry. Of these funds, £42 million has been earmarked for Wave Hub, including for the construction of offshore berths and a sub-sea cable to deliver electricity to the National Grid. In addition, the project has received the full support of the UK government as part of its Low Carbon Industrial Strategy unveiled separately today by Lord Mandelson, UK Secretary of State for Business, Innovation and Skills.   

The Company’s expected participation in the Wave Hub project includes plans to build, install and operate a wave power station comprised of its patented PowerBuoy systems generating up to 5MW of electricity – equivalent to the energy needs of approximately 1,750 homes annually. Following completion of the project infrastructure by the South West RDA, OPT plans to deploy its systems in a phased roll-out. The Company anticipates working with commercial partners which will invest with OPT in the project, and that such combined commitment to development of the project will result in the generation of a significant number of jobs in the UK.

Angus Norman, Chief Executive of OPT, said: “OPT has provided strong support to Wave Hub and the South West region’s vision to create a world-class centre for the marine energy industry over the past five years. As a result, we are proud to be the first to sign a Commitment Agreement to make this project a commercial reality. With major new funding and final approval today, Wave Hub is sure to become a global showcase for wave power technology and means that it is now gaining momentum as a viable source of renewable energy.”

Wave Hub is expected to generate up to 20MW of renewable energy, and can potentially be scaled up to 50MW in the future. Wave Hub will be a giant grid-connected socket, into which wave energy device developers will connect their products and carry out testing on a scale not seen before. The project infrastructure is expected by the South West RDA to become operational in 2010. An independent economic impact assessment, commissioned by the South West RDA, has calculated the project could create 1,800 jobs and inject £560 million into the UK economy over 25 years. Almost 1,000 of these jobs and £332 million could be generated in South West England.

Stephen Peacock, Executive Director of Enterprise and Innovation at the South West RDA, said: “This is an exciting time for Wave Hub and we are very proud that the South West of England is set to be at the forefront of the world’s marine energy industry. OPT has shared our vision from the outset and we look forward to continued partnership and the benefits their world-leading expertise will bring to the South West economy.”
  

Forward-Looking Statements

This release may contain "forward-looking statements" that are within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company's current expectations about its future plans and performance, including statements concerning the impact of marketing strategies, new product introductions and innovation, deliveries of product, sales, earnings and margins. These forward-looking statements rely on a number of assumptions and estimates which could be inaccurate and which are subject to risks and uncertainties. Actual results could vary materially from those anticipated or expressed in any forward-looking statement made by the Company. Please refer to the Company's most recent Form 10-K for a further discussion of these risks and uncertainties. The Company disclaims any obligation or intent to update the forward-looking statements in order to reflect events or circumstances after the date of this release.

About Ocean Power Technologies

Ocean Power Technologies is a pioneer in wave-energy technology that harnesses ocean wave resources to generate reliable, clean, and environmentally-beneficial electricity. OPT has a strong track record in harnessing wave energy and participates in a $150 billion annual power generation equipment market. The Company's proprietary PowerBuoy® system is based on modular, ocean-going buoys that capture and convert predictable wave energy into low-cost, clean electricity. The Company is widely recognized as a leading developer of on-grid and autonomous wave-energy generation systems, benefiting from over a decade of in-ocean experience. OPT’s technology and systems are insured by Lloyds Underwriters of London. OPT has offices in Warwick, UK and Pennington, NJ. More information can be found at www.oceanpowertechnologies.com.

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