Electro Power Systems: Success of the Increase in Share Capital by Means of Private Placement Eps Raises an Amount of 4,77 Millions Euros

Regulatory News:

Electro Power Systems (Paris:EPS) (« EPS », listed on Euronext Paris: EPS.PA), technology pioneer of clean energy storage systems (the "Company”), today announces the final terms and conditions of its increase in share capital by means of a private placement to institutional investors.

EPS placed 701.500 new shares, each with a nominal value of 0.20€, at a subscription price of 6,80 euros per share, issue premium included. The total amount subscribed is 4.770.200 euros, representing 9,77% of the share capital of the Company before the increase in share capital and a dilution of 8,90% for the existing shareholders.

On an illustrative basis, a shareholder holding 1% of the share capital of EPS before to the increase in share capital will now hold a stake of 0,911% after the transaction.

The subscription price of the new shares represented a discount of 4,2% compared to the weighted average of the closing prices of the EPS shares during the last three trading days preceding the determination of the price, i.e. on December 1^st, 2^nd and 3^rd.

The net proceeds of the Private Placement shall be used by EPS for general corporate purposes and further expansion of the Group in the system integration business to accelerate growth.

Intermonte has acted as Placement Agent and Société Générale Securities Services, as EPS’s registrar.

The settlement-delivery and the admission of the new shares on Euronext Paris (on the same line of the Company’s existing shares (ISIN FR0012650166)) are expected to take place on 8 December 2015.

Following the settlement-delivery of the private placement, the share capital of the Company will be composed of 7.881.807 shares.

Carlalberto Guglielminotti, Managing Director of EPS, commented: « The success of this placement despite the volatile market conditions is a very important step for the growth of the Electro Power Systems group, and confirms the continous support of the market to our development strategy ».

The transaction has not been subject to a prospectus to be approved by the French Financial Market Authority (Autorité des marchés financiers - AMF). Detailed information on EPS, including its business, results, perspectives and related risk factors appear in the Company’s Prospectus d’admission registered by the AMF on 7 April 2015 under number 15-0142, which is available together with all the press releases and other regulated information about the Company, at the Company’s website (www.electropowersystems.com).

About Electro Power Systems

Founded in 2005 as spin-off of the Politecnico of Turin (Italy) and pioneer of hydrogen technologies, Electro Power Systems (EPS) today operates in the sustainable energy sector and specializes in integrated energy storage solutions and systems. The main areas of focus of the Group are integrated solutions for energy and backup applications in the ICT and data center industry, grid support in countries with heavy penetration of renewables sources, and off-grid power generation in emerging economies. In a nutshell, clean energy storage solutions, at a lower cost, with no need for subsidies.

EPS is today listed on the French regulated market of Euronext, with headquarters in Paris, R&D and Manufacturing in Italy (Turin) and premises in the USA (California and Michigan). In 2010 EPS started the development of the first oxygen and hydrogen battery worldwide, a system able to store massive amounts of energy at a cost lower than any other solution in the market. This innovative technology, covered by 123 patents and patents applications worldwide, is able to store energy exploiting exclusively the water cycle, without any emission or toxic or heavy metals. Since 2012 the product has been pre-commercialized and so far EPS has installed in aggregate 579 systems, 31.7 MWh of energy stored in 18 countries worldwide, including Europe, USA, Australia, China, Indonesia, India and South Africa.

The Group led by Carlalberto Guglielminotti as CEO, supported by Luca Dal Fabbro, Giuseppe Artizzu and Ilaria Rosso, is a global organization which counts 61 human resources between Europe, South Africa, USA and Singapore, of which 37 people involved in research and development projects.

The huge effort in R&D enabled the development of a unique technology, covered by patents in 48 countries worldwide, granting to the Group the possibility to be named "World Technology Pioneer” by the World Economic Forum, included in the 100 Cleantech Global by the Cleantech Group but also selected between the worldwide excellences by the Cleantech Forum in San Francisco and Rotterdam.

To enhance the phase of development and global commercialization, the Group has successfully completed in April 2015, with the support of Société Génerale as Global Coordinator, the Initial Public Offering of its shares on the regulated market Euronext Paris with a market capitalization of Euro 52 million euros.

For more information electropowersystems.com

Disclaimer

This press release is for information purposes only and the information contained herein do not, and shall not, in any circumstances, constitute a public offering by EPS nor an offer to sell or a solicitation of an offer to buy or subscribe to shares in EPS in any jurisdiction, including France and Italy.

This press release does not constitute or form part of an offer or solicitation of an offer to buy or subscribe for securities in France. The securities referred to herein may not be and will not be offered or sold to the public in France.

This announcement is not a prospectus within the meaning of Directive 2003/71/EC of the European Parliament and the Council of November 4th, 2003, as amended, in particular by Directive 2010/73/UE (together, the "Prospectus Directive").

With respect to the member states of the European Economic Area which have implemented the Prospectus Directive (each, a "Relevant Member State"), no action has been undertaken or will be undertaken to make an offer to the public of the securities referred to herein requiring the publication of a prospectus in any Relevant Member State. As a result, the securities may not and will not be offered in any Relevant Member State except in accordance with the exemptions set forth in Article 3(2) of the Prospectus Directive, or under any other circumstances which do not require the publication by EPS of a prospectus pursuant to Article 3 of the Prospectus Directive and/or to applicable regulations of that Relevant Member State.

This document does not constitute an offer to the public in France and the securities referred to in this document can only be offered or sold in France pursuant to article L. 411-2-II of the French Monetary and Financial Code to (i) providers of third party portfolio management investment services, (ii) qualified investors (investisseurs qualifiés) acting for their own account and/or (iii) a limited group of investors (cercle restreint d’investisseurs) acting for their own account, all as defined in and in accordance with articles L. 411-1, L. 411-2 and D. 411-1 to D. 411-4 and D. 754-1 and D. 764-1 of the French Monetary and Financial Code.

The accelerated bookbuilt offering is exclusively reserved to "Qualified Investors” (as defined in Consob Regulation n. 11971 of 14 May 1999, as subsequently amended) and foreign institutional investors (including US qualified institutional buyers, as defined in, pursuant to and in accordance with Rule 144A of the US Securities Act of 1933, as amended).

This press release is not an offer of securities for sale in the United States or any other jurisdiction. Securities may not be sold or offered in the United States unless they are registered or are exempt from the registration requirements of the U.S. Securities Act of 1933, as amended. EPS does not intend to register any portion of this offering in the United States or to conduct a public offering of securities in the United States.

In the United Kingdom, this press release is only being distributed to, and is only directed at, persons that (i) are "investment professionals” (falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Order"), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations, etc.") of the Order, or (iii) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons"). In the United Kingdom, this press release is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this press release relates is available only to relevant persons and will be engaged in only with relevant persons.

The distribution of this document in certain countries may constitute a breach of applicable law. The persons in possession of this announcement shall then get knowledge of any local restrictions and shall comply with these restrictions.

The information contained in this document does not constitute an offer of securities for sale in the United States, Canada, Australia or Japan.

It may be unlawful to distribute this press release in certain jurisdictions. This press release is not for distribution in the United States, Canada, Australia or Japan.

This press release shall not be circulated, published, or distributed, directly or indirectly, in or to the United States of America, Canada, Australia or Japan.

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