Italian Agreement signed

Compact Power Holdings PLC
09 March 2007


For immediate release                                              9 March 2007

                           Compact Power Holdings plc

                   Compact Power agrees Italian collaboration

Compact Power, the Bristol based energy from waste technology company, is
pleased to announce that a collaboration agreement has been signed with Daneco
S.p.A of Italy.

Under the terms of this agreement Daneco will have the exclusive rights to
promote, develop and manage projects in the municipal waste sector in Italy.
Daneco is already one of the largest operators in this sector and has the
capability, in conjunction with Compact Power, to design, build, own and operate
waste processing facilities in Italy. Daneco is part of the Waste Italia group
of companies, the largest privately owned waste management group in Italy.

John Acton, Chief Executive of Compact Power commented:

"Daneco is an ideal partner for us and this collaboration has the potential to
see Compact Power technology playing a significant role in Italian waste
management. Daneco already has a strong and respected presence in this market
and the fact that it has chosen Compact Power technology for some of its future
projects is a major endorsement for us."

Enrico Bruschi, Managing Director of Daneco, added:

"Our agreement with Compact Power is a key step forward in the implementation
of our business strategy.  Daneco can now offer a unique portfolio of advanced
modern waste treatment technologies which offer a total, integrated,
environmentally sound and cost effective solution to the issue of municipal
waste management in Italy."


Notes to editors

About Compact Power

Compact Power (LSE: CPO) a company listed on The London Stock Exchange (AIM) has
developed an innovative technology based on pyrolysis, gasification and high
temperature oxidation for the safe, economic and environmentally friendly
processing of a wide range of wastes and biomass with energy recovery. The
company operates a commercial plant at Avonmouth, Bristol.

For more information, visit www.compactpower.co.uk


About Daneco S.p.A

Daneco S.p.A is a subsidiary company of Gruppo Waste Italia. The company's
activities include the design construction and operation of:

Waste recycling facilities, wet/dry sorting facilities, landfill, landfill gas
to energy, and energy from waste plant


Contacts

Compact Power
John Acton - Chief Executive
Richard Hogg - Business Development Director
Tel: [phone]


Daneco S.p.A
Ing. Stefano Zannier - Waste to Energy Unit Manager
Via Bensi 12/5
20152 Milano
Italy
Tel: [phone]

Corporate Synergy
Barrie Newton
Tel: [phone]

Winningtons Financial
Paul Vann/Ken Rees
Tel: [phone]



                      This information is provided by RNS
            The company news service from the London Stock Exchange

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