JV with QinetiQ

RNS Number:9849E
Compact Power Holdings PLC
22 June 2006


For Immediate Release                                             22 June 2006


     QinetiQ and Compact Power team up to supply waste system for HMS Ocean


Compact Power is pleased to announce that an agreement has been signed with
QinetiQ that will see the two companies tendering for the supply of a waste
management system for the Royal Navy's largest vessel HMS Ocean.

The centrepiece of the system will be the small scale pyrolysis plant designed
by Compact Power which has successfully completed commissioning and land trials
at QinetiQ's facility at Haslar, Gosport.

The project will involve the build, fitting and commissioning of the plant in
HMS Ocean during her refit in 2007.

The plant design which handles 150 kilograms an hour of mixed waste and reduces
it to an inert ash is based on Compact Power's proprietary technology that has
now been operating at Avonmouth for over five years. This will significantly
reduce the requirement for waste storage and handling on ships and meet
international environmental regulations.

QinetiQ has a long record as a developer and supplier of advanced technology to
the armed forces and has been developing a range of waste management systems for
The Royal Navy. As part of this work they secured with Compact Power the
contract to develop the Marine Pyrolysis Unit. Having completed this job
successfully and on time the two companies now wish to build on this success and
market the process to other navies and ship owners.

Nic Cooper Compact Power Chairman comments:

"The successful development of the small-scale plant with QinetiQ has been a
great success that has been in no small part due to the complimentary skills of
the two companies. I am delighted that we are now building on this partnership
to supply and fit the plant for HMS Ocean, and hope that this is the start of
successful marketing of this system."

Compact Power has completed work on designing a land based version of this plant
that will have other potential military applications and provide on site waste
processing for organisations such as hospitals.

QinetiQ Business Development Manager, Ian Grant commented: "We are very pleased
to be working with Compact Power on the development of Pyrolysis technology for
the Royal Navy's future waste management support initiative. The technology will
make the Royal Navy compliant with MARPOL legislation and reduce the day to day
drudgery of the ships' crew. The system also has the potential to produce
combined heat and power which in turn could reduce the overall fuel bill for the
Royal Navy."


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 QinetiQ

QinetiQ is a leading international defence and security technology company that
was formed in July 2001 from the UK Government's Defence Evaluation & Research
Agency (DERA). Today, QinetiQ has over 11,500 employees, who deliver 
technology-based services and exploit QinetiQ's strengths in technology research
by selling systems solutions,products and licences to government and commercial
customers in a spectrum of defence, security and other commercial markets.

On 15 February 2006, QinetiQ Group plc was listed on the London Stock Exchange -
main market. The MOD and Carlyle remain the largest shareholders, with QinetiQ
staff across the company also being a large collective shareholder.

For further information, please contact QinetiQ Press Office on Tel: +44 (0)
1252 39 3500

Email: [e-mail] www.QinetiQ.com

Contacts

Richard Hogg - Business Development Manager
Compact Power Ltd
T: 0117 9802910
M: 07771 734374
E: [e-mail]

Web: www.compactpower.co.uk


Ken Rees/Paul Vann
Winningtons Financial
T: 0117 920 0092
M: 07802 466567


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

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