DISCLAIMER

S.A. Advisory acts as a consultant to EGPSF as of October 20, 1998. We have been paid $12,500.00, a cash fee, to produce a non-biased anecdotal report. Our decision to own this issue in our trading account is our right. We may buy, sell, or hold shares in this issue at any time. Before investing, consult the company for questions that you may have concerning EGPSF. The company fully reports with the SEC - Form 20F.

To Profile Contents

CORPORATE BUSINESS DESCRIPTION

Engineering Power Systems Group Inc. through its subsidiaries, is a vertically integrated builder and owner of power projects and a contractor of infrastructure projects.

M & M Engineering - Mechanical contracting, steel fabrication and offshore maintenance and service company - located in St. John's, Newfoundland, founded in 1967, 40K sq. ft. production facility and fabrication yard - skilled work force.

Merlin Engineering AS, Norway - A maritime engineering, architectural and detail design company with extensive experience with accommodation modules and helicopter decks for offshore installations.

Atlantic Seaboard Industries - founded in 1991 - location Newfoundland. Facility designed for fabrication and outfitting, i.e., barge mounted power plants, offshore oil rig modules and structure and ship repair and maintenance. A fully developed 18 Hectare complex, 13K sq. meters of fabrication and outfitting facilities, ocean load-out and dock-side capabilities, deep sea all weather port, multi-discipline, multi-metal fab of off/on shore projects. Highly skilled labor force.

Atlantic Seaboard Industries (ASIL) and SNC Lavalin, Canada's largest engineering and construction company, have been awarded an engineering, procurement and construction contract for the 212 MW barge mounted power plant destined for Andhra Pradesh.

EGPSF and CMS Energy have formed a joint venture to develop, finance, construct, own and operate barge-mounted electric generating units throughout the world. CMS and EPSG signed an agreement to collaborate in the evaluation of barge-mounted electric generating projects.

To Profile Contents

CORPORATE INFORMATION

1. Year end - June 30 (fiscal)
2. Fully diluted shares outstanding - 35 million
3. Management controls - 5 million
4. Institutional holdings - 2.2 million
5. Fully reporting with SEC - 20 F
6. Anticipates electronic filing near term and also anticipates NASDAQ listing once stock price reaches US $4.00
7. Bulletin Board Symbol - EGPSF Canadian Symbol - EPSX
8. Current market cap - US $52.5 million
9. SNC-Lavalin - Canada's leading construction and engineering company will joint venture with EGPSF's Sub ASIL for the construction of the 2 power barges. SNC-Lavalin trades on the Toronto Stock Exchange (Symbol SNC/TSE) Lavalin has revenue in the billions.
10. Energy has formed a joint venture with EGPSF to develop, finance, construct, own & operate barge-mounted electrical generating units. CMS-Energy is the 4th largest utility in the US. They are the 7th largest independent power producer in the world. They have $10 billion in assets &have revenues of almost $6 billion. They operate in 21 countries.
11. Shareholders - 5,000
12. Estimated Sales & Earnings for fiscal 98 - $34 million/loss (.14)
13. Estimated Sales & Earnings for fiscal 99 - CDN $57 million/gain .003
14. Estimated Sales & Earnings for fiscal 00 - CDN $340/gain .39
15. Legal Counsel - Macloed Dixon, 181 Bay St., Ste 4520, BCE Place, Toronto, Ontario M5X 1J5
16. Auditor - Ernst & Young, 139 Water St. 7th Fl., St. Johns, Newfoundland A1C 1B2
17. Transfer Agent - Equity Transfer Services Inc., 120 Adelaide St. W, Ste 420, Toronto, Ontario, M5H 3V1
18. Investment bankers - Everen Securities, Inc. 77 W Wacker Drive, Ste 3100, Chicago, Ill 60601-1694
    

To Profile Contents