CPO Compact Power

RNS Number:6217M
Compact Power Holdings PLC
23 May 2005


Compact Power Holdings plc announces that it has now formally entered into a
loan agreement with Cooper Holdings Limited, details of which were approved by
shareholders at an EGM held on 23 December 2004.  The loan arrangement was
subject to shareholders approval as Nic Cooper, Chairman of the Company, is
interested in the loan transaction as a director and shareholder of the Company
and as a potential beneficiary of the Cooper Family Settlement, which wholly
owns Cooper Holdings Limited.  Cooper Holdings is currently beneficially
interested in 6,771,741 ordinary shares, representing approximately 23.2 per
cent. of the Company's issued ordinary share capital.

The loan, which is secured over the assets of the Group, is for #500,000 of
which #250,000 has already been drawn down.  The loan, which attracts interest
at LIBOR plus 2.5 per cent., is repayable on the repayment date of the loan,
being 30 September 2005.  By way of an arrangement fee the Company has agreed to
grant Cooper Holdings Limited a warrant to subscribe for 885,000 ordinary shares
at 2p per share.

Due to the nature of the loan, the arrangement with Cooper Holdings is
classified under the AIM Rules as a related party transaction.  The independent
directors, that is excluding Nic Cooper, having consulted with the Company's
nominated adviser in accordance with the AIM Rules, consider that the terms of
the transaction are fair and reasonable insofar as shareholders are concerned.



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