George W. Taylor

Energy Ocean 2008Galveston, TexasJune 24 - 26, 2008

Ocean Power Technologies, Ltd.Warwick Innovation Centre, Warwick Technology Park, Gallows Hill, WarwickshireCV346UWU.K.

Ocean Power Technologies, Inc. 1590 Reed RoadPennington, NJ 08543USAPhone: 609-730-0400Fax: 609-730-0404www.oceanpowertechnologies.com

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Forward-Looking Statements

In addition to historical information, this presentation contains forward-looking statements that are based on assumptions made by management regarding future circumstances over which the company may have little or no control and involve risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. These factors include, among others, the following: future financial performance indicating expected cash flow, the ability to reduce costs and improve operational efficiencies, revenue growth and increased sales volume, or success in key markets, our ability to enter into relationships with partners and other third parties, delivery and deployment of PowerBuoys®, increasing the power output of our PowerBuoys and hiring new key employees and expected costs of our PowerBuoy product, and building strong long-lasting customer relationships. Many of these risks are discussed in our recent filings with the Securities and Exchange Commission.

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OPT Wave Power Station

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View of OPT Wave Power Station from Shore

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PowerBuoy Schematic

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PowerBuoy In Operation

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Individual PowerBuoy and Undersea Substation

Float

Spar

Under Sea Sub

Station

Cables from other

PowerBuoys

Sea FloorCable to Shore

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Ocean-tested and proprietary technology – 37 Patents issued

World-class customer and partner relationships

Attractive economics versus other renewable energy technologies

Rapid commercialization under way with a defined growth plan

Experienced management team with strong execution track record

$130 million (net) raised with listings on Nasdaq and London’s AIM market

Very strong cash position

O.P.T.: Leading Wave Power Story

Ocean waves are the ultimate renewable energy source

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Wave Energy Near Population Centers

2TW of energy, the equivalent of twice the world’s electricity production, could be harvested from the world’s oceans (World Energy Council)

Attractive Wave Energy Levels

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Wave Energy and the Advantages of OPT’s Systems

Wave energy is the most concentrated form of renewable energy:Widespread throughout the U.S., U.K, Europe & other parts of the worldClose to population centersPredictable & dependable, and can be fed into the power grid or storedRelatively small “footprint” – 300 sq miles of ocean area off California is estimated to be capable of producing electrical power needs for all of California’s homes

Using OPT’s PowerBuoy® technology to convert wave energy to electrical energy has several advantages:

Load factor of 30-45% versus solar and wind load factors of 10%-35%Environmentally benign & non-polluting: no exhaust gases, no noise, minimal visibility from shore, safe for sealifeScalable to high capacity power stations (100MW+)

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Profile of PowerBuoy System

PB40Currently

in Production

PB1502007

PB5002010

(Drawn to scale)

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PowerBuoy system is based on ocean-going buoys, and is primarily below the ocean

surface

Extensive in-ocean experience, including successfully withstanding hurricanes and

winter storms

Electronic “tuning” capability to optimize power output in changing wave conditions

Certified grid connection system

Independent environmental assessment resulted in “Finding of No Significant Impact”

Strong partners (Iberdrola, Total, Scottish Government, US Navy, PNGC Power)

Strong capital base

Competitive Advantages

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Survivability

Operating range 1.5 to 7m

Automatically detunes between 4 to 7m

Automatically locks up for storm and hurricane wave conditions above 7m

Automatically unlocks when waves less than 7m

Designed to survive 100 year storm wave conditions

– 24m - Orkney Islands, Scotland

– 20m - Bay of Biscay, Spain

– 18m - Oregon and Cornwall

– 16m - MCBH Hawaii

Lloyds has provided OPT, since 1999, commercial insurance for loss or liability for PowerBuoys operating in Atlantic and Pacific

Demonstrated survivability in two separate hurricanes

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Streamlined Manufacturing and DeploymentOutsourced buoy structure → Electrical integration and testing → Component integration + quality control

MA

NU

FAC

TUR

ING

DEP

LOYM

ENT

Buoy leaves facility → towed horizontally to site → deployment complete

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Multiple Market Opportunities

Desalinization

Water Treatment

Aquaculture

Off-Shore PlatformsHomeland Security

Oceanography

Tax Credit Monetization

Green Tags, Renewable Obligation Certificates, Carbon Credits

Large Primary Market for Utility PowerBuoys

Other Application Driven Markets for Utility and Autonomous PowerBuoys

Regulatory Incentives for PowerBuoy Systems

Hydrogen Production

Grid-Connected Power Stations for Utilities and IPPs - $150 Billion worldwide market

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OPT Competitive with Other Energy Sources Renewables Fossil Fuel

OPT Wave

Powerd Solar Wind Natural Gas Coal

Capital Cost per MW a $1.8 – 3.9mm c $2.5 – 4.5mm $1.7 – 2.3mm $0.6 – 1.0mm $1.5 – 2.0mm

Energy Cost Per kWh a 5-15¢ 10-25¢ 6.5-9¢ 4.0-7.0¢ 4.0-7.0¢

(a) International Energy Agency, Projected Costs of Generating Electricity 2005. Wind low-high range reflects on-shore and off-shore generation(b) Company estimated number of buoys produced per year to achieve indicated energy cost(c) Company estimated sales price per MegaWatt for large-volume production of PB 150 and PB 500(d) Company estimates

Production Levels b

PB 150 $3.9mm / 15¢ 400 buoys/yr

PB 500 $1.8mm / 5¢ 300 buoys/yr

OPT PowerBuoy:

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Global Contracts

ScotlandScottish Executive

Orkney Islands, Scotland

Phase: DevelopmentCapacity: 0.15-2MW

PB150

Phase: DemonstrationCapacity: 0.1-1MW

PB40

US NavyMarine Corps Base

Oahu, Hawaii

OregonIPP

Reedsport, OR

Phase: Permit FiledCapacity: 2-50MW

PB 150

WashingtonLockheed Martin

Gray’s Harbor, WA

Phase: CompleteCapacity: 1kW

PB1

Phase: DemonstrationCapacity: 40kW

PB40

State of New JerseyAtlantic City, NJ

Phase: DevelopmentCapacity: 2-5MW

PB150

FranceTotal and IberdrolaWest Coast France

Phase: ConstructionCapacity: 1.4MWPB40 & PB150

SpainIberdrola and Total

Santona, Spain

EnglandIPP

Cornwall, UK

Phase: DevelopmentCapacity: 5MW

PB150

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Ongoing Marketing Initiatives

Australasia20-35 MW

Japan1-5 MW

Europe30-140 MWNorth America

30-150 MW

Commercialization Ramp-UpSpain: Iberdrola (PB40 and PB150’s) Orkney Islands, Scotland: Scottish Government (PB150)

Reedsport, Oregon: FERC Application for 50 MW’s (PB150’s) Hawaii: US Navy (PB40’s)

Coos Bay, Oregon: FERC Application for 100 MW’s (PB500’s) Cornwall Wave Hub, United Kingdom: British Government (PB150)

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Iberdrola Contract

Standard OPT manufacturing process:

Buoy fabricated in Spain

Power take-off and control system (“smart-part”) built in New Jersey

Integration and test of complete PowerBuoy in Spain

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Iberdrola Contract Site – Northern Spain

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Oregon ProjectsIntegrated coastal strategy to develop a wave industry by licensing 250 MW’s of Wave Parks from FERC at three sites

Reedsport

• Initially 2M using PB150’s

• Future build out to 50 MW

Coos Bay

• 100 MW using PB500’s

Newport

• 100 MW using PB500’s

Financing

• Business Energy Tax Credit (BETC)

• Renewable Energy Credits (REC’s)

• Tariffs under discussion

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Reedsport, Oregon Site

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OPT is the first wave power company to have:

Achieved over 40 months of in-ocean testing

Entered into a commercial contract with a utility

Received an Operations and Maintenance contract with a utility

Listed its shares on two public markets (LSE’s AIM and Nasdaq)

Sold rights associated with the generation of carbon emissions credits

Opened US utility markets with FERC permit applications for a total of 270MW in Oregon and

California at four separate sites

Certified grid connection system

Independent environmental assessment resulting in “Finding of No Significant Impact”

PIONEER ACHIEVEMENTS

EnergyOcean 2008 presentation_June 08.ppt