Ocean Power Technologies Announces Results for the Fiscal Second Quarter Ended October 31, 2011

Ocean Power Technologies, Inc. (Nasdaq: OPTT) (“OPT” or “the Company”) announces financial results for its fiscal 2012 second quarter ended October 31, 2011.

Recent Highlights

· OPT’s contract backlog as of October 31, 2011 rose to $8.8 million from $7.1 million at July 31, 2011, due primarily to the contribution of a €2.2 million ($3.0 million) grant from the European Union, tied to the Company’s WavePort project in Spain. OPT is working with a consortium of European organizations to advance the PowerBuoy’s energy conversion system for incorporation in a PowerBuoy^® to be installed near Santoña, Spain.

· Revenues for the six months ended October 31, 2011 were $3.4 million, compared to $3.2 million for the prior year, reflecting an increase in revenues related to OPT’s project with the US Navy for maritime surveillance, the WavePort project in Spain, and the funded development of the 500 kilowatt-rated PB500 PowerBuoy.

· During the quarter, the Company successfully deployed an autonomous PowerBuoy off the coast of New Jersey for ocean trials as part of the US Navy’s Littoral Expeditionary Autonomous PowerBuoy (“LEAP”) program for coastal security and maritime surveillance. The LEAP PowerBuoy provided persistent power in all wave conditions, including during Hurricane Irene.

· Ocean Power Technologies also announced it will collaborate with Lockheed Martin in connection with the Company’s commercial-scale wave power generation project at Reedsport, Oregon. Lockheed Martin will provide design, manufacturing, system integration and supply chain management expertise to enhance OPT’s PowerBuoy technology.

“We ended the second quarter of fiscal 2012 with further progress on PowerBuoy deployments, and a number of business development initiatives to commercialize our technology are currently underway,” said Charles F. Dunleavy, Chief Executive Officer of OPT. “Given the performance and successful power output of our PB150 off Scotland and the LEAP autonomous PowerBuoy off New Jersey, we are moving forward on a number of fronts. In particular, we expect to advance our energy conversion systems under the WavePort project in Spain. Our collaboration with Lockheed Martin promises to enhance our Reedsport project as well as other potential opportunities. Consistent with our stated strategy, we have also increased our sales efforts regarding our autonomous PowerBuoy product for a variety of market applications. We believe that our prospects for fiscal year 2012 are encouraging, and that we are well-positioned for growth going forward.”

Financial Review

OPT’s contract backlog as of October 31, 2011 was $8.8 million compared to $7.1 million as of July 31, 2011. Backlog includes funded amounts and unfunded amounts that are expected to be funded in the future. Funded backlog was $6.8 million as of October 31, 2011 and $5.1 million as of July 31, 2011.

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