Brian Posner – CFO Charles Dunleavy – CEO

Good day, everyone and welcome to Ocean Power Technologies’ fiscal year 2010 audio web cast. Today’s conference is being recorded and web cast. At this time for opening remarks, I would now like to turn the call over to Chief Financial Officer of Ocean Power Technologies, Mr. Brian Posner. Please proceed.

Thank you. Good morning and welcome to Ocean Power Technologies’ audio web cast for the fiscal year ended April 30, 2010. Today we issued our year-end earnings press release and tomorrow we will be filing our annual report on Form 10-K with the Securities and Exchange Commission. Our public filings can be viewed on the SEC website at www.sec.gov or you may go to our website www.oceanpowertechnologies.com. It will be joined on today’s web cast by Charles Dunleavy, our Chief Executive Officer. Please advance to slide two. During the course of this conference call, management may make projections or other forward-looking statements regarding future events or financial performance of the company within the meaning of the Safe Harbor provision of the Private Securities Litigation Reform Act of 1995. As indicated in the slide, these forward-looking statements are subject to numerous assumptions made by management regarding future circumstances over which the company may have little or no control and involve risks and 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. We refer you to the company’s Form 10-K and other recent filings with the Securities and Exchange Commission for a description of these and other risk factors. I will now turn the call over to Charles Dunleavy.

Thank you Brian, and thanks to everyone who has joined us for today’s web cast. We are delighted to bring Brian onboard as our new chief financial officer. Brian joins OPT with over 25 years of experience in both public and private companies, encompassing NASDAQ listed companies, as well as early-stage businesses. In addition, he served on the audit staff of PricewaterhouseCoopers, where he had a diverse group of clients in the manufacturing, banking, and natural resources sectors. Moving to slide three, fiscal 2010 was a pivotal year as OPT continued to step up its commercial activities worldwide, resulting in several key milestones during the period. The company now has more projects in more territories than ever before in its history, underscoring its position as the world leader in harnessing wave power. We successfully deployed and continue to operate a PowerBuoy off the coast of Hawaii, while also completing ocean trials of our unique Undersea Substation Pod in Spain. Substantial progress was also made on the delivery of our next generation PB150 PowerBuoy. Construction of the first of these is nearly complete, and is scheduled for in ocean testing in Scotland in the second half of this calendar year. Manufacture of the second buoy for Reedsport, Oregon, is well underway. The company’s management team has strengthened and serves to broaden our capability for commercial execution of our business strategy. OPT’s technology was recognized with significant new funding awards in Australia, the European Union, and in the United States. We also continued to strengthen our relationships with partners, governments and customers at various levels. In the US, these included the US Navy, the Department of Energy, and the State of Oregon. In the UK, we further advanced our commitments to projects in Cornwall, South West England, as well as in Scotland.…

Thank you Chuck. As you will see on slide 13 our revenue increased by 26% in fiscal 2010 to $5.1 million compared to $4 million in fiscal 2009. This growth primarily reflects an increase in revenue from the U.S. Navy under the DWADS and LEAP programs, for which OPT provides its autonomous PowerBuoy technology. In addition, there was an increase in revenue related to OPT’s project off the coast of Reedsport, Oregon. The growth in revenue generated by these projects partially mitigated the declining revenue from OPT’s utility scale project in Spain and the companies PowerBuoy project with the U.S. Navy at the Marine Corps base in Hawaii now in operation. In fiscal 2010, gross profit grew by $1.6 million to $800,000 compared to a loss of $800,000 for the previous year. Cost of revenue decreased by 11% to $4.3 million in fiscal 2010 compared to $4.8 million in fiscal 2009. The decrease reflected a lower level of activity on our project off the coast of Spain, offset by increased activity related to our autonomous PowerBuoy projects for the U.S. Navy. Cost of revenue for fiscal 2010 also reflects a reversal of $400,000 provision for a loss on a contract recorded in a previous fiscal year. Our future gross margins will be dependent on the nature of future contracts, our success at increasing sales of our PowerBuoy systems, and our ability to manage costs incurred on fixed price commercial contracts. Product development costs increased to $13 million in fiscal 2010 as compared to $8.4 million in fiscal 2009. These costs were primarily due to our efforts to increase the power output and reliability of our utility PowerBuoy, especially the 150 kW PowerBuoy system. Selling, general, and administrative costs decreased by 5% to $9.1 million compared with $9.5 million for the…

Thanks Brian. Turning to slide 15, I would now like to look forward and discuss our near-term goals and growth strategy as we continue to commercialize our technology. Over the forthcoming months, OPT expects to achieve milestones on a number of key projects. Firstly, we plan to conduct in ocean trials of our first PB150 device off the coast of Scotland later this year, following completion of the integration of the buoy, which is pictured on slide 15. We will continue to progress with the construction of the second PB150 which will be installed in 2011off the coast of Reedsport, Oregon. We also expect to connect the Hawaii PowerBuoy to the grid powering the Marine Corps base at Oahu. This will be the first connection to the grid by our demonstration device, a landmark in the company’s development effort for the U.S. Navy. By the end of calendar year 2010, we also expect to have deployed our enhanced autonomous PowerBuoy for the U.S. Navy’s deep water active detection system program and to have completed the first stage of our contract under the Navy’s LEAP project. We are confident that these goals with further demonstrate the potential of wave energy and OPT’s power technology as an economically viable source of clean energy in the overall renewal energy mix. To conclude with slide 16, we will continue to focus primarily on selling turnkey power stations and operations and maintenance contracts for those facilities. We also intend to increase our revenue streams from the utility and autonomous PowerBuoy markets by accelerating the commercialization of our PowerBuoy systems. The worldwide market for grid connected power generation equipment is estimated to be $150 billion per year of which we believe the addressable renewable portion is about $50 billion a year. We expect to continue to…

Thank you everyone. That concludes today’s web cast. You may now disconnect.