January 27, 2003

News Release: Existing Customer Expands Earlier Purchase Indication

Hammond Power Solutions announced that the Company has successfully won an expanded contract to supply private branded distribution transformers to a long-standing major multinational customer. The agreement is valued at approximately C$6-8 million and will run through to the end of the year. The contract calls for the manufacture of both custom and standard transformers that will be utilized in a variety of commercial applications across the United States. It is anticipated that the first purchase orders will start in February with deliveries beginning in March or early April. These orders will continue over the remaining three quarters of the year, with hope of renewal for all or part of the business at the end of contract.

William G. Hammond, Chairman and CEO, said that the company is gratified to have been awarded such a sizable contract in the current highly competitive environment. This agreement is a positive reflection of the Company's broad product capabilities as well as its strong focus on superior customer service. Mr. Hammond noted that major challenges face the entire electrical industry this year due to the continuing slowdown of the U.S. economy and uncertainty over events in the Middle east. The addition of this business is particularly welcome, he noted, as it will improve the Company's results as the year progresses.

About Hammond Power Solutions Inc.

Hammond Power Solutions Inc. is the North American stand-alone leader for the design and manufacture of custom electrical engineered magnetics and is also the leading manufacturer of standard electrical dry-type transformers. Leading edge engineering capabilities, high quality products, and fast and responsive service to customers'needs have all served to establish HPS as a technical and innovative leader in the electrical industry. The Company has two manufacturing plants in Canada, one in the United States and one in Mexico.


CONTACT: TEL: (519) 822 - 2441 Hammond Power Solutions Inc.

W.G. (Bill) Hammond, Chairman and CEO

TEL: (519) 822 - 2441 Hammond Power Solutions Inc.

Chris R. Huether, VP Finance & Secretary

TEL: (416) 868 - 1079 Hume, Kieran Inc.

Jon W. Kieran, or Zuzana Bolender

Investor Relations

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