(the «Company») The Board of Directors of the Company met on 22 April 2016, in order to determine the final terms of the Authorization.

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1 ELECTRO POWER SYSTEMS Société anonyme with a Board of Directors With a share capital of EUR 1,576, Registered office: 14-16, boulevard Poissonnière Paris R.C.S. Paris (the «Company») ADDITIONAL REPORT OF THE BOARD OF DIRECTORS DATED 22 APRIL 2016 USE OF THE DELEGATIONS GRANTED BY THE EXTRAORDINARY GENERAL MEETING DATED 16 FEBRUARY 2015 TO THE BOARD OF DIRECTORS Dear Shareholders, Pursuant to the 18 th resolution of the extraordinary shareholders meeting dated 16 February 2015 (the «EGM»), you have decided to delegate to the Board of Directors all necessary powers in view to, notably, determine the final terms and conditions of the issuance of warrants (bons de souscription d actions), with a suppression of the shareholders preferential right of subscription for that purpose, to the benefit of all members of the Board of Directors, whether individuals or entities (notably as a result of the adoption of the resolutions presented to the EGM), former employees and founders of the Company, or consultants of the Company, as at the date of grant by the Board of Directors (the Authorization ). The Board of Directors of the Company met on 22 April 2016, in order to determine the final terms of the Authorization. In that context, please find hereafter the additional report established by the Board of Directors as a consequence of the use of the Authorization, pursuant to articles L , R and R of the French Commercial Code. The statutory auditors of the Company shall also establish an additional report on the operation, pursuant to the provisions of article R of the French Commercial Code. (A) PURPOSE OF THE OPERATION The shareholders of the Company, during the EGM, have decided to implement, for the benefit of executives, directors, employees, former employees and founders, and consultants of the group composed by the Company and its subsidiaries (the EPS Group ), profit-sharing plan in the form of stock options ( ESOP or Options ) and, for the beneficiaries not eligible to stock options, warrants reproducing the same conditions as the stock options ( Warrants or BSA ). By decisions dated 6 March 2015, the Board of Directors made use of the authorization conferred by the EGM, granted in full 360,890 Warrants (the BSA ) to a determined list of beneficiaries, decided to set the strike price at 0.20 /share, and adopted the plan applicable to the determined list of beneficiaries (the Plan 1 BSA Allocation ). By decisions dated 21 April 2015, the Board of Directors made use of the authorization conferred by the EGM, granted 78,883 Warrants (the BSA ) to a determined list of beneficiaries, decided to set the strike price at 5.81 /share, and adopted the plan applicable to the determined list of beneficiaries (the Plan 2 BSA Allocation )

2 By decisions dated 26 November 2015, the Board of Directors made use of the authorization conferred by the EGM, granted 5,000 Warrants (the BSA ) to Mrs Francesca Cocco, decided to set the strike price at 5.81 /share, and adopted the plan applicable to Mrs Francesca Cocco (the Plan 3 BSA Allocation ). The Authorization has been used in order to issue 71,802 warrants (bons de souscription d actions, the «Warrants» or «BSA ») to the benefit of Mr Paolo Bonetti, who is a consultant providing administration and finance management services to the Company. (B) LEGAL FRAMEWORK OF THE OPERATION Pursuant to its 18 th resolution, the EGM vested the Board of Directors with the competence and powers to: - Decide one or several increases in share capital by means of the issuance of Warrants ; - Set the list of beneficiaries falling within the category of beneficiaries to the benefit of whom the shareholders right of subscription has been suppressed, and the number of Warrants allocated to each of them, set the characteristics, amounts and conditions of the Warrants, it being noted that each Warrant shall give the right to subscribe to one share of the Company; - Namely, set the subscription price and strike price of said Warrants, which shall be at least equal to the strike price of the stock options issued pursuant to the 19 th resolution of the EGM, to be determined pursuant to the provision of article L paragraph 4 of the French Commercial Code and the vesting date; - Take all measures, conclude all agreements and complete all formalities to achieve these issuances of BSA, record the completion of the share capital increases which will result from these issuances and consequently amend the by-laws of the Company and amend, if necessary (and subject to the approval of the holders of BSA), the BSA issuance agreement. By decisions dated 22 April 2016, the Board of Directors made use of this delegation of competence and powers in order to proceed with the above-mentioned issuance. In this context, and pursuant to article L of the French Commercial Code, the Board of Directors has established the present report on the use of this delegation. This report is made available to the shareholders at the Company s registered office and shall be made available to them before the next EGM. On this basis and pursuant to the abovementioned applicable laws and regulations, the present report details the final conditions of the issuance of BSA as they have been set by the Board of Directors and setting out the impact of such issuance on the situation of the shareholders and holders of instruments giving right to the share capital of the Company. (C) FINAL TERMS OF THE ISSUANCE OF BSA By decisions dated 22 April 2016, the Board of Directors decided to: - use the authorization conferred by the EGM dated 16 February 2015 (18 th resolution) to grant 71,802 BSA , to Mr Paolo Bonetti, - define the terms and conditions of a new BSA plan (the Plan 4 BSA Allocation ): - 2 -

3 number of shares that can be subscribed as a result of the exercise of BSA : each BSA grants the right to subscribe 1 share of the Company; subscription price: the subscription is set at an amount equal to 0,01 /share; exercise calendar: o 37.5% of the BSA may be exercised after the expiry of an 18-month period from the date of grant (i.e. as from 21 October 2017); o The remaining BSA become exercisable by slots of 6.25%, every quarter during the following period of 2 years and a half. The BSA shall therefore be all exercisable at the expiry of a 4 year period. The BSA which have not been exercised on 21 April 2025 shall be automatically void. - grant all powers to the Managing Director to inform the beneficiary of BSA of the terms and conditions of those BSA (D) IMPACT OF THE ISSUANCE ON THE SITUATION OF THE HOLDERS OF SHARE OF THE COMPANY AND HOLDERS OF INSTRUMENTS GIVING ACCESS TO THE SHARE CAPITAL OF THE COMPANY I. Impact of the issuance of BSA on the shareholders Impact of the exercise of the BSA on a shareholder holding 1% of the share capital before their issuance (calculation made on the basis of the number of shares making up the share capital of the Company as at 22 April 2016, i.e. 7,881,807 shares): Participation of the shareholder (%) Prior to the exercise of BSA ,881,807 1 % O,8495% After the exercise of BSA ,953, % 0,8430 % Impact of the exercise of the BSA on the shareholders equity per share (calculation made on the basis of the shareholders equity as of 31 December 2015, amounting to 52,116,628 euros, increased by the impact of the exercise of the BSA , representing 313, euros, i.e. a total amount of 52,429, euros, and on the number of shares making up the share capital of the Company as at 22 April 2016, i.e. 7,881,807 shares): - 3 -

4 Shareholders equity per share Prior to the exercise of BSA ,881, After exercise of BSA ,953, II. Impact of the issuance of BSA holders of instruments giving right to the share capital of the Company II.1 Holders of BSA , BSA and BSA As of today, 444,773 BSA , BSA and BSA have been issued by the Company and have not yet been exercised, giving right to their holders to subscribe to 1 share of the Company per exercised BSA. Impact of the exercise of the BSA on the holder of a number of BSA or BSA or BSA giving right, upon exercise, to the subscription of 1% of the share capital of the Company, who would exercise his BSA before the exercise of the BSA (calculation made on the basis of the number of shares making up the share capital of the Company as at 22 April 2016, i.e. 7,881,807 shares): Participation of the shareholder (%) Before exercise of BSA , BSA and BSA and before exercise of BSA After exercise of BSA , BSA and BSA and before exercise of BSA ,881,807 0 % 0 % 8,326,580 1% % After exercise of BSA , BSA and BSA and after exercise of BSA ,398, % % (1 Impact of the exercise of the BSA on the shareholders equity per share (calculation made on the basis of the shareholders equity as of 31 December 2016, amounting to 52,116,628 euros, increased by the impact of the exercise of the BSA , representing 313, euros, i.e. a total amount of 52,429, euros, and on the number of shares making up the share capital of the - 4 -

5 Company as at 22 April 2016, i.e. 7,881,807 shares) for the holder of BSA or BSA or BSA exercising their BSA before the exercise of BSA : Shareholders equity per share Before exercise of BSA , BSA and BSA and before exercise of the BSA After exercise of BSA , BSA and BSA and before exercise of the BSA ,881, ,326, After exercise of BSA , BSA and BSA and after exercise of the BSA ,398, II.2 Holders of stock-options Before 22 April 2016, 847,363 stock options (the Options ) had been issued by the Company and have not yet been exercised, giving right to their holders to subscribe to 1 share of the Company per exercised option. On 22 April 2016, the Board of Directors acknowledged that the employment agreement or office of several persons was terminated or revoked by the EPS Group and as a consequence, the concerned persons lost their right to exercise the 102,673 Options they were holding. In addition, the Board of Directors held on 22 April 2016 decided to grant 58,066 additional Options to a determined list of beneficiaries. Consequently, as of today, the number of Options which have been issued by the Company and have not yet been exercised amounts to 802,756 Options. Impact of the exercise of the BSA on the holder of a number of stock-options giving right, upon exercise, to the subscription of 1% of the share capital of the Company, who would exercise his options before the exercise of the BSA (calculation made on the basis of the number of shares making up the share capital of the Company as at 22 April 2016, i.e. 7,881,807 shares): Participation of the shareholder (%) Before exercise of the stock-options and before exercise of the BSA After exercise of the stock-options and before exercise of the BSA ,881, % 0.850% 8,684, % 0.850% - 5 -

6 After exercise of the stock-options and after exercise of the BSA ,756, % 0.850% Impact of the exercise of the BSA on the shareholders equity per share (calculation made on the basis of the shareholders equity as of 31 December 2016, amounting to 52,116,628, increased by the impact of the exercise of the BSA , representing 313, euros, i.e. a total amount of 52,429, euros, and on the number of shares making up the share capital of the Company as at 22 April 201, i.e. 7,881,807 shares) for the holder of stock options exercising their stock options before the exercise of BSA : Shareholders equity per share Before exercise of the stock-options and before exercise of the BSA After exercise of the stock-options and before exercise of the BSA ,881, ,684, After exercise of the stock-options and after exercise of the BSA ,756, (E) THEORETICAL IMPACT OF THE ISSUANCE OF BSA ON THE MARKET VALUE OF THE COMPANY S SHARE Theoretical impact of the exercise of the BSA on the actual market value of the Company s share (market value as it results from the average of the last twenty (20) trading days preceding 22 April 2016): Market value Before exercise of the BSA After exercise of the BSA The Board of Directors - 6 -