Hammond Power Solutions Inc. Statement of Claim Settlement

Market Wire, August, 2009

Hammond Power Solutions Inc. (HPS)(TSX: HPS.A) announced today that a settlement of statements of claim has been reached between an adjoining industrial property owner, and HPS and Hammond Manufacturing Company Limited (HMCL).

HPS and HMCL equally own at property 2 Glen Road, Georgetown, Ontario were served with a statement of claim in January 2002, by an adjoining industrial property owner, in which the plaintiff had claimed damages in the amount of $8,000,000. In 2004, HPS and HMCL served a counter-claim against the plaintiff in the amount of $8,000,000. Both claims have been settled by agreement between the parties which includes a joint remediation plan. HPS has previously provided for what it expects to the related environmental remediation costs in its financial statements and is not aware of any additional contingencies for the property or statements of claim.

About Hammond Power Solutions Inc.

HPS is the North American leader for the design of custom electrical engineered magnetics as well as the leading manufacturer of standard electrical dry type transformers. Advanced engineering capabilities, high quality products and fast responsive service to customers' needs have established HPS, as a technical and innovative leader in the electrical and electronic industries. HPS has manufacturing plants in Canada, the United States and Mexico.

Caution Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable securities laws. The forward-looking information contained in this press release is subject to known and unknown risks, uncertainties and other factors that are not within the control of HPS. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should", "scheduled", "will", "plan" and similar expressions. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause HPS's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information and developed based on assumptions about such risks, uncertainties and other factors set out herein.

A discussion of factors that may affect HPS's actual results, performance, achievements or financial position is contained in the filings by HPS with the Canadian securities regulatory authorities, including HPS's Annual Information Form. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. HPS disclaims any intent or obligations to update or revise publicly any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required to do so by law.

If you would prefer to receive press releases via email contact Investor Relations at; ir@hammondpowersolutions.com .

Contacts: Hammond Power Solutions Inc. Dawn Henderson Manager Investor Relations (519) 822-2441 x414