CFU First BlueGen Sale in the UK

1 April 2010

CERAMIC FUEL CELLS FIRST BLUEGEN SALE IN THE UK

Ceramic Fuel Cells Limited (AIM/ASX: CFU), a leading developer of high efficiency and low emission electricity generation units for homes and other buildings, has sold its first BlueGen gas-to-electricity unit in the United Kingdom, to Ideal Boilers.

With over 100 years of experience, Ideal Heating have been designing and manufacturering heating solutions that are trusted by the trade and relied upon by homeowners across the United Kingdom. Today, the range includes tradtional domestic gas boilers and renewable technologies like Solar Thermal and Air Source Heat Pumps.

BlueGen units generate electricity in the home far more efficiently than the current European power grid, cutting energy bills and significantly reducing carbon emissions.

Connecting to existing gas pipes and about the size of a dishwasher, BlueGen uses fuel cell technology to convert mains gas into electricity. Over a year, each BlueGen can produce twice the electricity needed to power an average UK home. Surplus electricity can be sold back to the grid under the UK Government's feed-in tariff, effective from 1 April 2010, which pays homeowners 10 pence for every kilowatt hour of electricity generated plus an additional 3 pence for every kilowatt hour of electricity exported to the local power grid. BlueGen also produces enough heat to satisfy the average UK home's daily needs for hot water.

Ideal Boilers will test and demonstrate the BlueGen unit at its product development and manufacturing facility in Hull, England.

Ceramic Fuel Cells is continuing to build its order book for BlueGen units from major utilities and other foundation customers in Europe, Japan and Australia, including E.ON Ruhrgas, EWE, Gasterra, Mitsui & Co. and Osaka Gas.

Using the same fuel cell technology, Ceramic Fuel Cells is also developing fully integrated power and heating products with leading energy companies E.ON UK in the United Kingdom and GdF Suez in France.

Ceramic Fuel Cells has achieved electrical efficiency of 60 percent, far higher than any other technology in the rapidly expanding market for small scale power and heating generators. When heat is recovered from the electricity production process, total efficiency is up to 85 percent - twice as efficient as the average among current European power stations.

By generating power close to where it is used, Ceramic Fuel Cells' products can meet the future demand for electricity without the need for huge investments in electricity transmission and distribution infrastructure.

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About Ceramic Fuel Cells Limited

Ceramic Fuel Cells Limited is a world leader in developing fuel cell technology to provide highly efficient and low-emission electricity from widely available natural gas. The Company is developing micro combined heat and power and distributed generation units that generate electricity and heat for homes and other buildings. Ceramic Fuel Cells is developing products with leading appliance partners and utility customers in Germany, France, the United Kingdom and Japan. In 2009 the company launched its BlueGen gas-to-electricity product.

Ceramic Fuel Cells is headquartered in Melbourne, and has operations in the UK and Germany. In October 2009 the Company opened its fuel cell stack manufacturing plant in the Industriepark Oberbruch in the North Rhine-Westphalia region of Germany. The Company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

www.cfcl.com.au