First commercial sales of 5kVA hydrogen fuel cell

Proton Power Systems plc

("Proton Power" or the "Group")

First commercial sales of 5kVA hydrogen fuel cell system

Proton Power Systems plc (AIM:PPS), a leading designer, developer and producer of fuel cells and fuel cell electric hybrid systems, is pleased to announce that its wholly owned subsidiary, Proton Motor Fuel Cell GmbH, has sold to customers in Germany and Italy, the first two units of its 19'' inch rack mounted fuel cell system. Each system can produce up to 5 kVA of electricity and fits into an industrial housing cabinet.

Commenting on the sale of these products, Dr. Faiz Nahab, CEO of Proton Power, said: "We are delighted to see the first sales of our new product. After a long testing period, we are convinced it will operate reliably and play an important role in our future business development. We hope to address more customers soon with our new product range, as hydrogen powered solutions will play an increasingly important role in the power supply industry as well as the provision of secure power for IT applications."

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About Proton Power Systems plc

Proton Power Systems plc is a developer and manufacturer of fuel cells and fuel cell hybrid systems for motive and stationary power supply. Its sales-driven strategy focuses on identifying applications with the greatest market needs and supplying large volumes of cost-competitive systems to fulfil those needs. Proton Power is gaining access to a broad range of markets through partnerships with leading OEMs such as Skoda Electric and Smith Electric Vehicles, in addition to contract manufacturers such as Deutsche Mechatronics.

Proton Power's motive applications include forklifts, city buses, municipal utility vehicles, commercial vehicles and ferries. Stationary applications focus on the Uninterruptible Power Supply ("UPS") sector, where there is a large demand for mission-critical, grid-independent secure power supply in places such as telecommunications stations, data centres, hospitals, and power substations.

Through its wholly owned subsidiary, Proton Motor Fuel Cell GmbH ("Proton Motor"), the Group has developed and deployed fuel cell modules that can be integrated with energy storage media to create hybrid fuel cell systems. Proprietary, intelligent energy management software balances the power output across the system to maximise efficiency and improve power delivery. The system therefore boasts lower fuel consumption and more consistent levels of power delivery than conventional diesel/combustion engine or fuel cell-only systems, while producing zero harmful emissions.

Proton Power Systems plc was admitted to trading on AIM on 31 October 2006 and is incorporated in the UK. Proton Motor has more than 15 years of experience in the fuel cell market and is located in Puchheim, near Munich, Germany.

www.protonpowersystems.com