Half Yearly Report & Accounts

22 February 2010

CERAMIC FUEL CELLS LIMITED

INTERIM RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2009

Ceramic Fuel Cells Limited (AIM, ASX: CFU), a global leader in fuel cell development, announces interim financial results for the six months ended 31 December 2009 (FY10 Interims).

The Directors' Report and Financial Report for the half year are available at www.cfcl.com.au.

Key points are summarized below:

Financial Results:

• Revenue: A$1.5m / £0.9m

§ FY09 Interims A$0.9m / £0.5m

§ Development income for integrated m-CHP units up A$0.5m / £0.3m

• Net loss: A$10.1m / £5.8m

§ FY09 Interims A$32.6m / £18.6m

§ Improvement due to:

• Sales revenue up A$0.5m / £0.3m

• Operating expenses down A$1.0m / £0.6m

• Impairment charge on financial assets taken last year and partially reversed this year - A$30.4m / £17.3m

• Foreign exchange translation loss of A$4.1m / £2.3m compared to gain in prior corresponding period of A$4.2m / 2.4m

• Net operating cash outflow: A$4.9m / £2.8m

§ FY09 Interims A$7.4m / £4.2m

§ FY10 includes receipt of government grant - A$2.2m / £1.3m

• Cash balance at 31 Dec 2009 - A$24.1m / £13.7m

Operational Highlights:

Product Development Projects

§ UK

§ Utility E.On UK + appliance partner Gledhill

§ One fully-integrated unit installed and operating prior to Christmas

§ Second unit installed in Jan 10

§ Germany

§ Utility EWE + appliance partner Bruns

§ First units completed prior to Christmas

§ Currently three fully-integrated units installed.

§ France

§ Utility GdF/Suez + appliance partner De Dietrich Thermique

§ One fully-integrated unit installed and operating

§ Second unit under going commissioning

BlueGen

·; In 2009 Company develops a modular 2kW 'go to market' product call BlueGen

·; CE approval expected to be obtained by the end of March 2010

·; Currently have received orders for 12 units, from 8 customers in 4 countries

·; Initial sales being made to strategic customers

Manufacturing

§ Completed the build of the fuel cell stack manufacturing plant in Germany

§ Plant is currently completing commissioning and is expected to start stack production from the end of February 2010.

§ Total investment in the plant will be €9.5m / £8.3m

Funding

§ Received NRW Government grant of €1.4m / £1.2m (requires company to meet targets for capex spend and jobs created)

§ Completed financing transaction for German plant equipment - net funds received €1.5m / £1.3m

Technology

• Development activities focused on increasing the reliability and robustness of the fuel cell stacks - particularly to increase the number of times the fuel cell stack can be 'thermally cycled' i.e. turned on and off.

2010 Outlook / Objectives

·; Revenue:

o Generate sales revenue from selling BlueGen and integrated m-CHP products

o Finalise BlueGen offerings to individual markets

o Deploy early BlueGen units to Japan

o Expand sales and distribution channels for BlueGen product

o Increase deployment of integrated m-CHP units with European utility customers under existing agreements.

o Produce and sell advanced ceramic powders from UK plant.

·; Manufacturing

o Complete CE and local safety approvals for BlueGen

o Commence production from German fuel cell stack plant

o Expand the number of appliance partners making BlueGen units

·; Technology

o Continue to enhance the technical performance of the fuel cell systems, focusing on reliability and lifetime.

The interim results and Company presentations are available at www.cfcl.com.au.

For further information please contact:

About Ceramic Fuel Cells Limited:

Ceramic Fuel Cells Limited is a world leader in developing solid oxide fuel cell technology to provide highly efficient and low-emission electricity from widely available natural gas and renewable fuels. The company is developing micro combined heat and power and distributed generation units that generate electricity and heat for homes. Ceramic Fuel Cells is developing products with leading appliance partners and utility customers in Germany, France, the United Kingdom and Japan. The company is listed on the London Stock Exchange AIM market and the Australian Securities Exchange (code CFU).

www.cfcl.com.au