Key US patent granted

Ceres Power Holdings plc
13 December 2004


           Ceres Power Holdings plc ('Ceres Power' or the 'Company')

                                 Trading Update
 
                     Ceres Power is granted major US patent

Ceres Power, the AIM listed fuel cell company, has been granted a landmark
patent in the US.

The patent covers the fundamental design behind Ceres Power's metal supported
fuel cell technology, and provides the Company with a crucial springboard in the
key US market.

North America offers a substantial marketing opportunity for the Company's
unique fuel cells, which can generate electricity using natural gas as well as
hydrogen.

Ceres Power Chief Executive Peter Bance said: 'This important patent was
successfully granted unaltered and unopposed, underscoring how even in the
highly active US fuel cell market Ceres' technology is revolutionary.  We are
pleased to have secured the patent just as we begin to generate initial
commercial revenues through co-development and testing trials with global
industrial giants, including a large American engineering firm.'

Mr Bance added: 'Securing a strong patent position in each of our target
territories is a key part of our growth plans.  With our core patent now in
place in the US, we have the protection we need to exploit our technology in one
of the industry's most sought after markets.'

The Company currently has a pipeline of more than 10 patents and trademarks with
the potential for worldwide geographic coverage.

Background information

Fuel cells are devices that produce clean, silent electricity and heat for a
wide range of market applications.  Ceres Power's fuel cells can also be
manufactured using widely available low cost materials and mass production
techniques.

Ceres Power has spent more than 12 years developing and proving its breakthrough
technology which is being designed for use in a number of products, such as
combined heat and power boilers for the home, and stand alone generators.

For further information contact:

Peter Bance, Chief Executive, Ceres Power Ltd:          [phone]
Allan Piper: First City Financial Public Relations:     [phone]
                                                        [phone]
Jag Mundi, Numis Securites Ltd:                         [phone]






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