Agreement

ITM Power PLC
04 December 2006


Monday, 4 December 2006

                                 ITM Power Plc
                            ('ITM' or 'the Company')

                                   Agreement

ITM Power announces today that it has signed a Memorandum of Understanding
('MoU' or/and the 'Agreement') with ABRO, a Trading Fund of the Ministry of
Defence which maintains vehicles and equipments owned and operated by the
British Armed  Forces, and in addition offers a maintenance service to
commercial organisations  including Emergency Services,  Local Authorities and
Airports. The joint  objective of the parties is to use ITM's technology to
develop equipment which  improves the capability (fuel efficiency and/or
pollution control) of diesel  engines operating in military and civilian
environments.  Field trial testing of  the developed equipment will be carried
out.

The purpose of the Agreement is to provide the basis which will allow both
parties to collaborate, share expertise and combine their respective core
abilities to develop a number of equipment packages. These equipment packages
will be designed for retro fitting to specific vehicles and will be rigorously
tested to establish the operational and commercial potential in a range of
military and civilian scenarios. The two organisations anticipate that
significant mutual commercial benefits will result from the successful
completion of this programme.

The combination of ITM's unique low cost electrolyser systems to supply hydrogen
for use in diesel engines and ABRO's unrivalled experience and facilities in the
engineering and maintenance of vehicles of all sizes and types could provide an
early route to the acceptance and application of this technology in both the
military and civilian arenas.

Subject to the production of satisfactory results from field trials, ITM and 
ABRO will progress into detailed discussions with the intention of entering a 
formal commercial exploitation arrangement.

Jim Heathcote, CEO, ITM Power Plc, said: 'We are delighted to be working with 
ABRO. I believe that the collaboration between our two organisations brings 
together complimentary abilities that could provide significant commercial 
opportunities for both parties.'

Peter Moore, ABRO's Chief Executive added 'This agreement is excellent news, 
the collaboration will bring together ITM's low-cost electrolyser technology and
extend our engineering expertise, developing our fleet service provision to 
include green technology.  I am optimistic that the signing of this agreement 
will act as a springboard for greater opportunities in the near future.'

Ends

For further information please contact:

Gemma Chandler
ITM Power Plc
Tel: [phone]
Mob: [phone]
www.itm-power.com.

Claire Lloyd-Hickey
ABRO
Tel: [phone]
Mob: [phone]
www.abro.co.uk

Notes to Editors

About ABRO

ABRO is a Trading Fund of the MoD offering fleet management services including
service, repair, and re-manufacturing, primarily to the British Armed Forces but
also, emergency services, local authorities, airports and industry.

Capabilities range from small arms to main battle tanks, and commercial fleet
vehicles to thermal imaging equipment. Operating from a range of strategically
located sites, ABRO employs 2,100 staff, handling an annual turnover of work in
excess of £137 million.

About ITM Power Plc

ITM Power Plc has developed and patented low-cost hydrogen technologies. ITM
Power has been developing new materials and processes that dramatically reduce
the cost of fuel cells and electrolysers. The patented membrane materials used
in the devices have higher performance and are 1% of the cost of the industry
standard materials.

Electrolyser:
An electrolyser converts water and electricity into hydrogen and oxygen. These
gases can be used as fuel for combustion engines, fuel cells, heating and
conventional electricity generation.

ITM's unique patented technology has allowed ITM to achieve cost/performance
targets which in production would equate to electrolysers stack costs as low as
$164/per kW. These technical breakthroughs simultaneously solve the cost and
infrastructure barriers to the use of hydrogen as a competitive fuel.





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