First Day of Trading

ITM Power PLC
11 June 2004

                  ITM POWER PLC ('ITM POWER' OR THE 'COMPANY')


               ITM POWER COMMENCES TRADING ON AIM FRIDAY 11 JUNE
      £10 MILLION RAISED THROUGH PLACING OF 20,000,000 NEW ORDINARY SHARES
                              OFFER OVERSUBSCRIBED


ITM Power, which provides the enabling technology for the hydrogen economy,
announces that its ordinary shares have been admitted to trading on AIM today
under the epic ITM.



ITM Power has successfully raised £10million before expenses, following a
placing with institutions and other investors by its Nominated Adviser and
Broker Durlacher Limited of 20,000,000 new ordinary shares at 50p per share.
The offer was oversubscribed and Durlacher closed the book a week early.  The
Company's market capitalisation at the placing price is £45.7million.



The newly issued shares represent approximately 22% of the Company's issued
share capital upon admission to trading on AIM. The proceeds of the placing will
be used to develop ITM Power's products and technology and to protect the
Company's intellectual property.



Jim Heathcote, ITM Power's Chief Executive said:  'We were delighted to be able
to close our placing over a week early having received an excellent reception
from UK and European investors and are extremely pleased with the prestigious
shareholders that have decided to back us at this exciting stage in our
development.



'We believe that the potential market for our technology is enormous and that
our unique materials and production methods will enable the manufacture of both
fuel cells and electrolysers to be carried out at economically viable levels.
We are very excited about the Company's future and believe that we have the team
and technology in place to build a strong and profitable business.'



- Ends -



For further information please contact:


Jim Heathcote                     David Rae / Katherine Roe         John West  / Gemma Smith
ITM Power Plc                     Durlacher Limited                 Tavistock Communications
Tel: [phone]                 Tel: [phone]                Tel: [phone]
e-mail: [e-mail]                                           e-mail: [e-mail]



Notes to Editors:



About the hydrogen economy and ITM Power:



ITM is a leading technical innovator of fuel cell and electrolyser technologies
for the hydrogen economy.



The future shape of the energy industry is being driven predominantly by the
growth in the global demand for energy, the diminishing reserves of oil and by
the environmental impact of burning fossil fuels.



Hydrogen Economy:



  • Term used to describe the use of hydrogen as the economy's main source of
    energy
  • Benefit of hydrogen is that it has the potential to a be a totally 'clean'
    source of fuel
  • The vision is that low cost electrolysers produce hydrogen from 'clean'
    energy sources such as solar, wind and wave and fuel cells use this hydrogen
    to produce the electricity when its required



'If all the sunlight hitting the earth's surface in one hour was harnessed and
converted into electrical power, it would be enough to fulfil mankind's energy
needs for a complete year' - BP Solar



Electrolysers, via an electrochemical process, convert electricity (from
renewable energy inputs) and water into hydrogen and oxygen and in turn fuel
cells, via a similar process convert hydrogen and oxygen into electricity (which
can be stored) and water.



PEM fuel cells developed so far are currently estimated to cost several thousand
dollars per output kW (for example, in February 2004, the US Department of
Energy estimated the current cost of a fuel cell to be approximately $3,000 per
output kW) whereas petrol engines are currently estimated at $50 per output kW.



ITM's Technology



ITM Power plc has developed and patented the keys to revolutionise the hydrogen
economy and is set to become one of the UK's leading innovator within the
alternative energy sources industry.



ITM's electrically conductive polymer materials and manufacturing processes are
used in the production of fuel cells, which are significantly cheaper than those
presently used in production.  The technology also offers high conductivity,
hydration control and has the ability to recycle the platinum catalyst, which
aids the formation process of the cell.  The Company has the ability to produce
low cost fuel cells that meet the energy demands of a wide range of industries
and specialist technologies including military, automotive and stationary fuel
cell markets as well as the capacity to produce household items such as laptops,
mobile phones and domestic appliances.



ITM's patented manufacturing process allows a fuel cell or an entire stack of
cells to be made in a single process.  The proprietary polymer membrane is a
thin sheet that allows hydrogen ions to pass through it.  The membrane is coated
on both sides with metal alloy particles (such as platinum) and is inserted at
the heart of the fuel cell.  The process is capable of producing a flexible
shape that can be moulded for smaller products, such as mobile phones.



The Company has also developed a low cost electrolyser that can convert carbon
free energy into clean hydrogen fuel on site and on demand, therefore completing
the circle of the manufacturing process.



ITM's plan is based upon three core targeted development programmes, utilising
its patents, which it is intended will run in parallel:



  • development of flexible ''shock resistant'' SPE fuel cells using ITM's
    materials and in situ manufacturing process, with power outputs of 20W;
  • development of rigid SPE fuel cells using ITM's materials and traditional
    fuel cell manufacturing process with a power output of 250W; and
  • development of an electrolyser with a 500Winput power rating.



ITM has already produced and tested working but low rated laboratory examples of
devices which represent starting points for two of the three targeted programme
areas.



ITM anticipates that from these three programmes, application-specific
prototypes will be developed.  These prototypes will be used as demonstration
units to help secure licence agreements and joint venture programmes.



ITM envisages that revenues will primarily be generated via four main avenues:

  • joint ventures;
  • licensing;
  • grant funding; and
  • niche manufacturing opportunities.



On admission to AIM the following shareholders have an interest in 3 per cent.
or more of the Company's issued share capital:


                                                                                Percentage of issued share
                                                                                capital on admission
Shareholder                                          Number of shares
Dr Donald Highgate1                                  14,000,000                 15.32
Dr Jonathan Lloyd1                                   14,000,000                 15.32
John Wreford1                                        14,000,000                 15.32
RAB Special Situations L.P.                          8,825,000                  9.66
Peter Hargreaves1                                    5,045,180                  5.52



1 a director of ITM Power Plc








                      This information is provided by RNS
            The company news service from the London Stock Exchange