Patent Update

ITM Power PLC
08 September 2005


8 September 2005


                                 ITM POWER PLC
                            ('ITM' or 'the Company')

                  ITM POWER'S CORE PATENT APPLICATION ALLOWED

ITM, which aims to provide enabling technology for the hydrogen economy, is
pleased to announce that the European Patent Office has formally allowed ITM's
core patent application on electrochemical cells using hydrophilic polymers. The
European Patent should be granted within the next few months and ITM intends to
make the European Patent effective in all major EU States.

The application now allowed by the European Patent Office covers both low cost
materials and novel manufacturing processes used separately or in combination to
produce membrane electrode assemblies for use in electrochemical cells including
fuel cells and electrolysers.

Jim Heathcote, CEO, ITM Power said: 'This will significantly increase ITM's
ability to protect and control its core technology and the scope of our
intellectual property portfolio.  It also acts to complement the existing GB
Patent (no. 2380055).'


-ends-


For further information please contact:

Jim Heathcote       Gemma Chandler            Richard Swindells / Katherine Roe                                         
ITM Power Plc       Tavistock Communications  Panmure Gordon & Co
Tel: [phone]  Tel: [phone]        Tel: [phone]




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 a critical element in the
    energy economy of the future.
  • 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 fulfill 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 (which can be stored) and
oxygen and in turn fuel cells, via a similar process convert hydrogen and oxygen
into electricity and water.

ITM announced in November 2004 that it had successfully produced and tested a
Mark III electrolyser stack, which has been operated at a power rating in excess
of 200 Watts and are confident that the Company is well on track to achieve
their milestone of 500 Watts by June 2006. On the basis of these results, The
Generics Group, an independent scientific consultancy, have estimated that in
mass production it is possible to achieve $283 per kW. This closely approaches
the 2010 US Department of Energy target of $300 for an electrolyser stack.

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 believes it has developed and patented the keys to revolutionise
the hydrogen economy and is set to become one of the UK's leading innovators
within the alternative energy sources industry.

ITM's ionically conductive polymer materials and manufacturing processes are
used in the production of fuel cells and electrolysers, which are significantly
cheaper than those presently used in production.  The technology offers high
conductivity, hydration control and has the benefit of catalyst recycling.  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 has patented a new manufacturing process that allows a fuel cell/
electrolyser stack of cells to be made in a single process similar to a mass
production casting process.   The process is capable of producing cells or
stacks of any shape that may also be flexible so that they can be moulded into
smaller products, such as mobile phones. The Company has applied this technology
to 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.



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