Technical Update

ITM Power PLC 06 February 2006 Embargoed, for release at 0700, 6th February 2006 ITM Power Plc ('ITM' or 'the Company') Technical Update- Longevity Testing of ITM's Electrolyser Materials ITM Power is pleased to announce that it has tested its membrane material in an electrolyser for a period in excess of 1500 hours without any external evidence of failure. ITM's technology is based upon the use of its proprietary hydrophilic ionic materials and in October 2005 it announced that it had 'operated its hydrophilic membrane in an electrolyser for a period in excess of 500 hours' while in January 2006 a further announcement increased this to 1000 hours. In order to be able to produce hydrogen cost competitive with hydrocarbon fuels, the 'cost over life' of the electrolyser is a critical factor. Thus it is a combination of the initial capital cost and longevity (measured under realistic operating conditions) which combine to determine the cost of electrolytic energy production. These tests are ongoing and, as before, are continuing on the basis of the repeated on-off load cycles which the Company considers essential in order to replicate real life requirements. The quoted figure of 1500 hours thus represents time 'on load' in a longer total period 'on test'. ITM Power aims to provide the necessary technology to enable the hydrogen economy to become economically and technically successful as an energy system in competition with and ultimately as the replacement of hydrocarbons. Jim Heathcote ITM's CEO commented 'the continuing excellent performance of ITM's membrane materials when used in an electrolyser is very encouraging, and bodes well for the Company being able to meet its long term commercial objectives; the economic replacement of hydrocarbon fuels using electrolytic hydrogen produced from low carbon primary energy supplies (wind wave solar or nuclear). I believe it is excellent news for our shareholders and justifies our confidence in setting the new technical milestones announced 4 days ago'. -ends- For further information please contact: Jim Heathcote Simon Hudson Tim Linacre ITM Power Plc Tavistock Communications Panmure Gordon & Co Tel: 01799 532860 Tel: 020 7920 3150 / Tel: 020 7459 3600 07787 510 630 or visit www.itm-power.com 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 it's 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 (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 has now achieved its milestone of 500 Watts. On the basis of the Mark III results, The Generics Group, an independent scientific consultancy, have estimated that in mass production it is possible to achieve US$283 per kW. This is below 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 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 DEADKEFE

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