Technical Update

ITM Power PLC
01 July 2005



1 July 2005

                                  ITM POWER PLC
                            ('ITM' or 'the Company')
                                        
                                        
                                Technical Update
                                        
ITM Power Plc, which aims to provide enabling technology for the hydrogen
economy, announced at the time of its flotation in June 2004, a number of
important milestones for the Company that, if achieved, would indicate to
investors its progress. The Company is pleased to announce today that it has
successfully achieved the first of these milestones: the production and
demonstration of a 20W flexible fuel cell stack. This has potential use for both
military and civilian applications.

This device has been constructed using the patented ITM materials and production
processes, which can operate successfully, producing in excess of 20W on a
demanding trial cycle over a period in excess of three days (72 hours is one of
a number of UK and US military targets for fuel cell operation).

The fuel cell has been shown to meet rapidly varying demands for different power
outputs while returning to 20W on demand. Although the operating stack was only
completed in mid June, the materials, ionomer and electrode/catalyst have been
tested using the same fuels for periods exceeding 200 hours without significant
degradation and thus the Company is confident of being able to meet the
published targets for military operations.

The present device operates using two liquids, a liquid fuel and a liquid
oxidant. Using two liquids enables the device to operate at high altitudes, such
as in an aircraft; in polluted environments (including the presence of carbon
monoxide in atmospheric air), as well as underwater. However, the Company's
technology is not limited to these fuels and is able to accept a wide range of
other fuels as may be necessary for different applications.

In addition, the Company has demonstrated an individual cell, which very clearly
demonstrates the flexibility of the structural components necessary for the
production of a complete stack. This device, comprising a composite membrane
electrode assembly (cMEA(R)TM), made by the ITM proprietary 'one-stop' process,
forcefully demonstrates the potential of the ITM materials and production system
to produce unique fuel cell structures and complete stack architectures of
entirely novel design.

The importance of this flexibility is that it enables the production of a light
weight vibration resistant system which can be made in almost any shape and then
further bend to conform to the shape required whilst in use, for example in a
unit to be carried comfortably on an operator's back as a power supply for
personal use by the military or civilian emergency services.

Jim Heathcote, CEO of ITM Power said: 'ITM has demonstrated its ability to take
innovative science and produce a working device on time and on budget, which the
directors believe bodes well for the Company with regard to meeting future
technical and commercial objectives.

ITM's strategy is to maximise shareholder value by establishing a valuable
portfolio of intellectual property that can be licensed. The ability to take
basic chemicals right through to demonstration devices whilst controlling
(through the patent system) materials, processes and production techniques
highlights the value and importance of our work. We believe that the advances
that we continue to achieve are unique and have great potential value.

Our commercialisation strategy is to focus on identifying early adopters who
have an urgent need for a solution to their requirements. The 20watt fuel cell
is our first milestone and we believe the military and emergency services will
be amongst the very first customers for fuel cells. Civilian applications may
follow but these will require significant additional product development and
longevity testing.'
                                        
                                     -Ends-


Notes to Editors:
As of June 2005, ITM Power plc is a constituent of the AIM 100 index.
Demonstration video can be seen on www.itm-power.com


For further information please contact:
Gemma Chandler
Tavistock Communications
Tel: [phone]






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