PPS to build Skoda bus

Proton Power Systems PLC
05 February 2007



    PPS starts work on fuel cell hybrid system for Czech city bus with Skoda


February 5, 2007... Proton Power Systems plc ('PPS'), one of the world's leading
electric hybrid fuel cells companies, today began work on a €3.0 million
contract for a city bus project launched in the Czech Republic. Developed in
collaboration with Skoda Electric Pilsen, a leading manufacturer of
trolleybuses, the new electric bus will operate in the Prague vicinity in 2009.

PPS, through its subsidiary, Proton Motor (PM) will develop a fuel cell system
for the bus using technology based on its dedicated bus fuel cell application.
The deal, which is subject to commercial contract terms being signed, will
generate revenue of approximately €1.1 million for PM over the course of
approximately the next 24 months.

The project called Fuel Cells Czech Hydrogen-Bus (FCZ H2-BUS) is funded by the
European Commission, as part of its infrastructure funding programme, and other
Czech institutions. The Czech Nuclear Research Institute (UJV Rez ) is acting as
project coordinator, working with other Czech Republic partners.

Felix Heidelberg, PPS' Chief Executive Officer, said, 'Cities across Europe are
looking at ways to provide clean and efficient transportation to reduce carbon
dioxide emissions and help stem climate change. Our fuel cell technology
provides both the environmental and the technical solution to do this.

'Short distance transport fleets, like buses, can benefit from our hybrid fuel
cell technology, which includes energy storage systems capable of providing
power during peak demand situations and recovering braking energy. Following our
bus projects in Germany, we hope this development with Skoda is the first of
several such projects in cities across Europe.'

Dr. Ladislav Sobotka, Executive & Development Director of Skoda Electric s. r.
o., Plzen said, 'Based on our experience with trolley buses we see excellent
opportunities to equip further buses with PM's fuel cell system in future'


For further Information contact:

Media:
Gavin Anderson & Company                                 [phone]
Ken Cronin                                                  Marie Cairney
[e-mail]                  [e-mail]

Commercial:
Proton Power Systems                                   [phone]
Joachim Kroemer
[e-mail]


Notes to Editors

PPS, through its subsidiary Proton Motor Fuel Cell GmbH ('PM') has developed and
produced a standard fuel cell module, fuelled by hydrogen integrated with an
energy storage system to create a hybrid electric fuel cell system capable of
providing power during peak demand situations. The market focus is on industrial
applications where 'back-to-base' refueling occurs, on site, at the end of each
shift or work period.

The Group has identified opportunities to replace lead-acid batteries with their
PEM fuel cell systems and has identified niche markets in the materials handling
and mass-transportation sectors where hybrid electric fuel cell systems offer
considerable advantages over conventional engine technology and fuel cell only
drive systems. The Group has identified two initial market segments in which the
Directors believe the advantages of hybrid electric fuel cell systems will lead
to economic benefits for the end user - forklift trucks and buses. In most
cases, vehicles operate within a defined radius or return to central points of
operation.

The many advantages over current commercial alternatives include lower fuel
consumption, longer periods between refueling, shorter refueling, consistent
levels of power delivery and zero harmful emissions.

PM's technology development has been undertaken with the key objectives of
multiple applications and volume production.

PPS listed on the Alternative Investment Market (AIM) on October 31, 2006.




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