AFC Energy Regulatory News (AFC)

24 Oct 2007 07:00

AFC Energy Plc24 October 2007 NEWS RELEASE 24 October 2007 Technological milestone achievement signals completion of phase one of AKZO Nobel agreement AFC Energy Plc, ("AFC Energy" or the "Company"), the low cost alkaline fuel cellcompany, is pleased to announce that it has successfully achieved the 500 hourtrial of a fully scaled single cell unit as detailed in the Company's AdmissionDocument dated 18 April 2007. The fully scaled single cell mirrors the size of the cells that will be used inthe 3.5kW, 50kW and 200kW systems where multiple cells will be connected togenerate higher outputs. The achievement of this third technological milestone, which has been reachedwithin the timescale set out in the Company's Admission Document and with betterdurability of the cell than forecast, completes the initial phase of the AKZONobel agreement. The Company will now progress to phase two with its next technologicalmilestone: the development of the complete fuel cell system, due to be completedby the end of January 2008. Following that, AFC Energy will move towardsmulti-system production in order to fulfil the final part of its contract withAKZO Nobel later next year. AFC Energy expects to provide its first fuel cellsto AKZO Nobel by August 2008. Gerard Sauer, Chief Executive, AFC Energy plc, said: "AFC Energy is one of few fuel cell companies which has a focus on theindustrial sector and has a direct relationship with the product's end user; inour case AKZO Nobel. AFC Energy's fuel cells will reduce its customers energycosts from the moment they are switched on. The electricity produced by theby-product hydrogen can either be sold or re-used making an immediatecontribution to the customer's bottom line. "Reaching this important milestone of the fuel cell systems' development meansthat we have successfully completed phase one of our partnership with AKZONobel, and we look forward to the next stage of our agreement as we move closerto delivery of our first fuel cells in August 2008. " - Ends - For further information please visit www.afcenergy.com or contact: AFC Energy plc 01483 276 726Gerard Sauer, Chief Executive Blue Oar Securities - Broker 020 7448 4400Shane Gallwey Nabarro Wells & Co. Limited - Nominated 020 7710 7400AdviserRichard Swindells / Anthony Rowland Madano Partnership 020 7593 4000Mark Way / Graham Moonie This information is provided by RNS The company news service from the London Stock Exchange