Itm Power Regulatory News (ITM)

13 Nov 2006 13:00

Hydrogen Engine Center, Inc., (HEC) announces today that they havesigned a Memorandum of Understanding ("MoU" or/and the "Agreement")with ITM Power Plc (ITM), one of the UK's leading innovators withinthe alternative energy sources industry. HEC is a US company thatdesigns, manufactures and distributes alternative fuel internalcombustion engines for the industrial and power generation market. Theparties plan to jointly develop products for a non-polluting,grid-independent energy system which can undergo early field trialtesting. £ The purpose of the MoU is to provide a platform from which the twoorganizations can develop their respective technologies resulting inmutual benefits. HEC anticipates that ITM can offer an assured supplyof hydrogen using ITM's low-cost electrolyzer technology. ITManticipates that HEC will provide an early route to the provision of acomplete system package using HEC's proven engine technology. £ The combination of a hydrogen fueled internal combustion engineand a low-cost electrolyzer could provide the essential technology toconvert low-value, intermittent, renewable energy (wind, solar) into areliable, non-fossil energy supply. £ Subject to the production of satisfactory results from the fieldtrials, HEC and ITM will progress into detailed discussions with theintention of entering a more formal commercial arrangement. £ In making the announcement Ted Hollinger, President, HEC, stated,"Both ITM and HEC have been developing technologies over the past fewyears and are now ready to bring them to market. By combining HEC'shydrogen engines with ITM's new low-cost electrolyzer, customers willhave access to turn-key hydrogen-fueled systems." £ Jim Heathcote, CEO, ITM Power Plc, said: "We are delighted to beworking with the team at HEC. I believe that the collaboration of HECand ITM brings together complementary technologies that could providesignificant commercial opportunities for both companies in the NorthAmerican and European markets." £ About Hydrogen Engine Center Inc: £ Hydrogen Engine Center, Inc., designs, manufactures anddistributes alternative-fueled internal combustion engines and powergeneration equipment for distributed power, agricultural, industrial,airport ground support, vehicular, business and home applications. AllHEC engines and Gensets are capable of running on a multitude offuels, including but not limited to, hydrogen, gasoline, propane,natural gas and ethanol. Development of an ammonia-fueled engine isunderway. HEC trades on the Bulletin Board under the symbol "HYEG.OB."Principal offices are located at 2502 E Poplar St., Algona, Iowa50511. Visit www.hydrogenenginecenter.com or in the US dial515-295-3178 for more information. £ About ITM Power Plc: £ ITM Power Plc believes it has developed and patented the keys torevolutionise the hydrogen economy and is set to become one of theUK's leading innovators within the alternative energy sourcesindustry. www.itm-power.com £ ITM Power is quoted on the London Stock Exchange's AlternativeInvestment Market (AIM) under the ticker symbol "ITM". £ Electrolyzer: £ An electrolyzer converts water and electricity into hydrogen andoxygen. These gases can be used as fuel for combustion engines, fuelcells, heating and conventional electricity generation. £ Existing electrolyzers cost in the region of $2,000/kW and the USDepartment of Energy 2010 target is $300/kW for an electrolyzer stack. £ ITM Power has identified low-cost electrolyzers as a vitalcomponent to replace hydrocarbon fuels with hydrogen. ITM's uniquepatented technology has allowed the company to achievecost/performance targets which in production would equate toelectrolyzer stack costs as low as $164 / per kW. £ This press release may contain certain forward-looking statementswithin the meaning of Section 27A of the Securities Act of 1933, asamended, and Section 21E of the Securities Exchange Act of 1934, asamended. Investors are cautioned that such forward-looking statementsinvolve risks and uncertainties, including without limitation,acceptance of the Company's products, increased levels of competitionfor the Company, new products and technological changes, the Company'sdependence on third-party suppliers, and other risks detailed fromtime to time in the Company's periodic reports filed with theSecurities and Exchange Commission. Copyright Business Wire 2006