Proton Mtr Pwr Regulatory News (PPS)

Proton Power Systems plc

("Proton Power" or the "Company")

Conversion of convertible loan

Proton Power (AIM: PPS), the designer, developer and producer of fuel cells and fuel cell electric hybrid systems, announces that Roundstone Properties Limited ("Roundstone Properties") has requested to convert the convertible loan of circa £8.83 million held by it and interest cumulated thereon into 437,404,580 new ordinary shares of 1 pence each ("Ordinary Shares").

Application will be made for the 437,404,580 new Ordinary Shares to be admitted to AIM and it is expected that admission will be effective on 21 October 2011 ("Admission").

Following Admission of the 437,404,580 new Ordinary Shares, Roundstone Properties will own 579,236,349 Ordinary Shares representing approximately 93.5 per cent. of the Company's enlarged issued share capital.

John Wall, non-executive Chairman of the Company said: "Conversion of the loan will allow us to simplify the presentation of our accounts by removing non operational gains and losses from our financial results and will result in a market capitalisation which more closely reflects the total investment made by Roundstone Properties and others in the Company. Going forward, we intend to fund ourselves through issues of equity and would be delighted if other investors were interested in investing alongside Roundstone Properties in this exciting opportunity.

"Our own stack development and production capabilities give us a unique market position and a competitive advantage in comparison to our competitors in Europe, which are mainly integrators using stacks produced in North America."

Total Voting Rights

Following Admission of the 437,404,580 new Ordinary Shares, the total number of issued Ordinary Shares in the Company will be 619,395,443 Ordinary Shares. The Company does not hold any Ordinary Shares in treasury. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Service Authority's Disclosure and Transparency Rules.

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