Proton Mtr Pwr Regulatory News (PPS)

Proton Power Systems plc

("Proton" or the "Company" or the "Group")

Proton Motor Fuel Cell to be deployed by E.ON at the Bachhausen substation

For the first time in Bavaria, a fuel cell is being installed to meet a power grid substation's own power needs replacing conventional batteries. Each grid substation requires a grid-independent auxiliary power supply with a minimum ten-hour runtime to ensure switching operations to restore power during a blackout. Modl GmbH from Pappenheim and network operator E.ON Bayern AG are collaborating in this pilot project to install a Proton PM Module S5 at the Bachhausen substation.

The fuel cell module is based on current Proton stack technology. The module has a power output of 5 kW which can be accessed continuously over a long period depending on the hydrogen store.

E.ON Bayern AG, as an innovative company in the field of energy supply, is providing the infrastructure in the substation in order to test and develop the use of fuel cells in secure auxiliary substation power systems together with Modl. The use of fuel cells reduces the space needed for auxiliary systems and extends the potential runtime during a power failure, including the possibility of refueling the hydrogen supply. The use of hydrogen as an energy carrier is largely intended to avoid the use of batteries.

The substation in Bachhausen was completed in 1991 and supplies the surrounding municipalities and the pumping station of the Main-Danube canal. It was selected for the project because it has the appropriate infrastructure and is easily accessible for demonstration and testing purposes by the participating partners.

Faiz Francois Nahab PhD, CEO of Proton, commented: 'We are pleased to be participating in this pilot project as a partner of E.ON AG. It's a great success for Proton, that a major energy provider such as E.ON AG is relying on the PM Module S5 in managing their power grid and in a critical application ensuring the supply of electricity to consumers. We are ready for more projects of this kind and hope to implement them soon.'

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Proton

Proton is an expert in industrial fuel cells, and fuel cell and hybrid systems with more than 17 years of experience in this sector. Based in Puchheim near Munich, Proton offers complete fuel cell and hybrid systems from a single source - from development and production through to the implementation of customised solutions. The focus of Proton is on back-to-base, for example, for mobile, marine and stationary solution applications. The product portfolio consists of base-fuel cell systems, standard complete systems, as well as customised systems. The company has been listed on the London Stock Exchange since October 2006 (code: PPS).