Proton Mtr Pwr Regulatory News (PPS)

Proton Power Systems plc

("Proton Power" or "the Group")

Cooperation with SPower for environmentally friendly UPS systems

Proton Power Systems plc (AIM:PPS), a leading designer, developer and producer of fuel cells and fuel cell electric hybrid systems, is pleased to announce that its wholly owned subsidiary, Proton Motor Fuel Cell GmbH, has signed an agreement with SPower GmbH, a specialist in high-quality power protection, to collaborate on the development, market launch and sales of UPS systems supported by fuel cells.

The companies aim to develop and provide back-up solutions combining fuel cell technology with flexible modular UPS systems, which are tailored to customers' specific needs. Following product sales, the companies will provide customer support via a complete service package from fuel logistics to remote system monitoring.

The product portfolio will incorporate:

·; hydrogen supply for Proton Power's proton exchange membrane (PEM) fuel cell modules

·; system cooling

·; fuel cell modules of different power ratings

·; converters and UPS products for DC and AC applications

·; battery packs

·; manual bypasses.

At the Hanover Fair 2010 the companies displayed their jointly developed PM Cube S back-up system, which offers flexibility and modular scalability for long back-up times. It is built into a 19" cubicle with one cubicle offering room for up to 4 fuel cell modules from Proton Motor complete with related electronics and supply units. Combined with SPower's 19" technology, the companies will aim to offer standardized PM Cube UPS systems and after-sales service to customers.

Thomas Melczer, CEO of Proton Power Systems, commented:"The wide application range of our fuel cell technology is enabling us to move more quickly towards commercialisation and production. In this way we are helping to fulfil a growing market appetite for environmentally friendly products while improving the profitability of our business."

Robert Schulte, Managing Director of SPower GmbH, said: "Environmental protection and efficiency are crucial for power protection applications. Our products reliably provide the security demanded. By connecting UPS systems to emission-free fuel cell technology we are directing UPS technology towards the future."

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About Proton Power Systems plc

Proton Power Systems plc is a developer and manufacturer of fuel cells and fuel cell hybrid systems for motive and stationary power supply. Its sales-driven strategy focuses on identifying applications with the greatest market needs and supplying large volumes of cost-competitive systems to fulfil those needs. Proton Power is gaining access to a broad range of markets through partnerships with leading OEMs such as Skoda Electric and Smith Electric Vehicles, in addition to contract manufacturers such as Deutsche Mechatronics.

Proton Power's motive applications include forklifts, city buses, municipal utility vehicles, commercial vehicles and ferries. Stationary applications focus on the Uninterruptible Power Supply ("UPS") sector, where there is a large demand for mission-critical, grid-independent secure power supply in places such as telecommunications stations, data centres, hospitals, and power substations.

Through its wholly owned subsidiary, Proton Motor Fuel Cell GmbH ("Proton Motor"), the Group has developed and deployed fuel cell modules that can be integrated with energy storage media to create hybrid fuel cell systems. Proprietary, intelligent energy management software balances the power output across the system to maximise efficiency and improve power delivery. The system therefore boasts lower fuel consumption and more consistent levels of power delivery than conventional diesel/combustion engine or fuel cell-only systems, while producing zero harmful emissions.

Proton Power Systems plc was admitted to trading on AIM on 31 October 2006 and is incorporated in the UK. Proton Motor has more than 15 years of experience in the fuel cell market and is located in Puchheim, near Munich, Germany.

www.protonpowersystems.com

About SPower GmbH

SPower GmbH, Erlangen is an internationally operating company with high quality products and solutions for optimized and secure power supplies. Their range of services covers the supply of UPS systems, telecom power supplies, industrial power supplies, emergency power supplies, and batteries as well as photovoltaic systems including planning, consulting services and after sales service. Technical ability and understanding ensure the fast and beneficial realization of solutions to meet customer application needs.

www.spower.eu