Contract

21 Apr 2008 07:01

Proton Power Systems PLC21 April 2008 Press Release 21 April 2008 Proton Power Systems plc ("Proton Power" or "the Company") Proton enters partnership with major auto engineering company Proton Power Systems plc (AIM: PPS), a leading designer, developer and producerof fuel cells and fuel cell electric hybrid systems for the "back to base"market, today announces that its wholly owned subsidiary, Proton Motor Fuel CellGmbH ("Proton Motor"), has signed a framework contract with AVL List GmbH, aleading Austrian automotive engineering company, to collaborate on thedevelopment of fuel cell hybrid systems and related measurement technology. Under the contract Proton and AVL will share their expertise in engineering andsimulation, improving the overall customer benefit. AVL and Proton Motor intendto co-operate very closely in the partnership, where AVL will serve as thepowertrain engineering and measurement technology provider while Proton Motorwill be the proton exchange membrane (PEM) fuel cell system provider. Thecontract establishes the formal basis for the expected joint activities of thetwo companies and will accelerate the offer and order procedure, as well assetting the parameters for intended project contracts. The framework contractwill last for three years, with the option to extend. AVL has been active in the development of hybrid drives for over 15 years and isamongst the leading companies promoting and integrating hybrid systems intovarious types of vehicles. More specifically, the "back to base" applicationstargeted by Proton Motor - such as materials handling, utility vehicles and masstransport can be commercialised at an early stage as they do not depend on theexistence of a ubiquitous hydrogen infrastructure. As an example of such anapplication, Proton Motor unveiled in September 2007 the world's first "triple-hybrid" forklift truck incorporating a supercapacitor and battery into anintelligent fuel cell system. AVL sees the hybrid as an undisputed, emerging technology in the vehiclesmarket, as is evident in the product development strategies of all majorautomobile manufacturers. Moreover hybrids involving fuel cell systems areparticularly suited for special on-road and off-road applications as has beenshown by Proton already. AVL is therefore delighted to be working with ProtonMotor to further develop this important technology for mobile applications. Felix Heidelberg, CEO of Proton Power Systems plc, said: "We are proud to be apartner of such an established and well known name in the automotive industry;the partnership is a testament to the success of the Proton Power team inestablishing our technical credentials. AVL's commitment clearly affirms us as aleading developer of hybrid vehicle systems. With the joint framework now inplace, we look forward to accelerating the conversion of our numerous businessleads into purchase orders in the immediately foreseeable future." - Ends - For further information:Proton Power Systems plcFelix Heidelberg, CEO Tel: +49 (0) 89 1276265 0f.heidelberg@proton-motor.de www.protonpowersystems.com Noble & Company LimitedAndy Yeo / Nick Athanas Tel: +44 (0) 20 7763 2200 www.noblegp.com Media enquiries:Abchurch Communications LimitedJustin Heath / Monique Tsang Tel: +44 (0) 20 7398 7712monique.tsang@abchurch-group.com www.abchurch-group.com About Proton Power Systems plc Proton Power Systems plc is a developer of fuel cells and fuel cell hybridsystems for motive and back-up power supply. Proton Power has more than 13 yearsof experience in the fuel cell market. Through its wholly owned subsidiary,Proton Motor Fuel Cell GmbH, the Company has developed and produced a fuel cellmodule running on hydrogen and integrated this with an energy storage system tocreate a hybrid electric fuel cell system. The system harnesses the excess powergenerated by the fuel cell during partial load (such as stop-start operations)and uses the stored energy in peak demand times. The system thus boasts lowerfuel consumption and more consistent levels of power delivery than conventionalcombustion engine or fuel cell-only systems, in addition to producing zeroharmful emissions. Proton Power's market focus lies in industrial applications where 'back-to-base'refuelling occurs at the end of each shift or work period, such as in thematerials handling and mass transportation sectors. In these markets, thecommercialization of applications is possible at a very early stage, as they donot depend on the existence of a ubiquitous hydrogen infrastructure. Throughpartnerships with leading OEMs such as Skoda and Linde, Proton Power'stechnology is already deployed in city buses and forklift trucks. Proton Power also targets the upcoming market for marine transportationapplications and provides the hybrid fuel cell propulsion system for Europe'sfirst fuel-cell-powered passenger ferry, which will be operating in Hamburg fromsummer 2008. Proton Power Systems plc was admitted to trading on AIM on 31 October 2006 andis based in the UK. Its operating subsidiary, Proton Motor Fuel Cell GmbH, islocated in Puchheim, near Munich, Germany. About AVL List GmbH AVL is the world's largest privately owned and independent developer ofpowertrain systems for internal combustion engines and engine instrumentationand test systems for engine and vehicle testing. AVL has been active in the development of hybrid drives for over 15 years andhas expanded capacity significantly in recent years to meet a rapidly increasingdemand for development and testing solutions. It has completed over 60 hybridpowertrain development and testing projects at its engineering centres in Europeand the US for customers around the globe. Further, after the year 2000, AVLestablished a fuel cell system engineering team supporting the development ofPEMFC and SOFC systems as well as the integration and control in mobileapplications. Founded in 1946 and based in Graz, Austria, AVL employs 3640 people and isrepresented in 45 countries worldwide. In 2006 the company had a turnover of537 million Euros. This information is provided by RNS The company news service from the London Stock Exchange