FuelCell Energy Partner to Begin Operating Direct FuelCell Power Plant In Germany; MTU Division of DaimlerChrysler Will Operate Plant At a Hospital in Germany

    DANBURY, Conn. and BAD NEUSTADT, Germany--May 7, 2001--FuelCell Energy's partner in Europe, the MTU Friedrichshafen GmbH unit of DaimlerChrysler, today began operating a 250 kW Direct FuelCell(TM) (DFC(TM)) power plant at the Rhon-Klinikum Hospital in Bad Neustadt.
    The power plant will be connected to the internal power supply system of the hospital, and will also provide heat energy. It contains DFCs manufactured by FuelCell Energy and configured in a power plant design by MTU.
    "This is another important step for us and our partners at MTU in rolling out field trials at customer sites," said Jerry D. Leitman, FuelCell Energy president and CEO. "The MTU team has taken the time to benefit from the experience of running their first unit at the University of Bielefeld. They are working closely with the technical staff at Rhon to build on that experience and I am confident that this extra effort will produce even better results at the hospital."
    According to Dr. Rolf A. Hanssen, board chairman of MTU Friedrichshafen, fuel cells are poised to take on a major role for electric power generation. "Step by step, fuel cells will take over the functions that current power plants and engines assume now."
    Hospitals represent a promising application of DFC power plant technology because of their high electrical demand, steady load profile and heat requirements. The DFC offers additional advantages including quiet operation, virtually no pollution and very high efficiency. The DFC produces high-quality electricity, which is very important for computer systems and sensitive medical devices that are used by hospitals.
    The power plant being placed into service today will also generate approximately 170 kW equivalent of by-product heat, which can be used to produce high-pressure steam. In hospital and medical settings, this high-pressure steam can be used for sterilization and air conditioning.

    About Direct FuelCells

    Direct FuelCells generate electricity with no combustion. They are, in effect like large, continuously operating batteries that generate electricity as long as fuel, such as natural gas is supplied. Since the fuel is not burned, there is no pollution commonly associated with the combustion of fossil fuels. Also, the high efficiency leads to more electric power from less fuel and with less carbon dioxide emissions.

    About MTU Friedrichshafen

    MTU Friedrichshafen, together with its subsidiaries, forms the Diesel Propulsion Systems Division in the DaimlerChrysler Group and is one of the worldwide leading manufacturers of large diesel engines and complete drive systems. Diesel engines in the 35 to 9,000 kW (50 to 12,240 HP) power range are manufactured for marine propulsion, heavy vehicles, power generation and railroad applications.
    The New Technology Division in Munich-Ottobrunn is cooperating with partners on the next generation of energy transformations with the product development of the Direct FuelCell and a high-performance electrolyzer.

    About FuelCell Energy, Inc.

    FuelCell Energy, Inc. (www.fuelcellenergy.com) is a world-recognized leader for development and commercialization of high efficiency fuel cells for electric power generation. The Company's Direct FuelCell(R) (DFC(R)) technology eliminates external fuel processing to extract hydrogen from a hydrocarbon fuel. This results in a product whose cost, combined with high efficiency, simplicity and reliability, results in product advantages for stationary power generation. FuelCell Energy is based in Danbury, CT. The Company has been developing DFC technology for stationary power plants with the U.S. Department of Energy through the National Energy Technology Laboratory, whose advanced fuel cell research program is focused on developing a new generation of high performance fuel cells that can generate clean electricity at power stations or in distributed locations near the customer, including hospitals, schools, data centers and other commercial and industrial applications.

    This press release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based.