Contract Opens Major New Market to DCH Hydrogen Sensors

VALENCIA, Calif., Jan. 23 DCH Technology, Inc., a manufacturer of hydrogen-specific sensors and hydrogen fuel cells, announced a contract for 12 H2SCAN(TM) sensor systems from Applied Analytics, a supplier to the power generation industry, which will use them as replacements for alternative sensors monitoring hydrogen used to cool large turbine electric generators. The sensor systems will be validated in the field and, upon performing to specification, Applied Analytics said they could purchase up to an additional 200 units by year-end. The first two systems will be shipped next month, and DCH will receive payment upon delivery.

``The significance of this contract is threefold,'' said John Donohue, President and CEO of DCH Technology, Inc. ``One, this represents the first penetration of our hydrogen-specific H2SCAN(TM) sensor systems into the power generation market where thousands of hydrogen sensors are used today. Our sensors offer advantages over existing equipment in terms of accuracy, robust performance, and the elimination of expensive support components.

``Two, we believe the performance of these first few units could lead to significant near-term sales -- both in terms of additional replacement units, but also at the front end of the product development chain where we would realize higher volume sales as original equipment.

``Three, DCH has targeted the power industry as a primary market for our Enable(TM) fuel cells. We are very happy to have established another channel into the industry which we intend to leverage.''

Existing H2SCAN(TM) sensor systems are able to sense hydrogen in air and other gases from 0.5% to 100%. Next-generation H2SCAN(TM) systems DCH anticipates launching this quarter will extend this sensing range down to .005%, which will be best in class. The systems integrate the DCH Robust Hydrogen Sensor(TM) (RHS) with electronics for data gathering, analysis, and communications.