Hydrogenics (Fuel Cell Membranes)Receives Initial Order From Major European Automotive Manufacturer

TORONTO, July 15- HYDROGENICS CORPORATION, a designer and manufacturer of proton exchange membrane (PEM) fuel cell technology, today announced that Hydrogenics' test systems have been selected by a major European automotive company to support the client's expanding fuel cell activities. This initial order totals approximately $US 1 million and includes test systems for fuel cells and combined fuel cell/reformer systems.

EnKAT GmbH, Hydrogenics' wholly-owned subsidiary based in Gelsenkirchen, Germany, played a key role in securing this contract. Hydrogenics acquired EnKAT in April of this year. This contact highlights the synergies of the EnKAT acquisition as the combined equipment order will be manufactured out of Hydrogenics' Canadian and German operations.

In April 2002, Hydrogenics unveiled a new generation of test equipment with many advanced features for the optimization and rigorous testing of fuel cells. These systems are particularly well suited for automotive grade testing requirements and comprise some of the equipment selected for this contract.

"We are pleased that our new client has recognized the high standard of quality of Hydrogenics' test systems," said Pierre Rivard, President and CEO of Hydrogenics. "Landing a first time FCATS sale is a considerable achievement and we welcome the opportunity to build and support this new client within the framework of our recently acquired European operations. From this accessible central European location we combine our sophisticated fuel cell equipment with strong after-sales technical support for new and existing European customers. This approach often creates further business opportunities as well as valued long-term relationships."

About Hydrogenics

Hydrogenics Corporation (http://www.hydrogenics.com) is dedicated to the design and development of commercial PEM fuel cell systems for transportation, stationary and portable power applications. With its first commercial product line of fully integrated fuel cell test systems, the Company has established a leadership position in fuel cell balance-of-plant and operating system technology. The knowledge, expertise, and relationships that Hydrogenics has established from this early R&D product market are providing the foundation for the development and manufacture of fuel cell power modules and fully integrated power generators. Hydrogenics' 95,000 square foot headquarters and R&D facility is located in Mississauga, Ontario, Canada. The Company also has Asia-Pacific operations in Tokyo, Japan, a facility in up state New York, and European operations based Gelsenkirchen, Germany. Hydrogenics is a member of the GM alliance of fuel cell commercialization companies.