Proton Energy Systems Featured at President Bush's Hydrogen and Fuel Cell Expo

    WALLINGFORD, Conn., Feb. 7 -- Proton Energy Systems, Inc. , a leader in hydrogen generation
and fuel cell technology and products, participated in a White House-sponsored
event yesterday to promote President Bush's $1.2 billion Freedom Car and Fuel
initiative.
    Proton exhibited the HOGEN(R) RE hydrogen generator that incorporates a
patent-pending interface capable of producing hydrogen fuel from water and
electricity generated by renewable technologies and was one of an invited
group of companies chosen to represent the fuel cell industry at the expo.
This event was held at the National Building Museum in Washington, D.C.
President Bush, U.S. Secretary of Energy Spencer Abraham, and members of
Congress attended.
    Bush stressed the need to create a hydrogen supply infrastructure and in
his speech said, 'The new effort that we're undertaking with Congress' help is
to develop a system for producing and delivering hydrogen fuel so that when
the cars are ready, people can fill them up at their convenience.'
    Proton's President and CEO Walter "Chip" Schroeder stated, "We believe our
products will play a key role in developing the hydrogen infrastructure
envisioned by the President.  Our products are capable of generating hydrogen
wherever water and electricity are available.  When the electricity to run our
hydrogen generators comes from solar, wind, or hydro power, our technology
will serve as the bridge between renewable resources and transportation fuel
markets, enabling a truly sustainable energy future."

    Proton Energy Systems, Inc. ( http://www.protonenergy.com ) designs,
develops and manufactures Proton Exchange Membrane, or PEM, electrochemical
products that it employs in hydrogen generating devices and in regenerative
fuel cell systems that function as power generating and energy storage
devices.  Proton's HOGEN(R) and FuelGen(TM) hydrogen generators produce
hydrogen from electricity and water in a clean and efficient process using its
proprietary PEM technology.  Proton is currently manufacturing and delivering
HOGEN(R) hydrogen generators to customers for use in commercial applications.
Proton's UNIGEN(R) regenerative fuel cell systems, which it is currently
developing, will combine Proton's hydrogen generation technology with a fuel
cell power generator to create an energy device that is able to produce and
store the hydrogen fuel it can later use to generate electricity.

    This press release contains forward-looking statements for purposes of the
safe harbor provisions under The Private Securities Litigation Reform Act of
1995. Statements contained herein concerning Proton's goals, guidance, revenue
projections and other statements that are not statements of historical fact
may be deemed to be forward-looking information.  Without limiting the
foregoing, words such as "anticipates," "believes," "could," "estimate,"
"expect," "intend," "may," "might," "should," "will," and "would" and other
forms of these words or similar words are intended to identify forward-looking
information. Proton's actual results may differ materially from those
indicated by these forward-looking statements as a result of various important
factors. Proton disclaims any obligation to update these forward-looking
statements. Factors that could cause results to differ materially from those
contained in Proton's forward-looking statements include, but are not limited
to, our failure to complete development of our products, failure of our
products to achieve commercial acceptance, our inability to expand our
production facilities, manufacture our products at commercially acceptable
costs or establish distribution relationships, the impact of competitive
products and other factors detailed in our Form 10-Q for the quarter ended
September 30, 2002 and other filings made from time to time with the SEC.

    FuelGen(TM), HIPRESS(TM), HOGEN(R)  and UNIGEN(R) are Trademarks and/or
Registered Trademarks of Proton Energy Systems, Inc.