FIAMM, Nuvera to Develop Hybrid Battery / Fuel Cell Power Pack for Industrial Applications in Europe

Worldwide battery manufacturer teams with major fuel cell developer to produce, market, and distribute hybrid propulsion systems for off-road materials handling vehicles

MILAN, CAMBRIDGE, Mass. and MONTECCHIO MAGGIORE, Italy, May 14 -- Nuvera Fuel Cells, Inc., a leading designer and developer of fuel cell power systems, fuel processors, and fuel cell stacks, and FIAMM S.p.A., one of the world's largest lead acid battery manufacturers, today announced they will jointly develop a 7 kW-class hybrid battery / fuel cell power pack for industrial materials handling vehicles. The companies intend to build and market the innovative hydrogen-fueled, zero-emission power pack for forklift trucks starting in 2005.

The new hybrid power pack consists of Nuvera's H2e(TM) power module, FIAMM batteries, a fuel system, a battery management system, and balance of plant components. In addition to being quiet and emissions-free, the FIAMM / Nuvera system offers several advantages over conventional battery systems, including lower operating costs, lower capital costs over 10 years, reduced maintenance, and improved productivity due to high-performance, steady-state operating conditions and the extended range afforded by the fuel cells and their "always on" capabilities, which eliminates the need to swap out batteries for recharging and reduces operator downtime.

"Partnering with a major organization such as FIAMM marks a significant milestone toward realizing our ultimate goal to rapidly commercialize fuel cell products," said C. Roberto Cordaro, Nuvera's President and Chief Executive Officer. "FIAMM not only brings its proven battery products to this relationship, but also established global market channels in the automotive, telecommunications, and materials handling industries. This is a tremendous step forward for our organization and the entire fuel cell industry."

"As a firm that promotes technical and social progress by supplying the clean energy and security needed to keep people, goods, and information on the move, we are very excited about exploring the world of fuel cells with Nuvera," said Giulio Dolcetta, President & Chief Executive Officer of FIAMM S.p.A. "We believe the combined strengths of the two organizations complement each other in a way that makes this venture quite attractive from a customer sales and service perspective. It holds much promise for the future of both organizations."

According to the agreement, Nuvera and FIAMM will engage in a 2-year, 3- phase product development effort that will yield commercially available products as early as 2005. The multi-phase initiative will include product design for manufacturablity, prototype demonstrations, and validation of business models. Upon commercialization, FIAMM will receive exclusive rights to market and sell the hybrid power packs in Europe. Other potential off-road applications for the hybrid system include industrial hauling equipment, baggage tractors, tow tractors, and belt loaders.

Nuvera

Nuvera Fuel Cells (www.nuvera.com) is a leading designer and developer of fuel cellpower systems, fuel processors, and fuel cell stacks for the automotive, distributed generation, commercial, and industrial markets. Since 1992, its fuel processors and PEM fuel cellstacks have been successfully tested and evaluated by major automobile and appliance manufacturers, research institutions, telecommunications organizations, and industrial and energy companies. Nuvera's fuel processors have demonstrated the ability to extract hydrogen from a number of liquid and gaseous fuels, including gasoline, ethanol, methanol, natural gas, kerosene, propane, butane, home heating oil, and diesel.

FIAMM

FIAMM S.p.A. (www.fiam.com) is a global market leader and technology pioneer serving the global markets of automotive, telecommunications, and material handling with a range of products that include automotive, motive power and standby batteries, acoustic vehicle horns, and automotive antennae. Founded in 1942 in Italy, FIAMM has successfully grown its business by diversifying into new products and geographical areas and providing its customers with the highest quality of products and service. Composed of 20 companies and sales offices active in the automotive components and lead acid battery business, FIAMM operates 12 plants located in Europe and the Americas and services customers in more than 150 countries.