Palcan Showcases The Future With Fuel Cell Powered Scooter For Global Masses; Palcan's Fuel Cell Scooter Unveiled at Fuel Cell Conference in Vancouver, British Columbia

    VANCOUVER, British Columbia--June 18, 2003--Palcan Fuel Cells is pleased to announce the integration of its 2 Kw fuel cell stack system to power the next global transportation solution. The fuel cell powered scooter is a highly marketable alternative designed specifically to address the world's need for a low-end mass transport vehicle.
    Palcan's unique fuel cell uses the Company's metal hydride hydrogen storage technology to power the scooter. The Asian and European markets are direct targets for Palcan's prototype power supply. It is aimed directly at the market for smaller internal combustion engine (ICE) developed for two and three wheeled applications. These include rickshaws, small transport vehicles and scooters. Market survey reports estimate European production at 24 million two-wheeled scooters annually. In Asia, the market dwarfs that number as the smaller ICE engines exhaust effluent is a considerable environmental nuisance and governments are in need of solutions.
    As announced on March 10, 2003, Palcan received support for the deployment of an alternative transportation solution from the Shanghai Municipal People's Government Economic Commission (MPG). The National Research Council and MPG are acting as sponsors of the joint venture development agreement which is a significant milestone in Palcan's progress. China's endorsement of Palcan's proton exchange membrane (PEM) fuel cells validates the Company's leading edge technology.
    "Our primary goal was to display the fact we could power up a two wheel electric vehicle using a fuel cell as the power source," stated John Shen, Palcan's President & CEO. The objective of this exercise was to expose the technology of the future now, as an alternative to current small vehicle battery powered systems. Airports, golf courses, movie studios, amusement parks and large industrial complexes are examples of where this world changing technology can be employed prior to the actual infrastructure build-out for the emerging Hydrogen Economy," he added.
    The replacement of the internal combustion engine by fuel cells for use in automobiles requires a major overhaul of current manufacturing and design. Major oil companies are supporting the global deployment as are major automobile manufacturers.
    Implementation of the deployment of this new technology will involve Palcan's metal hydride canister system, centered on an exchange re-filling process. This will be facilitated via retail networks similar to those now in use throughout North American jurisdictions for the distribution of disposable propane canisters. Palcan has achieved a strong level of interest from Scooter OEMs in Europe and Asia following this successful demonstration.

    About Palcan

    The Company is a leading developer and manufacturer of proton exchange membrane (PEM) fuel cells and metal hydride hydrogen storage products. The Company's proprietary and patent pending technologies form the core of the PalPac(TM) Power Products, a unique and integrated fuel cell power system. The Company's PalPac(TM) fuel cell systems are a reliable and clean environmental alternative to replace batteries and small internal combustion engines in global consumer products such as electric scooters and bicycles and other portable power products. The Company's manufacturing, research and development facilities are located in Burnaby, British Columbia.

    "John Shen"
    John Shen, Ph.D.
    President & CEO

    Certain matters discussed in this press release may contain forward-looking statements that may involve risk and uncertainties. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to; product development delays, the ability to attract and retain business partners, competition from other fuel cell manufacturers, competition from existing power technologies, and the ability to provide the capital required for product development, operations and marketing. Investors are encouraged to review the Company's filings on SEDAR at www.sedar.com

    The TSX Venture Exchange has neither reviewed nor approved of the contents of this new release.