Palcan Fuel Cells Signs Japanese Joint Marketing Agreement With Nagase & Co., Ltd.

    VANCOUVER, British Columbia--July 16, 2003--Palcan Fuel Cells is pleased to announce a joint marketing agreement with Nagase & Co., Ltd. of Japan to distribute fuel cell stacks and systems for the Japanese marketplace. Nagase, founded in Kyoto, Japan in 1832, has 100 subsidiary companies in Japan and overseas and sales of $4.19 billion U.S.
    The two companies will lever Nagase's expertise as a technology and intelligence oriented trading company to deploy Palcan's fuel cells to the Japanese markets. Palcan's fuel cell is aimed directly at low output applications where smaller internal combustion engines (ICE) and batteries are the power source. These include personal transport NEV and fleet type vehicles used in closed range environments (airports, amusement parks, golf courses, malls, delivery circuits), two and three wheeled scooters, in addition to including stationary, marine and portable power applications.
    "Japan which is 100% dependent on the importation of fossil fuels for its energy requirements, is the perfect candidate to embrace fuel cell technology", states Dr. John Shen. The Japanese Government has a very serious commitment to wean their Country off oil dependence, by using photovoltaic, wind, and other sources of renewable energy that can be integrated with Palcan's fuel cell management system to create the perfect regenerative loop. "Having Nagase as our Joint Venture partner in Japan establishes the beachhead for Palcan, and allows us access to a potential enormous market" says Shen. This transaction is subject to the approval of The Toronto Stock Exchange Venture Board.

    About Nagase Group

    Nagase Group provides its customers with trading, marketing, R&D, manufacturing and processing functions in four key business area: Chemicals, Plastics, Electronics and Health Care. Nagase & Co., Ltd, is the nucleus of our group, established as a dyestuffs wholesaler in Kyoto, Japan in 1832. In 1900, the Company started importing synthetic dyestuffs from Chemical Industry of Basel, now known as Ciba Specialty Chemicals. In the ensuring years, Nagase has accumulated considerable implementation knowledge in its role as a "technology and intelligence oriented trading company". While developing new markets around the world together with its customers, Nagase has worked on acquiring processing and manufacturing functions, and R&D functions for the development of new technologies and products.

    About Palcan

    The Company is a leading developer and manufacturer of low output 100 watt to 5 kilowatt 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.