Palcan Fuel Cells Applauds Canadian Government for its Commitment to Fuel Cell Technology

VANCOUVER, British Columbia--Oct. 1, 20030, 2003--Palcan Fuel Cells Ltd. (TSX VENTURE: PC) applauds the Canadian Government's announcement yesterday for its commitment of $215-million to capitalize on the upcoming hydrogen economy. Canadian global leadership will be maintained and Canada's fuel cells will enable our research and development companies to commercialize this breakthrough technology.

The focus of the initiative is to "accelerate the development, commercialization and early adoption of hydrogen technologies and applications in Canada is a key element of these investments". This mandate gives leverage to Canadian fuel cell companies such as Palcan, by our Government providing the necessary financial and public awareness support. Resulting in the end of commercializing our unique technology to ramping up production lines for fuel cell components.

"With early support of integrated hydrogen economy projects in Canada, we will learn by doing," said Minister of Industry, Allan Rock. "The Government of Canada is open to receive proposals, and we are excited about partnering with the private sector to demonstrate the viability of hydrogen solutions." This technology program will include stationary, portable, transportation, communications, general purpose, business and domestic applications.

Vancouver is the home to the largest cluster of fuel cell expertise in the world; Palcan is honored to be a part of this category being a producer of low output 100 Watt to 5 Kilowatt fuel cell power sources. Yesterday's initiative clearly outlines the Canadian Government's commitment to the protection of intellectual property developed in Canada, by Canadian companies like Palcan Fuel Cells, and solidifies the future of the fuel cell industry in Canada. This bold initiative may open the door to additional investment from the private sector, which may recognize the potential magnitude of the possible revenue streams associated with utilities that power nations.

Palcan Fuel Cells President & CEO Dr. John Shen, who attended the news conference in Ottawa yesterday, stated that he is "most genuinely impressed by the Government's determination to ensure that Canada remains a world leader in this future altering breakthrough power technology. With the outstanding support offered today, fuel cell companies in Canada will be able to provide the technology and products that will propel Canada to the forefront in the world's next generation power technology, one that has a global market."

John Shen, Ph.D., President & CEO

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