Hydrogenics Launches Fuel Cell Commercialization Initiative For Off-Road Mobility

Company Awarded Key Vehicle-To Grid Patent

TORONTO, Feb. 17 -- Hydrogenics Corporation (TSX: HYG and Nasdaq: HYGS), a leading innovator, developer and manufacturer of fuel cell and hydrogen-related technologies, today announced a new business initiative to develop fuel cell-based power trains for 'off road' light vehicles. The Company is targeting original equipment manufacturers (OEMs) to partner in the development of a range of fuel cell-powered 'off-road' vehicles in the sub automotive power range -- typically less than 50 kW of power. Such vehicles would be deployed in utility markets such as airport ground support, materials handling, underground mining, grounds maintenance, and military applications.

Substantial cost reductions in the HyPM fuel cell power module combined with break-through increases in durability and performance have accelerated the market window for certain 'off-road' light mobility markets. These markets are expected to be early adopters as the attributes of fuel cell technology address customer needs that are currently not satisfied by incumbent technologies.

"Over the past two years Hydrogenics has experienced great success with our partnerships and power module deployments," says Pierre Rivard, President and CEO. "We are increasingly being recognized as the 'go-to' company that provides a complete technology solution for today's early-adopting markets. Establishing a foothold in the high-potential 'off-road' light mobility markets has always been one of our primary goals. Now that we are exceeding critical cost and system durability milestones, we feel the time is right to implement an aggressive strategy to capture the emerging opportunities with our portfolio of technologies."

In addition to developing additional HyPM power modules to complement its current 10 kW commercial model, the Company is working with new and existing partners to develop integrated hybrid power plants optimized for 'off-road' light mobility applications.

"Our announcement today is a call for prospective industry partners to check out our new Hydrogenics Partner Program," continues Rivard. "Our reliance on key suppliers, complementary product partners and strategic OEM partners, distinct among our peers, is fundamental to our success. We are eager to further engage partners in the development of complete fuel cell based power train solutions. Target partners in this program include compatible mobility OEMs and component providers in the areas of hydrogen storage, electrical storage devices, power conditioning, traction controllers and drives, and fuel cell components. This is all about accelerating markets and supply chains. Fuel cells are no longer a laboratory phenomenon and Hydrogenics will work with OEM partners who are interested in incorporating fuel cells into their advanced product offerings."

Related Hydrogenics' mobility projects and sales previously announced include: forklifts, through an SDTC funded project with NACCO; light utility vehicles through co-operative projects with John Deere ePower Technologies; integration of a 20 kW fuel cell power module in a fuel cell hybrid bus in Hawaii; delivery of 13 fuel cell power modules to date, and confirmed orders for an additional eight HyPM 10 kW power modules for use in a variety of other applications and markets.

Company Awarded Key Vehicle-to-Grid (V2G) Patent

The Company also announced today that it has been awarded a U.S. patent related to the system and method of buying and selling electricity generated by fuel cell powered vehicles.

"This patent complements our light mobility initiatives, as future deployments of our technology will utilize fuel cell vehicles to provide emergency and peak-shaving back-up power, off-board electricity for tools, as well as V2G power," said Rivard. "We believe that changing the utility function of vehicles may accelerate the adoption rate of fuel cell technology and facilitate a convergence of transportation and stationary power technologies."

About Hydrogenics

Hydrogenics Corporation (www.hydrogenics.com) is a leading clean power generation company, engaged in the commercialization of fuel cell technology and test stations for fuel cells. The company is building a sustainable business, in a potentially "game changing technology" for transportation, stationary and portable power. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in British Columbia, Canada, Japan, the United States and Germany.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Law of 1995. These statements are based on management's current expectations and are subject to changes in the competitive environment adversely affecting the products, markets, revenues or margins of Hydrogenics' business. Readers should not place undue reliance on Hydrogenics' forward-looking statements. Investors are encouraged to review the section captioned "Risk Factors" in Hydrogenics' Form 20F filed with the Securities and Exchange Commission on June 19, 2003 for a more complete discussion of factors that could affect Hydrogenics' future performance. Hydrogenics undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.