Technology Partnerships Canada Invests $1.4 Million In Stuart Energy Technology Development

TORONTO--March 8, 2004--Stuart Energy Systems Corporation (TSX:HHO) announced today an expansion of the scope of its Hydrogen Energy Station (HES) development project, including an additional $1.4 million in funding support from Technology Partnerships Canada (TPC), a special operating agency of Industry Canada. As part of the project, Stuart Energy has successfully developed technology that produces clean hydrogen for vehicle fueling. The project amendment will allow Stuart Energy to adapt this technology for use in hydrogen backup power generators and hydrogen-based storage systems for renewable energy sources like wind and solar power.

"Stuart Energy has been involved in the hydrogen vehicle fueling market for some time now, thanks in part to the on-going support we receive from the Government of Canada," commented Jon Slangerup, President and CEO. "Our work in developing Hydrogen Energy Stations has opened up a new market for us, namely the distributed power generation sector. Our partnership with TPC will allow us to move forward with this multi-purpose hydrogen infrastructure technology, creating new opportunities in new markets."

The HESfp with both fueling and power capabilities is comprised of five modules: water electrolysis-based hydrogen generation, compression, high-pressure storage, hydrogen fuel dispensing and power generation. The HESfp can produce and deliver clean and safe hydrogen fuel to vehicles while at the same time provide backup or peak power to facilities, resulting in an environmentally-friendly alternative to the traditional diesel backup power generators used in most large buildings today.

About Stuart Energy

Stuart Energy Systems Corporation (TSX:HHO) is the world leading developer and supplier of integrated hydrogen solutions that use the Company's proprietary hydrogen generation water electrolysis technology with products from corporate partners to serve existing and emerging markets for power generation, transportation and industry. The Company's website address is http://www.stuartenergy.com.

This release includes forward-looking statements, which are based on certain assumptions and reflect management's current expectations as contemplated under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Some of these factors include: general global economic conditions; general industry and market conditions and growth rates; uncertainty as to whether our strategies and business plans will yield the expected benefits; increasing competition; availability and cost of capital; the ability to identify, develop and achieve commercial success for new products, services and technologies; the level of expenditures necessary to maintain or improve the quality of products and services; changes in technology; changes in laws and regulations, including codes and standards, intellectual property rights, and tax matters; the uncertainties of the emerging hydrogen economy, including the hydrogen economy growing at a slower pace than is anticipated; our ability to secure and maintain strategic relationships; the availability of, and ability to retain, key personnel; and the failure of the Company to effectively integrate acquisitions. Additional factors are discussed in our materials filed with the securities regulatory authorities from time to time. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.