Stuart Energy Awarded U.S. Patent for Networking Hydrogen Energy Stations

TORONTO--June 23, 2004--Stuart Energy Systems Corporation (TSX: HHO), the world's leading developer and supplier of integrated hydrogen infrastructure solutions based on water electrolysis, announced today that it has been granted a U.S. patent that is directed to hydrogen energy stations, including hydrogen fueling stations, that are networked with primary energy resources and a controller for controlling hydrogen production according to data inputs such as user demand, availability of energy, and hydrogen production status. Stuart Energy has filed for additional patent protection in the U.S. and other key global markets.

This "Energy Distribution Network" patent complements Stuart Energy's previously-granted "Intelligent Hydrogen Fueling Station" U.S. patent, which gives Stuart Energy exclusive rights to market on-site, electrolysis-based hydrogen fueling stations, including PEM and alkaline, where user demand information is automatically exchanged between the user and system components. For example, a "smart card" or keypad is used to activate control of production and supply of hydrogen at a single station. The intelligent interaction between components of a hydrogen energy station and the user is essential to providing a convenient and familiar experience for the customer.

The "Energy Distribution Network" patent contemplates a number of these hydrogen energy stations linked to a central controller that manages the overall hydrogen production. Since hydrogen is produced on-site, as opposed to central production as with today's conventional fueling stations, a central controller is critical in managing the inventories of hydrogen in a network and providing related information to hydrogen users. The central controller will also match the electricity available to produce the hydrogen and balance the supply of electricity and hydrogen with the demand of the fuel users or certain power applications. The central controller will have command and control over these intelligent stations, which should give customers the ability to more effectively optimize their hydrogen station assets.

"This patent is an important and powerful addition to our growing portfolio. It covers a number of Stuart Energy's developments for effectively managing a network of hydrogen energy stations, which is becoming increasingly critical for our customers who operate hydrogen vehicle fleets, fueling networks and distributed power networks," commented Jon Slangerup, President and CEO of Stuart Energy. "This patent significantly enhances our competitive position and our attractiveness as a hydrogen infrastructure partner."

Stuart Energy provides hydrogen energy stations under the Stuart Energy Station (SES) brand name. The SES consists of up to five modules: Hydrogen Generation, Compression, Storage, Power Generation and Fuel Dispensing. These stations can produce hydrogen for a variety of applications, including vehicle fueling and distributed power generation.

With the issuance of this patent, Stuart Energy now has over 60 issued patents and over 140 patent applications on file. The Company will continue to aggressively expand and protect its investment in its intellectual property portfolio.

About Stuart Energy

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