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FST Energy Demonstrates Product that Eliminates Fuel Cell Dependence on Bulky Hydrogen Cylinders

SAN FRANCISCO--July 27, 2006--FST Energy, Inc. (, a hydrogen storage, transport, and distribution company, today announced a significant breakthrough for the emerging fuel cell market by eliminating the need for metal hydrogen storage cylinders. The FST Fuel Cassette(R) system uses a proprietary chemical reaction to generate 300 percent more hydrogen at 1/3 the weight of pressurized cylinders. FST is currently demonstrating it technology to customers in its Northern California labs and expects to produce its first field test units by the end of the year.

"Our system enables fuel cell backup systems to run many times longer than with current pressurized hydrogen fuel sources, while being significantly smaller, weighing less and maintaining similar operating costs as pressurized hydrogen," said Mike Wilson, FST's CEO. "FST Fuel Cassettes easily provide enough hydrogen to power a 5 kW fuel cell for anywhere between 12 to 120 hours, yet require less space than a standard rack of 6 hydrogen cylinders, which provides 12 hours. This breakthrough ensures that fuel cells will be readily adopted over lead acid batteries for backup solutions as it enables fuel cells to beat the competition on both price and reliability," said Wilson.

As fuel cells have become cost competitive with lead acid batteries, industries like telecommunications, cable broadband and Information Technology are beginning to adopt them for backup needs. In locations such as cell towers, rooftops, and remote cabinet installations where space and weight are primary considerations, a cost-effective hydrogen storage solution with a reduced footprint and lower weight is well suited.

"Our technology enables fuel cell manufacturers to overcome the challenges associated with using pressurized hydrogen as a fuel source," said Dr. Wayne Britton, FST's chief technology officer. "With a cost competitive solution that requires far less maintenance, fuel cell manufacturers now have a choice of hydrogen sources to offer their customers."

About FST Energy, Inc.

FST Energy, Inc. develops and commercializes cost-effective, safe and reliable energy technologies for the emerging Clean Technology industry. FST's hydrogen energy products deliver commercial users with cost-effective solutions to meet their hydrogen storage needs.