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Plug Power and W.L. Gore Form Collaborative Research Program

9 October 1998

Plug Power and W.L. Gore Form Collaborative Research Program to Advance Fuel Cell Technology; Receive Funding from Prestigious National Research Program

    LATHAM, N.Y., Oct. 8 -- Plug Power recently announced that it
will receive funding from the National Institute of Standards and Technology's
(NIST) Advanced Technology Program (ATP).  The two-year, $9.7 million program
teams Plug Power and W.L. Gore & Associates to explore technical advancements
in the areas of membranes and membrane electrode assemblies as well as the
fuel cell stack itself.  ATP funding of $4.7 million will be matched by an
additional $5.0 million from Plug Power and Gore.
    "To be awarded this grant from the Advanced Technology Program is an
important milestone toward our company's mission of being the first to sell
one million fuel cell systems," said Gary Mittleman, Plug Power's president
& CEO.  "It represents the creation of a public and private partnership to
accelerate the advancement of fuel cell technology with the promise of
significant economic and consumer benefits.  In partnership with Gore, we
believe we can make this a reality."
    The two-year program will focus on the development of fuel cell systems
that are lightweight, scalable and mass produceable.  These advancements will
enable the stack to operate efficiently in the presence of high concentrations
of carbon monoxide (CO) and will also serve to increase overall system
efficiency.  When combined, the impact of these two benefits will validate the
use of fuel cell power for a wide range of premium power applications.  Such
applications include providing power to remote areas and to residences and
small businesses that suffer severe consequences from power interruptions --
such as those caused by severe weather and the resulting downed power lines.
    In addition to increased efficiency and reliability, fuel cells also offer
significant environmental benefits.  The electrochemical process of power
generation used in a fuel cell virtually eliminates emissions of nitrous oxide
and sulfur dioxide, and greatly reduces emissions of carbon dioxide.  Another
major benefit involves cost savings to consumers -- up to 20% off current
electricity rates upon the system's introduction.  Success in this program
will lead to Plug Power's ability to offer these systems for sale at a price
that will attract the broader marketplace even sooner than anticipated.
Commercialization of these fuel cell systems is expected early in the year
2001.
    The Advanced Technology Program (ATP) focuses on accelerating the
development of not-yet-possible technologies that lead to new, innovative
products, services and industrial processes.  ATP works with companies of all
sizes to foster projects that offer a high payoff for the nation as a whole.
Awards are made on the basis of rigorous peer-reviewed competitions that judge
proposals on the basis of technological ideas, overall economic benefits, and
strength of plans for commercialization.  Research priorities for the ATP are
set by industry.
    Based in Latham, NY, Plug Power (http://www.plugpower.com) is a joint venture
between DTE Energy Company , parent company of Michigan's largest
utility, and Mechanical Technology Inc. (OTC Bulletin Board: MKTY), an early
developer of fuel cell technologies.  Plug Power was formed in June 1977 to
develop and manufacture fuel cells for electric power generation in
residential and automotive applications.  Since its inception, Plug Power has
grown from 22 to more than 130 employees.  In June of 1998, the company
demonstrated the world's first fuel cell system to power a home.  The National
Energy Resources Organization awarded Plug Power the 1998 Research and
Development Award for its fuel cell breakthroughs.
    W.L. Gore & Associates, Inc. is a privately held company, ranking in the
top 200 of the Forbes top 500 privately held companies for 1997.  Worldwide
sales in the current fiscal year are expected to exceed $1.4 Billion.  If a
public company, Gore would rank in the Fortune 500 companies for 1996 in terms
of profits, market value, and equity.  While best known for their GORE-TEX(R)
fabrics, all Gore's products and teams are distinguished in their markets.
Approximately 7,000 Associates work in over 45 plants and sales locations
worldwide.  Manufacturing operations are clustered in the U.S., Germany,
Scotland, Japan, and China.