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Plug Power Breaks New Ground in Automotive Fuel Cells

2 February 1999

Plug Power Breaks New Ground in Automotive Fuel Cells; Demonstrates System to Ford Motor Company
    LATHAM, N.Y., Feb. 1 -- In a significant achievement
that brings highly efficient, zero-emission vehicles closer to
commercialization, Plug Power announced today that it has demonstrated
to Ford Motor Company an advanced automotive fuel cell system responsive to
actual vehicle power requirements.  Plug Power will be providing the system to
the U.S. Department of Energy for further testing.
    The development of this advanced proton exchange membrane (PEM) system
is part of a $2.8 million joint program between Plug Power and Ford.  Major
funding for this program was provided by the U.S. Department of Energy.
    This achievement represents an important move toward the creation of
fuel cell systems capable of following the diverse power loads presented by a
typical driving cycle.  The Plug Power system performed exceptionally, closely
replicating acceleration and deceleration conditions with sub-second
responsiveness.
    Plug Power's system -- comprised of auxiliaries needed to simulate
operating an automobile -- exceeded its design specifications for power output
during its test period, and provided maximum efficiency by adjusting its rate
of fuel flow to required output levels.
    In addition, the system attained 75 percent of its power in less than
one-tenth of one second of operation, simulating the "cold start" capacity of
a combustion engine.
    "Ford, Daimler-Chrysler, GM and Toyota have, in total, committed more
than $1 billion for development programs aimed at replacing the internal
combustion engine with this clean and efficient technology," said Gary
Mittleman, Plug Power's President and CEO.  "Although fuel cells for
automotive applications are a number of years away from commercial reality,
they will clearly constitute a huge market.  Our recent demonstration to Ford
sing Plug Power's innovative technologies positions us as an industry leader
in developing the automobile of the next millennium."
    The U.S. Department of Energy funded the Ford/Plug Power program through
its participation in the Partnership for a New Generation of Vehicles (PNGV).
PNGV is a public/private collaboration with the primary goal of developing an
environmentally friendly automobile that is also more fuel efficient than
today's midsize cars without sacrificing affordability, performance or safety.
Ford Motor Company is also a member of PNGV.
    Fuel cells have long been heralded as a solution to the environmental and
fuel conservation challenges faced by the automotive industry.  Fuel cells
efficiently generate safe, reliable electricity through an electrochemical,
rather than combustion, process.  The commercialization of automotive fuel
cell power generation systems will lead to zero emission vehicles that achieve
at least double the fuel efficiency of today's cars.  Major developments by
companies such as Plug Power are bringing this technology to the forefront.
    In parallel with its automotive fuel cell program, Plug Power is
developing highly innovative PEM fuel cell systems for residential
applications.  Since June of 1998, the company has operated the world's first
PEM fuel cell system to power a complete home.  The residential system meets
the energy demands of a 3,000 square-foot house even during peak energy-use
hours without connection to a utility electrical distribution system.
    Based in Latham, N.Y., Plug Power (http://www.plugpower.com) is a joint
venture between DTE Energy Company , a diversified energy company
involved in the development and management of energy-related businesses and
services and parent company of Detroit Edison, Michigan's largest electrical
utility, and Mechanical Technology Inc. (OTC Bulletin Board: MKTY), an early
developer of fuel cell technologies.  Plug Power was formed to develop and
manufacture fuel cells for electric power generation in residential and
automotive applications.  Formed in June 1997, Plug Power has grown from 22 to
more than 150 employees, making it the largest PEM fuel cell company in the
U.S.  The National Energy Resources Organization awarded Plug Power the 1998
Research and Development Award for its fuel cell breakthroughs.