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Proton Energy Systems, Inc. Announces Third Quarter Results

14 November 2000

Proton Energy Systems, Inc. Announces Third Quarter Results

    ROCKY HILL, Conn.--Nov. 13, 2000--Proton Energy Systems, Inc. today announced results for the third quarter ended September 30, 2000.
    Contract revenues for the third quarter of fiscal year 2000 were $350,125, compared to contract revenues of $33,312 for the same period of the previous year and contract revenues of $131,137 for the second quarter of 2000.
    Net loss for the third quarter of 2000 was $1,014,274, compared to a net loss of $848,852 in the same period of the previous year and a net loss of $744,248 for the second quarter of 2000.
    Proton received proceeds, net of underwriters' commissions and expenses, of approximately $109.3 million from its initial public offering on September 29, 2000. Because the offering closed on October 4th, after the quarter had ended, a pro forma presentation of the September 30, 2000 balance sheet has been prepared to reflect the issuance of 7,000,000 shares of common stock in the initial public offering, conversion of warrants, receipt of the net proceeds and the conversion of all the outstanding preferred stock.
    Subsequently, Proton's underwriters exercised their option to purchase an additional 1,050,000 shares to cover over-allotments. The net offering proceeds to Proton from the sale of the additional shares were $16.6 million after deducting the underwriters' commissions. Proton received the proceeds from the sale of the additional shares on October 6, 2000 and they are not reflected on the pro forma balance sheet.
    In commenting about Proton's third quarter results, Chip Schroeder, President and Chief Executive Officer, said, "We are very pleased with the success of our initial public offering. The progress we have achieved in the third quarter is in line with our expectations."

    

                     Proton Energy Systems, Inc.
              Third Quarter Financial Results (unaudited)

                                            Three Months Ended
Income Statement Data:                          September 30,
                                           2000            1999

Net revenues                          $    350,125     $     33,312
Net loss                                (1,014,274)        (848,852)
Net loss attributable
 to common shareholders                 (2,275,274)      (1,096,102)

Loss per share, basic and diluted     ($      1.18)    ($      0.58)

Weighted average shares outstanding      1,920,772        1,900,000




Balance Sheet Data:                    Sept 30, 2000     Dec 31, 1999
                                          Pro Forma

Cash and cash equivalents               $112,732,283      $   580,709
Marketable securities                     47,717,208        2,550,000
Total assets                             164,096,273        5,000,274
Total current liabilities                  2,515,445          921,241
Mandatory redeemable conv. preferred stock         0       13,135,917
Total stockholders' equity (deficit)     161,580,828       (9,056,884)
Total liabilities and
stockholders' equity                     164,096,273        5,000,274