H Power Announces Joint Development Agreement With DuPont; Work To Focus On Portable Direct Methanol Fuel Cell Products

Business Wire, August 29, 2001

Business Editors

CLIFTON, N.J.--(BUSINESS WIRE)--August 29, 2001

H Power Corp. (NASDAQ: HPOW), a leading fuel cell development company, today announced it has formed a joint development agreement with DuPont Fluoroproducts aimed at developing direct methanol fuel cells (DMFC) for portable and mobile applications.

Under the agreement, the two companies will work together to develop direct methanol fuel cell products in the range of 100 to 1000 watts, initially targeted to mobile applications, such as scooters, bicycles and golf carts. This technology could also be applied to consumer products such as power tools and other battery replacement applications.

H Power, a leader in designing fuel cell stacks and systems, will provide expertise in the area of designing, developing and manufacturing fuel cell stacks and systems where DMFC's can be used. DuPont Fluoroproducts will provide H Power with advanced DMFC materials based on its DuPont(TM) Nafion(R) membrane technology and will cooperate in the design of stacks and components. As part of the agreement, H Power has delivered a proof-of-concept product to a potential customer and intends to deliver an integrated system in the near term.

"We believe that the development and commercialization of portable direct methanol fuel cell products will result in an industry-wide paradigm shift with substantial benefits for consumers," says H. Frank Gibbard, chief executive officer for H Power. "Direct methanol fuel cells will operate consumer products much longer than rechargeable batteries."

"This joint effort with DuPont Fluoroproducts will benefit H Power by allowing us to offer products to more people in more markets," says Gibbard. "We believe that portable direct methanol fuel cell products will complement our existing portfolio of portable, mobile and stationary fuel cell product offerings. In addition to expanding our product line, this joint development agreement expands our growing list of world-class relationships. We believe that this is the first step in the formation of a growing relationship between our two companies and we look forward to working with this world-class leading science and technology company."

"DuPont is pleased to be working with an industry leader like H Power on portable and mobile direct methanol fuel systems," says David L. Peet, director - DuPont Fuel Cells. "We believe this is a positive step in our overall strategy to accelerate commercialization of DMFCs."

About DuPont

DuPont (NYSE: DD) is a science company, delivering science-based solutions that make a difference in people's lives in food and nutrition; health care; apparel; home and construction; electronics; and transportation. Founded in 1802, the company operates in 70 countries and has 90,000 employees.

About H Power Corp.

H Power Corp. (NASDAQ: HPOW) is a leading fuel cell development company and one of the first providers to complete a commercial sale of a proton-exchange membrane (PEM) fuel cell system. PEM fuel cells generate electricity efficiently and cleanly from the electrochemical reaction of hydrogen and oxygen. Hydrogen is typically derived from conventional fuels such as natural gas or propane, and oxygen is drawn from the air. H Power's fuel cells are designed to provide electricity for a wide range of stationary, portable and mobile applications including residential cogeneration products for rural,

remote homes, and backup power units for mobile applications. For additional information, please visit our website at www.hpower.com.

Certain expectations and projections regarding the future performance of H Power discussed in this news release are forward-looking and are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These expectations are based on currently available competitive, financial and economic data along with the Company's operating plans and are subject to future events and uncertainties. Management cautions the reader that the following factors, amongst others, may cause H Power's plans to differ or results to vary significantly from those expected, including the impact of competition, technology development, pricing, market demand and marketplace acceptance, and other risks set forth from time to time in H Power's filings with the Securities and Exchange Commission, including, but not limited to the risks set forth in H Power's Registration Statement on Form S-1. H Power undertakes no obligation to publicly release the results of any revisions to forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The events highlighted herein should not be assumed to be items that could affect the future performance of the Company.