UTC Fuel Cells and Toshiba Agree To Rearrange Fuel Cell Partnership

Business Wire, Nov 17, 2004

SOUTH WINDSOR, Conn. -- UTC Fuel Cells, a business of United Technologies Corporation (NYSE:UTX), today announced changes to its long-standing relationship with Toshiba. Under the terms of the agreement, UTC Fuel Cells will purchase Toshiba's 10 percent ownership interest in UTC Fuel Cells, and Toshiba will purchase UTC Fuel Cells' 49 percent interest in Toshiba International Fuel Cells (TIFC).

Toshiba and UTC Fuel Cells have collaborated on fuel cell technology since the 1980s, which led to the creation of TIFC in 2001. Fuel cells are gaining recognition as a clean, reliable, and efficient alternative to traditional power sources, such as oil.

UTC Fuel Cells manufactures the PureCell 200(TM), a phosphoric acid fuel cell (PAFC) stationary power unit, and develops proton exchange membrane technology (PEM) fuel cells to power cars and buses. UTC Fuel Cells also is developing PEM for stationary power plants. Toshiba is focused on developing and selling small PEM-based fuel cell power plants for residential use. Joint technology development of PEM by the two companies will continue under the new agreement, which includes a cross-licensing arrangement.

The new agreement does not affect UTC Fuel Cells' transportation fuel cell business or Toshiba's direct methanol fuel cell business.

"This new arrangement allows UTC Fuel Cells to continue to pursue our key initiatives--PEM fuel cells for cars and fleet vehicles, and PEM and PAFC for large stationary units--while evaluating other fuel cell technologies, such as solid oxide fuel cells," says UTC Power President Jan van Dokkum. "It also allows Toshiba to pursue its interest in commercializing small PEM stationary fuel cells for the Japanese market. I am pleased that we will continue our technical collaboration with Toshiba, since both companies have a great heritage in fuel cells."

United Technologies Corp., based in Hartford, Conn., provides high technology products and services to the commercial building and the aerospace industries. Its UTC Power unit, based in South Windsor, Conn., is a proven provider of clean power solutions. With more than 40 years of experience, UTC Power, which includes UTC Fuel Cells, provides on-site power generation solutions and is a leader in fuel cell production and development for commercial, transportation, and space applications.