Hydrogenics Corporation
TSX : HYG
NASDAQ : HYGS

Hydrogenics Corporation

January 09, 2007 07:01 ET

Hydrogenics and LiftOne team up in South Carolina Pilot Deployments of Fuel Cells in Forklifts

$12 Billion Materials Handling Sector Presents Emerging Opportunity

MISSISSAUGA, ONTARIO and COLUMBIA, SOUTH CAROLINA--(CCNMatthews - Jan. 9, 2007) - Hydrogenics Corporation (TSX:HYG)(NASDAQ:HYGS), a leading designer and manufacturer of hydrogen and fuel cell systems, and LiftOne, a division of Carolina Tractor, have received an award to assist in the deployment of hydrogen fuel cells in forklifts at several manufacturing facilities in South Carolina. The project is an initiative of The Greater Columbia Fuel Cell Challenge, in support of Columbia's efforts to become a centre of expertise in the development of fuel cell hybrid technology for use in the manufacturing and distribution sectors.

LiftOne has engaged and has received acceptance by several prominent manufacturers and distributors in the greater Columbia market areas to demonstrate the advantages of Hydrogenics HyPX™ Fuel Cell Power Packs in two Class 1 lift trucks furnished by LiftOne. These end-users and their third party logistics providers cover a wide range of products from tires, to food products, from beverages to fiber components and automotive componentry. A mobile hydrogen refueler will be supplied for refueling.

The deployments are expected to begin in late spring 2007 and to be completed by November 2007. In addition to this new initiative, Hydrogenics will be commencing a two year deployment of 19 forklift trucks this summer at General Motor's of Canada in Oshawa, Ontario.

"This project, enabled by The Greater Columbia Fuel Cell Challenge, enables key target customers the opportunity to evaluate the benefits of HyPX fuel cell solutions for their lift trucks in their own facilities," said Daryl Wilson, Hydrogenics President and Chief Executive Officer. "It is important that end-users see first-hand the productivity and performance improvements these power packs provide, and to appreciate the operational benefits they enable, such as eliminating the need for battery rooms that can occupy valuable space within a facility. We have already seen the success of initial pilot deployments of our HyPX Fuel Cell Power Pack product in real-time operations. Our next step is to expand the deployment of this product to new potential customers. As our recently announced HyPX distributor, LiftOne is a key player in this project with us and we look forward to this immediate opportunity to put our newly penned distributorship agreement to work."

"Besides being a clean technology, hydrogen fuel cells offer significant productivity benefits over other forklift power options," said Bill Ryan, Vice President and General Manager of LiftOne. "Through the Greater Columbia Fuel Cell challenge we will now be able to demonstrate these benefits to our customers in a real life situation."

"This partnership is yet another asset to Columbia's continued growth as a leader in the future of fuel cell technology," said City of Columbia Mayor, Bob Coble. "This public-private partnership between the Greater Columbia Fuel Cell Challenge, Hydrogenics and Lift-One brings endless possibilities to our city through the potential growth in knowledge based jobs and opportunities within the Fuel Cell District and beyond."

The size of the $12-billion materials handling sector, where 749,000 forklift trucks were sold in 2005, represents an excellent near-term market opportunity for Hydrogenics.

About Hydrogenics

Hydrogenics Corporation (www.hydrogenics.com) is a globally recognized developer and provider of hydrogen generation and fuel cell products and services, serving the growing industrial and clean energy markets of today and tomorrow. Based in Mississauga, Ontario, Canada, Hydrogenics has operations in North America, Europe and Asia.

About LiftOne

LiftOne, A Division of Carolina Tractor (www.LiftOne.net) is a full-service material handling dealership, providing equipment solutions to move and store customers' product. LiftOne offers new and used equipment, as well as a large fleet of equipment ready-to-rent. With a service staff of over 130 highly trained technicians, LiftOne services most brands of material handling equipment at customer locations. LiftOne's product brand lineup includes: Cat® Lift Trucks, Linde Lift Trucks, Ottawa/Kalmar, Komatsu, LiftKing, and others.

About The Greater Columbia Fuel Cell Challenge

USC, the City of Columbia, the South Carolina Research Authority and Engenuity SC have organized the Greater Columbia Fuel Cell Challenge (www.fuelcellchallenge.com) to collaborate with private sector leaders from all areas of the fuel cell market for the unprecedented deployment of fuel cell and alternative energy technology into multiple city, university and commercial applications throughout the region.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Law of 1995. These statements are based on management's current expectations and actual results may differ from these forward-looking statements due to numerous factors, including changes in the competitive environment adversely affecting the products, markets, revenues or margins of Hydrogenics' business. Readers should not place undue reliance on Hydrogenics' forward-looking statements. Investors are encouraged to review the section captioned "Risk Factors" in Hydrogenics' regulatory filings with the Canadian securities regulatory authorities and the United States Securities and Exchange Commission for a more complete discussion of factors that could affect Hydrogenics' future performance. Furthermore, the forward-looking statements contained herein are made as of the date of this release, and Hydrogenics undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. The forward-looking statements contained in this release are expressly qualified by this.

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