Hydrogenics Corporation
TSX : HYG
NASDAQ : HYGS

Hydrogenics Corporation

May 25, 2005 09:01 ET

Hydrogenics Signs Contract to Provide Fuel Cell System for U.S. Army Armoured Vehicle

MISSISSAUGA, ONTARIO--(CCNMatthews - May 25, 2005) -

Regenerative system makes hydrogen on-board and uses it to produce clean, quiet power for silent watch operations

Hydrogenics Corporation (NASDAQ:HYGS)(TSX:HYG) today announced that it has signed a contract to manufacture a self-contained regenerative fuel cell power system that will be used to provide auxiliary power for a U.S. Army Stryker Light Armoured Vehicle (LAV). This is a collaborative government project whereby Radian Inc. has entered into a contract with the United States Army (TACOM/TARDEC), and Hydrogenics has signed a defence industrial research contract with Defence R&D Canada, an agency of the Canadian Department of National Defence.

The regenerative power system, an integrated configuration of Hydrogenics' proprietary proton exchange membrane (PEM) fuel cell and electrolyser technologies, is designed specifically to extend the silent watch capabilities of the Stryker LAV. Radian Inc. is responsible for the on-board integration of the auxiliary power system and its testing and validation. As part of the 12-month project, the LAV will be tested and demonstrated for the U.S. Army.

"The military is one of the early adopters for hydrogen fuel cells because it has special needs for quiet and cool temperature operations. In addition, a regenerative system such as this one removes the need to carry an additional fuel into the field," said Pierre Rivard, President and CEO of Hydrogenics. "This contract will help us to further extend our capabilities in the field of military vehicles and equipment, with a goal of demonstrating that hydrogen fuel cell systems can provide a viable alternative to meet the military's growing power needs."

The electrolyzer component of the on-board regenerative system produces hydrogen which is then stored and subsequently used, on-demand, by the fuel cell component. Fuel cells generate electricity quietly with a low temperature signature, zero emissions and improved efficiency as compared to the conventional light armoured vehicle main internal combustion engine. In addition, the unit is considerably more efficient in cold weather than batteries and eliminates any issues related to toxicity and recycling. This same regenerative auxiliary power technology is applicable for other non-military purposes such as the reduction of idling emissions in commercial transport vehicles.

About Hydrogenics

Hydrogenics Corporation (www.hydrogenics.com) is a leading global developer of clean energy solutions, advancing the Hydrogen Economy by commercializing hydrogen and fuel cell products. The company has a portfolio of products and capabilities serving the hydrogen and energy markets of today and tomorrow. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in North America, Europe and Asia.

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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