Hydrogenics Supplies Quantum With Fuel Cell Power Module for U.S. Army Concept Vehicle

 

TORONTO, May 25, 2004 --

HYDROGENICS CORPORATION (Nasdaq: HYGS, TSX: HYG), a designer and manufacturer of hydrogen and fuel cell systems, announced today that it has sold and delivered a HyPM 10 power module to Quantum Fuel System Technologies Worldwide, Inc. , (Nasdaq: QTWW) in support of Quantum's contract with the U.S. Army TARDEC-NAC (National Automotive Center) to develop and demonstrate a high performance, hydrogen fuel cell powered light-duty, alternative mobility vehicle for military applications. The vehicle is being designed by Quantum's Advanced Vehicle Concept Center in Lake Forest, California. "We have always viewed the military as an important early-adopting market for fuel cell technology," said Pierre Rivard, Hydrogenics President and CEO. "Hydrogen and fuel cells offer compelling advantages over incumbent power technologies for military applications. Opportunities such as this that 'put theory into practice' are very valuable in exploring and advancing the full potential of hydrogen and fuel cell technology. We are confident that our HyPM power module's proven durability and reliability will meet Quantum's expectations for this important military initiative."

Expected benefits of this fuel cell powered vehicle include a reduced thermal signature and near-silent operation, each of which offers compelling advantages in silent watch applications compared to a conventional military vehicle. In addition, the capability of fuel cell vehicles to generate off- board power supports the increasing use of tactical and communication equipment on the battlefield and in reconnaissance applications. Fuel currently comprises 70 percent of the supplies transported by the Armed Services to support battlefield operations. This project has the potential to demonstrate a pathway to address related logistic issues by using a fuel that can be synthesized locally from a variety of feedstocks, including water.

"We are pleased to be working closely with Hydrogenics on this important project. Hydrogenics had the ideal fuel cell power module for this application and allows Quantum to provide a well-packaged vehicle to the U.S. Army," said Alan P. Niedzwiecki, Quantum's President and CEO. "As a member of the GM alliance of fuel cell companies, we have previously worked with Hydrogenics on a number of integration programs, including a back-up power demonstration for Nextel Communications. We look forward to working on future programs with Hydrogenics as fuel cell system technologies move into commercialization."

Hydrogenics' HyPM power modules are scalable integration-ready power generators that require only hydrogen fuel to produce DC electrical power. In addition to a fuel cell stack, the power module includes the associated components, subsystems and control software required to produce clean electricity for a wide range of mobile and stationary applications.

About Hydrogenics

Hydrogenics Corporation (http://www.hydrogenics.com) is a leading clean power generation company, engaged in the commercialization of hydrogen and fuel cell technology and test stations for fuel cells. The company is building a sustainable business, in a potentially "game changing technology" for transportation, stationary and portable power. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in British Columbia, Canada, Japan, the United States and Germany.

About Quantum Technologies

Quantum is a Tier 1 automotive OEM supplier. Quantum's ultra-light weight composite hydrogen fuel storage, fuel injection technologies, electronic control products and OEM level systems integration capabilities have enabled the company to develop a product portfolio with state-of-the-art technologies and products, a diverse customer base, and strong alliances with partners such as General Motors, Sumitomo Corporation and former parent IMPCO Technologies.

Quantum and Hydrogenics are members of the GM Global Fuel Cell Alliance of fuel cell commercialization companies.

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 are subject to 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' registration statement on form F-10 filed with the Securities and Exchange Commission on February 3, 2004 for a more complete discussion of factors that could affect Hydrogenics' future performance. 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.