| Distributed Energy Systems Awarded SBIR Phase II Contract for Advanced Regenerative Fuel Cell Development |
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Contract with the U.S. Army Missile Defense Agency WALLINGFORD, Conn., Sep 22, 2004 /PRNewswire-FirstCall via COMTEX/ -- Distributed Energy Systems Corp. (Nasdaq: DESC), announced today the award of a Small Business Innovative Research (SBIR) Phase II contract from the U.S. Army Missile Defense Agency (MDA) to continue development of lightweight regenerative fuel cell technology for high altitude airships. The goal of this 2-year, $749,999 contract is to demonstrate a multi-kilowatt-capable closed-loop hydrogen-oxygen regenerative fuel cell and is a continuation of work completed in Phase I of this project. This regenerative fuel cell can generate pressurized hydrogen and oxygen electrochemically, without mechanical compression. MDA plans to apply this technology for energy storage for high altitude airships, which will be used as platforms for sensors and communications vital for missile defense and homeland security. The Phase I contract, completed in April 2004, demonstrated key lightweight components for electrochemical cells. This contract is part of a MDA program to develop a lighter than air, high altitude airship (HAA) Advanced Concept Technology Demonstration (ACTD) prototype. The program goal is to show the engineering feasibility and potential military utility of an unmanned, un-tethered, gas filled, solar powered airship with the potential to fly at 70,000 ft. and self deploy from the continental United States to worldwide locations. Proton Energy Systems, now a wholly owned subsidiary of Distributed Energy Systems Corp., has performed work on NASA SBIR Phase I and Phase II contracts as well as its ongoing contract with the Naval Research Laboratory funded by the Defense Advanced Research Projects Agency. These contracts have facilitated the demonstration of regenerative fuel cell operation as well as the ability to electrolyze water to generate hydrogen and oxygen gases at pressures exceeding 3,000 psi. The efficient compression of these gases, a key feature in aerospace, high energy density applications, is made possible by Proton's solid-state electrolysis cell stack design, called HIPRESS(TM). According to Robert Friedland, Senior Vice President Advanced Technology Group, "We are delighted to continue working with MDA on this endeavor. We believe regenerative fuel cell systems will be critical for both commercial and military energy infrastructures in sea, land, air, and space applications. We continue to develop leading edge technology in this important area and look forward to the evolution of these applications in real world deployment." About Proton Energy Systems, Inc. Proton Energy Systems, Inc. designs, develops, and manufactures Proton Exchange Membrane, or PEM, electrochemical products that it employs in hydrogen generating devices and in regenerative fuel cell systems that function as power generating and energy storage devices. Proton's HOGEN(R) hydrogen generators produce hydrogen from electricity and water in a clean and efficient process using its proprietary PEM technology. For more information visit http://www.protonenergy.com. About Distributed Energy Systems Corp. Distributed Energy Systems Corp. (Nasdaq: DESC) creates and delivers products and solutions to the emerging decentralized energy marketplace, giving users greater control over their energy cost, quality and reliability. As the parent company of Proton Energy Systems (http://www.protonenergy.com) and Northern Power Systems (http://www.northernpower.com), Distributed Energy Systems delivers a combination of practical, ready-today energy solutions and the solid business platforms for capitalizing on the changing energy landscape. For more information visit http://www.distributed-energy.com. This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Statements contained herein that are not statements of historical fact, including statements concerning regenerative fuel cell work, may be deemed to be forward-looking information. Without limiting the foregoing, words such as "anticipates," "believes," "could," "estimate," "expect," "intend," "may," "might," "should," "will," and "would" and other forms of these words or similar words are intended to identify forward-looking information. Proton's and Distributed Energy's actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. Proton Energy Systems and Distributed Energy each disclaim any obligation to update these forward-looking statements. Factors that could cause results to differ materially from those contained in Proton's and Distributed Energy's forward-looking statements include, but are not limited to, failure of our products and systems to perform as specified or achieve commercial acceptance, the impact of competitive products and systems and other factors detailed in Distributed Energy's Form 10-Q for the quarter ended June 30, 2004, and other filings Distributed Energy may make from time to time with the SEC. Distributed Energy Systems Corp. Investor Relations Marilynn Meek |
| "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Distributed Energy Systems's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year. |