Patent Update

ITM Power PLC 08 September 2005 8 September 2005 ITM POWER PLC ('ITM' or 'the Company') ITM POWER'S CORE PATENT APPLICATION ALLOWED ITM, which aims to provide enabling technology for the hydrogen economy, is pleased to announce that the European Patent Office has formally allowed ITM's core patent application on electrochemical cells using hydrophilic polymers. The European Patent should be granted within the next few months and ITM intends to make the European Patent effective in all major EU States. The application now allowed by the European Patent Office covers both low cost materials and novel manufacturing processes used separately or in combination to produce membrane electrode assemblies for use in electrochemical cells including fuel cells and electrolysers. Jim Heathcote, CEO, ITM Power said: 'This will significantly increase ITM's ability to protect and control its core technology and the scope of our intellectual property portfolio. It also acts to complement the existing GB Patent (no. 2380055).' -ends- For further information please contact: Jim Heathcote Gemma Chandler Richard Swindells / Katherine Roe ITM Power Plc Tavistock Communications Panmure Gordon & Co Tel: 01780 740 574 Tel: 020 7920 3150 Tel: 020 7459 3600 Notes to Editors About the hydrogen economy and ITM Power: ITM is a leading technical innovator of fuel cell and electrolyser technologies for the hydrogen economy. The future shape of the energy industry is being driven predominantly by the growth in the global demand for energy, the diminishing reserves of oil and by the environmental impact of burning fossil fuels. Hydrogen Economy: • Term used to describe the use of hydrogen as a critical element in the energy economy of the future. • Benefit of hydrogen is that it has the potential to a be a totally 'clean' source of fuel • The vision is that low cost electrolysers produce hydrogen from 'clean' energy sources such as solar, wind and wave and fuel cells use this hydrogen to produce the electricity when its required 'If all the sunlight hitting the earth's surface in one hour was harnessed and converted into electrical power, it would be enough to fulfill mankind's energy needs for a complete year' - BP Solar Electrolysers, via an electrochemical process, convert electricity (from renewable energy inputs) and water into hydrogen (which can be stored) and oxygen and in turn fuel cells, via a similar process convert hydrogen and oxygen into electricity and water. ITM announced in November 2004 that it had successfully produced and tested a Mark III electrolyser stack, which has been operated at a power rating in excess of 200 Watts and are confident that the Company is well on track to achieve their milestone of 500 Watts by June 2006. On the basis of these results, The Generics Group, an independent scientific consultancy, have estimated that in mass production it is possible to achieve $283 per kW. This closely approaches the 2010 US Department of Energy target of $300 for an electrolyser stack. PEM fuel cells developed so far are currently estimated to cost several thousand dollars per output kW (for example, in February 2004, the US Department of Energy estimated the current cost of a fuel cell to be approximately $3,000 per output kW) whereas petrol engines are currently estimated at $50 per output kW. ITM's Technology ITM Power plc believes it has developed and patented the keys to revolutionise the hydrogen economy and is set to become one of the UK's leading innovators within the alternative energy sources industry. ITM's ionically conductive polymer materials and manufacturing processes are used in the production of fuel cells and electrolysers, which are significantly cheaper than those presently used in production. The technology offers high conductivity, hydration control and has the benefit of catalyst recycling. The Company has the ability to produce low cost fuel cells that meet the energy demands of a wide range of industries and specialist technologies including military, automotive and stationary fuel cell markets as well as the capacity to produce household items such as laptops, mobile phones and domestic appliances. ITM's has patented a new manufacturing process that allows a fuel cell/ electrolyser stack of cells to be made in a single process similar to a mass production casting process. The process is capable of producing cells or stacks of any shape that may also be flexible so that they can be moulded into smaller products, such as mobile phones. The Company has applied this technology to a low cost electrolyser that can convert carbon free energy into clean hydrogen fuel on site and on demand, therefore completing the circle of the manufacturing process. This information is provided by RNS The company news service from the London Stock Exchange IGDCUDGGGUR