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Ceres Power Holdings plc 21 February 2005 Ceres Power Holdings plc ('Ceres' or the 'Company') Development Programme Update Ceres' system integration programme enters key second phase with Dunlop Aerospace Ceres, the AIM-quoted fuel cell company, is pleased to announce the second key phase of its system integration programme in participation with Dunlop Aerospace and other global component suppliers. The £1 million programme will help Ceres move from its initial prototype system to a cost effective product tailored for its target mass markets in stationary power generation. Significant financial support and in-kind contributions have been secured from the Department of Trade & Industry (DTI) and commercial collaborators. Chief Executive Peter Bance said: 'Now that we have demonstrated world-class performance from our fuel cells, a priority for 2005 is establishing a supply chain for all the other components for our products ahead of market roll-out. We are delighted that Dunlop has agreed to become an important partner at this stage in our development.' Ceres has established early commercial relationships with several leading energy and engineering groups interested in the potential of its fuel cell. They include the global industrial gases giant BOC, which is in partnership trials with Ceres using bottled gas to generate electricity from the Ceres fuel cell. The fuel cells are being developed for applications as diverse as home boilers and stand alone generators to be branded 'Powered by Ceres'. They are expected to offer substantial economic and environmental benefits to users around the globe. The Ceres fuel cells have already undergone rigorous testing prior to the prototype programme now underway, and have been developed for commercial manufacture using low cost components and mass production techniques. Ceres has been described by Prime Minister Tony Blair as a 'world leader', while Energy Minister Mike O'Brien said the company is 'at the forefront of the race to make fuel cells a commercially viable technology.' For further information contact: Peter Bance, Chief Executive, Ceres Power: +44 (0) 1293 400 404 Allan Piper: First City Financial Public Relations: +44 (0) 20 7436 7486 +44 (0) 7736 064 982 Jag Mundi, Corporate Finance, Numis Securities +44 (0) 207 776 1500 www.cerespower.com Ticker symbol: CWR This information is provided by RNS The company news service from the London Stock Exchange