Plug Power and Honda to Continue Collaboration

March 15, 2006 by Jeff Shepard

Plug Power Inc. today announced two new agreements with Honda R&D Company, Ltd. of Japan to continue expanding the companies' collaborative efforts. The agreements relate to fundamental research activities and to the development of a residential fuel cell based cogeneration system.

The first of the new agreements covers the fourth consecutive phase of joint development of the Home Energy Station. The Home Energy Station is a fuel cell system that provides electricity and heat to a home or business, while also providing hydrogen fuel for a fuel cell vehicle. The companies completed the previous phase in November 2005 with the successful commissioning of the third-generation Home Energy Station at Honda R&D Americas' facility in Torrance, Calif. This third-generation system is 30 percent smaller in size than its predecessor, with 25 percent more power output, more hydrogen storage capacity, higher efficiency and significantly faster startup time. The continued phase-over-phase improvement trend is expected to continue with Phase 4. Under this new agreement, Honda R&D will continue to fund Plug Power's work on the Home Energy Station.

The second new agreement is focused on fundamental research and development work that Plug Power is conducting under funding from Honda. This agreement is focused on the advancement of technology for future Home Energy Stations, as well as more generalized applications, which are expected to benefit other Plug Power products. The system is expected to be more environmentally friendly than traditional energy devices due to its higher efficiency and lower emissions.

"We are excited to announce the completion of these contracts and the achievement of our public milestone related to our continuing relationship with Honda," said Mark Sperry, Plug Power Chief Marketing Officer. "We are honored to be working with Honda on such important initiatives and look forward to the benefits of our ongoing and growing collaboration."