Proton Energy Acquires Northern Power Systems

May 21, 2003 by Jeff Shepard

Proton Energy Systems Inc. (Wallingford, CT), a hydrogen generator and regenerative fuel cell company, announced that it will acquire Northern Power Systems Inc., a leader in the design, manufacture and installation of integrated, on-site power systems for stationary commercial and industrial applications. Together, the companies will offer a wide array of practical energy technologies, including Proton's hydrogen generation products and Northern's renewable and fossil-fuel power systems.

Proton will pay $27.5 million to Northern's security holders, approximately two-thirds in cash and the balance in Proton common stock. Northern's security holders will also receive warrants to purchase approximately 2.5 million shares of Proton stock. To underscore its commitment to commercial self-sufficiency and shareholder value, Proton also plans to make a special cash distribution of $1 per share, or approximately $33.5 million, based on current shares outstanding, payable on June 20, 2003, to shareholders of record as of June 6, 2003.