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Protonex Awarded Program to Further Develop Solid Oxide Fuel Cell Power Systems

Friday, March 6, 2009

SOUTHBOROUGH, MA — Protonex Technology Corporation (LSE: AIM: PTX and PTXU), a leading provider of advanced fuel cell power systems announces that, as anticipated, it has received confirmation of a $1,481,470 contract award from the U.S. Army to adapt its solid oxide fuel cell (SOFC) power systems for operation on alternative fuels. This program will focus on advancing 500 Watt to 1,000 Watt SOFC power systems that operate on high- performance liquid fuels, including alternative, bio- derived fuels such as butanol and bio-diesel.

Under the terms of this 24-month contract, Protonex will further develop and advance its existing SOFC systems operating on liquid fuels such as butanol, bio-diesel, gasoline, and kerosene. This work will focus on fuel processing, demonstration of high- power-density, mechanically robust stacks and optimization of a complete generator-culminating in a demonstration of generator performance and lifetime. At the conclusion of the program, two fuel cell systems will be delivered to the Army for further testing and evaluation.

There is growing military and commercial interest in the use of alternative or renewable fuels to reduce dependence on foreign oil. Solid oxide fuel cells, with their low emissions and high efficiency, are well- suited to generate electricity from these "green" fuel sources. Fuel-flexible generators capable of operating on both traditional and alternative liquid fuels can provide highly efficient electricity generation from both today's transportation fuels and the biofuels of tomorrow.

Development of these small SOFC systems will provide the military with lightweight, extremely quiet and fuel efficient systems that could be used in powering equipment during field operations as an auxiliary power unit (APU), portable generator or field battery charger. In addition to being quieter than combustion-engine generators and lighter than batteries, these fuel cell systems can efficiently process high-performance liquid fuels to maximize the energy of the complete power system.

"We are pleased to have received this significant award," commented Dr. Jerry Martin, Vice President of SOFC Development for Protonex. "Clean and quiet power generators that operate on readily available fuels are in high demand for military and commercial markets. This program will accelerate our SOFC product development at Protonex and allow us to further advance our leading-edge SOFC platforms."

About Protonex Technology Corporation
Protonex Technology Corporation develops and manufactures compact, lightweight and high- performance fuel cell systems for portable power applications in the 100 to 1000-watt range. The Company's fuel cell systems are designed to meet the needs of military and original equipment manufacturer (OEM) customers for off-grid applications underserved by existing technologies by providing customizable, stand-alone portable power solutions and systems that may be hybridized with existing power technologies. The Company is based in Southborough, Massachusetts.

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