Placing

13 July 2005

                                 ITM Power plc                                 

                           ('ITM' or 'the Company')                            

                          Placing of Founders' Shares                          

Further to an announcement on 1 July 2005, ITM Power plc, which aims to provide enabling technology for the hydrogen 
economy, is pleased to announce today that 6,818,181 existing ordinary shares have been placed successfully with 
existing and new investors on behalf of John Wreford, Dr Jon Lloyd and Dr Donald Highgate, all being founders and 
directors of ITM.

The shares placed represent 7.4 per cent of the issued share capital of the Company and were placed at a price of 88 
pence per share.

Following this placing, the Company has been notified of the following
directors' interests in its share capital:

Name of director            Number of     Price         Holding     Percentage of
                          shares sold                 following     share capital
                                                   notification              
                                                                             
John Wreford                3,863,637        88p     10,136,363             11.03
                                                                              
Dr Jon Lloyd                1,477,272        88p     12,522,728             13.63
                                                                               
Dr Donald Highgate          1,477,272        88p     12,522,728             13.63


John Wreford, Dr Jon Lloyd and Dr Donald Highgate will undertake not to sell
any further shares in the Company for a period of 12 months.

The Company has also been notified that, as part of the placing, Peter
Hargreaves, a non-executive director of ITM, has increased his share holding as
follows:

                            Number of     Price         Holding     Percentage of
                               shares                 following     share capital
                            purchased              notification              
                                                                             
Peter Hargreaves              244,000        88p      5,289,180              5.76



For further information please contact:

Jim Heathcote, 
Chief Executive    
ITM Power plc                                                                
Tel: [phone]                                                            
       

Gemma Chandler                                                                                                   
Tavistock Communications                                                     
Tel: [phone] 
                                                          
                                                                             
Simon Hirst / Richard Swindells                                              
Panmure Gordon & Co                                                          
Tel: [phone]