Technical Update

3 October 2005

                                 ITM POWER PLC                                 

                           ('ITM' or 'the Company')                            

                               Technical Update                                

          * Initial Results of Longevity Testing of ITM's Electrolyser         
   
              * Research Project Agreed with Heriot Watt University            
   
ITM Power, which aims to provide enabling technology for the hydrogen economy,
announced at the time of its flotation in June 2004 a number of important
milestones for the Company that, if achieved, would indicate to investors its
progress. ITM is pleased to announce today significant progress in its
development of durable modular electrolysers. These enable the realisation of
cost competitive hydrogen fuel as an alternative to hydrocarbons.

In the technical announcement dated 1st September 2004, the Company was able to
demonstrate that its hydrophilic membrane technology could operate as an
electrolyser, and that, according to an independent analysis, the resulting
electrolyser would be significantly cheaper, at $283/kW, than any known
competitive device, if produced in commercial quantities.

At that time, ITM believed that substantial longevity testing under realistic
operating conditions still needed to be carried out before establishing the
commercial potential of the technology. Longevity data was unknown in September
2004 because the Company did not have the necessary test facility. The Company
has since purchased this test equipment and is now pleased to announce that it
has operated its proprietary hydrophilic membrane in an electrolyser for a
period in excess of 500 hours without evidence of failure or degradation of the
membrane. This test is continuing and further longevity tests will be announced
in due course.

The Company feels strongly that to be realistic, the test regime should involve
repeated on-off load cycles (switch-on, operate, switch-off) in replication of
real life requirements. ITM Power believe that longevity figures that are taken
at a constant steady-state are not representative of the requirements involved
in many potential applications e.g. use in conjunction with renewable primary
energy systems; wind, wave or solar, or when providing the fuel for stand-by
emergency power supplies. The totaltime on-test reported here is in excess of
2000 hours during which the electrolyser operated at design power for in excess
of 500 hours, as stated above.

In addition, ITM is pleased to announce that it has concluded an agreement with
Heriot Watt University to fund a PhD student to research the production of
tertiary hydrocarbons by combining electrolytic hydrogen from renewable sources
and carbon dioxide recovered from the atmosphere. Initial results indicate that
it is possible to create hydrocarbons having molecular weights significantly
greater than alcohol, and thus the company has filed a patent application
covering the use of `renewable' hydrogen and `waste' carbon dioxide to
permanently sequester carbon dioxide in commercially valuable products e.g.
bitumen.

Jim Heathcote, CEO, ITM Power said: 'The 500 hours achieved so far, without
degradation, is highly encouraging, especially given the arduous real life test
regime. The principal reasons that fuel cells and electrolysers have not
achieved mass market penetration are cost and durability. We are comfortable
with our advances in cost reduction and have made establishing durability a
priority.

'Low cost and durable electrolysers are the key technology to enable the
conversion of low value, intermittent renewable energy (wind, solar) into
hydrogen which can later be used to generate high value power as and when it is
needed. Combining a cost effective electrolyser with renewable energy sources
will improve the economics of renewable energy and help replace fossil fuels.
We intend to keep investors regularly updated on these important developments.'

-Ends-

For further information please contact:

Jim Heathcote          Gemma Chandler / Simon Hudson  Katherine Roe            
ITM Power Plc          Tavistock Communications       Panmure Gordon & Co      
Tel: [phone]     Tel: [phone]             Tel: [phone]       


Notes to Editors

About the hydrogen economy and ITM Power:

ITM is a leading technical innovator of fuel cell and electrolyser technologies
for the hydrogen economy.

The future shape of the energy industry is being driven predominantly by the
growth in the global demand for energy, the diminishing reserves of oil and by
the environmental impact of burning fossil fuels.

Hydrogen Economy:

  * Term used to describe the use of hydrogen as a critical element in the
    energy economy- of the future.
   
  * Benefit of hydrogen is that it has the potential to a be a totally 'clean'
    source of fuel
   
  * The vision is that low cost electrolysers produce hydrogen from 'clean'
    energy sources such as solar, wind and wave and fuel cells use this
    hydrogen to produce the electricity when it's required
   
'If all the sunlight hitting the earth's surface in one hour was harnessed and
converted into electrical power, it would be enough to fulfil mankind's energy
needs for a complete year' - BP Solar

Electrolysers, via an electrochemical process, convert electricity (from
renewable energy inputs) and water into hydrogen (which can be stored) and
oxygen and in turn fuel cells, via a similar process convert hydrogen and
oxygen into electricity and water.

ITM announced in November 2004 that it had successfully produced and tested a
Mark III electrolyser stack, which has been operated at a power rating in
excess of 200 Watts and are confident that the Company is well on track to
achieve their milestone of 500 Watts by June 2006. On the basis of these
results, The Generics Group, an independent scientific consultancy, have
estimated that in mass production it is possible to achieve $283 per kW. This
closely approaches the 2010 US Department of Energy target of $300 for an
electrolyser stack.

PEM fuel cells developed so far are currently estimated to cost several
thousand dollars per output kW (for example, in February 2004, the US
Department of Energy estimated the current cost of a fuel cell to be
approximately $3,000 per output kW) whereas petrol engines are currently
estimated at $50 per output kW.

ITM's Technology:

ITM Power plc believes it has developed and patented the keys to revolutionise
the hydrogen economy and is set to become one of the UK's leading innovators
within the alternative energy sources industry.

ITM's ionically conductive polymer materials and manufacturing processes are
used in the production of fuel cells and electrolysers, which are significantly
cheaper than those presently used in production. The technology offers high
conductivity, hydration control and has the benefit of catalyst recycling. The
Company has the ability to produce low cost fuel cells that meet the energy
demands of a wide range of industries and specialist technologies including
military, automotive and stationary fuel cell markets as well as the capacity
to produce household items such as laptops, mobile phones and domestic
appliances.

ITM's has patented a new manufacturing process that allows a fuel cell/
electrolyser stack of cells to be made in a single process similar to a mass
production casting process. The process is capable of producing cells or stacks
of any shape that may also be flexible so that they can be moulded into smaller
products, such as mobile phones. The Company has applied this technology to a
low cost electrolyser that can convert carbon free energy into clean hydrogen
fuel on site and on demand, therefore completing the circle of the
manufacturing process.