Technical Update

Strictly embargoed 07.00: 21 March 2005

                                 ITM POWER PLC                                 

          LAUNCH OF ITM'S FIRST WORKING DUAL LIQUID FUELLED FUEL CELL          

ITM Power ('ITM' or 'the Company'), which aims to provide the enabling
technology for the hydrogen economy, today announces that it has successfully
demonstrated an alkaline solid polymer fuel cell using ITM's unique alkaline
membrane technology operating by using two liquids: a liquid fuel and a liquid
oxidant. This demonstration device is an additional strong indication of the
diversity and commercial potential of ITM's core materials and processes and
significantly broadens the potential addressable markets for future licensing
deals.

The device was built to demonstrate the application of ITM's technology to a
micro-fuel cell, a size that could be compatible with use for instance in a
hand held telecommunication or other portable electronic devices. It has the
potential to be operated at high energy density at room temperature using a
safe fuel / oxidant combination: sodium boro-hydride (non-flammable, as it is
used as a solution in water) and hydrogen peroxide (a similar dilution to an
antiseptic which you can buy at a high street chemist). Using two liquids
enables the device to operate at high altitudes, such as in an aircraft; in
polluted environments (including the presence of carbon monoxide in atmospheric
air), as well as underwater.

Additionally, ITM has developed and filed a UK patent on a new early warning
system, which indicates when the liquid fuelled fuel cell is in need of
refueling. The system consists of a colour indicator that allows the colour of
the fuel (or the oxidant) to change as the material is exhausted, giving an
early warning of the need to re-charge the device. Previously, the rapid drop
in performance was the only means of detecting that the fuel needed
re-charging.

UK patent applications have been made to include: the early warning refueling
colour indicator and a sealed refueling cassette designed specifically to
enable the rapid and convenient refueling of fuel cells operating using one (or
two) liquids.

Jim Heathcote, CEO of ITM Power commented: 'It is central to ITM's approach
that the technology it develops should be actually useable, and it must
therefore be robust and easy to refuel using non-hazardous materials. This new
system offers a route to a rapid, safe and convenient refueling process without
which such fuel cells will not become commercially successful. The present
technical demonstration clearly indicates ITM's commitment to increasing its
value by expanding its intellectual property, whilst concentrating firmly on
technologies necessary to make fuel cells both cost effective and attractive to
commercial customers.'

Please call the following if you wish to either arrange for a demonstration of
the technical device or for further information:

Media and Analysts          Institutional Investors    Private Client Brokers  
                                                                               
Gemma Chandler / John West  David Rae / Katherine Roe  Simon Hudson            
                                                                               
Tavistock Communications    Durlacher                  City Insights           
                                                                               
Tel: [phone]          Tel: [phone]         Tel: [phone]