First prototype system test

AFC Energy Plc
31 January 2008



                                 AFC Energy plc

                 Successful performance of prototype fuel cell

AFC Energy plc, ('AFC Energy' or the 'Company'), the low cost alkaline fuel cell
company, is pleased to announce that it has successfully achieved its fourth
technological milestone, operation of the first prototype system, within the
projected timescale described in the Admission Document.

The first prototype system consists of AFC Energy's new generation cartridge,
demonstrating numerous manufacturing, operating and cost benefits. Multiple
cartridges assembled together will be used to form the first 3.5kW system
scheduled to be delivered in August 2008 to AKZO Nobel for in situ testing.

Tests conducted have proved the sound philosophy and design behind AFC Energy's
product. The results, with extremely uniform cell outputs at operating
temperature, have confirmed high tolerance in-house manufacture of the
electrodes, correct manifold and seal design of the cartridge and the innovative
system operating design and control.

This milestone represents an important step towards the completion of the AKZO
Nobel contract. The last milestone will be the prolonged testing of the
prototype system during February 2008 ahead of the delivery of multiple units.

Gerard Sauer, Chief Executive, AFC Energy plc, said:

'With the development of the low cost fuel cell now nearing completion, we are
looking forward to seeing our fuel cells installed on site at AKZO Nobel. This
exciting milestone will prove the viability of our fuel cells to produce
electricity using waste hydrogen that would otherwise have been released into
the atmosphere.

'This milestone represents the first full system operation, including all
electric and electronic control aspects, further establishing our position as a
fuel cell system manufacturer. It establishes the protocol that will be used to
reproduce multiple systems as we move forward with the development programme.

'Through our close working relationship with our customer AKZO Nobel, we remain
on track to deliver our first fully functioning fuel cell during August 2008.'

                               - Ends -


For further information please visit www.afcenergy.com or contact:

AFC Energy plc                              01483 276 726
Gerard Sauer, Chief Executive

Blue Oar Securities                         020 7448 4400
Shane Gallwey
Jerry Keen

Madano Partnership                          020 7593 4000
Mark Way / Graham Moonie




                      This information is provided by RNS
            The company news service from the London Stock Exchange