Technological milestone

AFC Energy Plc
24 August 2007


                                 AFC Energy plc


Technological milestone - successful operation of first fully scaled single cell

AFC Energy, ('AFC Energy' or the 'Company'), the low cost alkaline fuel cell
company, is pleased to announce that it has successfully achieved its second
technological milestone, the operation of a fully scaled single cell, within the
projected timescale described in the Admission Document.

The scaled cell electrodes are the same size as the electrodes from the first
prototype system measuring 150mm by 250mm. The scaled cell is now being tested
under specific harsh operating conditions, designed to demonstrate durability
and corrosion resistance of the system.

The successful development of the scaled single cell unit is another important
step towards full commercialisation during 2009. The next expected milestone is
the 500 hours operation of the scaled single cell scheduled for October 2007.
These tests have already begun with the scaled cell being exposed to constant,
transient and no load conditions.

The scaled single cell unit successfully demonstrates the generation of
electricity, using both cathode and anode electrodes, from hydrogen and oxygen.
The Directors continue to believe that AFC Energy's fuel cell will have a
conversion efficiency of approximately 60%.

Gerard Sauer, Chief Executive, said: 'AFC Energy remains on track with the
development of its low cost fuel cell. Excellent progress continues to be made
with the electrode and results from initial tests show that power performances
are very encouraging and catalyst degradation is minimal.

'AFC Energy continues to work closely on the development of its technology with
its customer Akzo Nobel which produces substantial amounts on hydrogen from the
production of chlorine. We look forward to delivering our first fuel cells to
Akzo Nobel during 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 - Broker                020 7448 4400
Shane Gallwey

Nabarro Wells & Co. Limited - Nominated     020 7710 7400
Adviser
Richard Swindells / Anthony Rowland

Madano Partnership                          020 7593 4000
Mark Way / Graham Moonie



About AFC Energy plc


AFC Energy plans to produce 'clean' energy without cost disadvantage

- principal objective to develop and produce an alkaline fuel cell system at a
significantly lower cost than any other fuel cell system and at a commercially
acceptable price point

- improved fuel cell production processes and reduced costs and number of
components required

- precious metals largely eliminated and all materials are expected to have at
least a 50 year security and multiple source of supply.

Availability of hydrogen produced as a by-product by other industries

- initial focus on industries producing hydrogen as waste or excess by-product

- agreement with Akzo Nobel to supply fuel cells and to generate clean energy
from hydrogen produced as by-product at chlorine production plants

Cost advantages to a proven technology

- technology created by AFC Energy based on the alkaline fuel cell technology as
used in the Apollo space shuttles and Russian Navy submarines




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