Technical Milestone

Ceres Power Holdings plc
28 September 2005


                             Technical Milestone

     Ceres Power announces latest technical milestone marking fuel cell 
                            success with propane


28 September 2005: AIM-quoted Ceres Power Holdings plc ('Ceres Power'
or 'the Company') has passed another key technical milestone - establishing that 
its world-leading fuel cell can be engineered into a power generating system 
fuelled by bottled gas.

The Company has successfully designed, built and tested an integrated fuel cell
system comprising a bottled gas supply, fuel processor and multi-layer stack.  A
continuous supply of electricity in the range of 250 to 400 Watts was generated
as the system was put through its paces in a series of tests simulating
in-service operating conditions.

Ceres Power's Product Development Director, Andrew Baker said: 'This is
another crucial milestone in our development programme, proving not only that
our cell will work with a range of readily available fuels, but also that Ceres
has the expertise to produce integrated power systems for its target markets.'

A Ceres Power product fed by bottles of gas would be ideally suited to provide a
reliable, energy-efficient and silent supply of power for a range of
applications such as telecoms base stations, on construction sites, and various
leisure uses.

This is the latest in an important sequence of technical breakthroughs for the
Company. Over the past few months, the Company has also announced a four-fold
increase in both the size and power output of its fuel cell and has set a series
of global performance records within the fuel cell industry.

Unlike many fuel cell technologies that can operate only on pure hydrogen, Ceres
Power cells can also operate on a range of commercially available fuels, so they
are not dependent on the widespread development of a hydrogen economy.

Building on its multi-fuel capability and product engineering know-how, Ceres
Power has established a relationship with the industrial gases giant BOC that
targets off-grid applications using LPG.  The Company has also recently
announced an alliance with British Gas to develop a domestic boiler that will
produce heat and electricity using the existing natural gas supply.


For further information contact:


Peter Bance, Chief Executive, Ceres Power Ltd:             [phone]
Allan Piper: First City Financial Public Relations:        [phone]
                                                           [phone]



                                                             Background follows:


How a fuel cell works

Fuel cells are solid-state electrochemical devices that convert fuel directly
into electricity and heat in an extremely efficient and environmentally friendly
way, offering significant energy savings and emissions reductions over
traditional combustion technologies.

While fuel cells are like engines in that they convert fuel into other forms of
energy, their design and construction is more akin to batteries with their flat
electrolyte layers sandwiched between electrodes.  The challenge facing the fuel
cell industry has been to develop economic solutions based on commercially
available fuels like LPG, propane, and natural gas.

The patented Ceres fuel cell technology has distinct technical and commercial
advantages over the alternatives.  Operating temperatures well below traditional
solid oxide fuel cells (SOFC) enables the use of commercially available steels
for the stack and other components in the fuel cell system.  The metal support
for the electrochemical cell provides the basis of durable products for
end-users.  The absence of expensive precious metal catalysts commonly found in
polymer electrolyte membrane (PEM) fuel cells means that Ceres is not limited to
operation on pure hydrogen and the minimal fuel processing requirements involve
simple, compact solutions.  Through these unique benefits, Ceres technology can
provide cost-effective products for a range of on-grid and off-grid mass-market
applications.


About Ceres Power

Ceres Power is a successful AIM-listed fuel cell business targeting a range of
global market applications including on-site/back-up generators, residential
combined heat and power, and auxiliary power units for transport.  Critically,
the technology uses low-cost materials and existing mass-production techniques.
And unlike many fuel cells, the Ceres cell can run on widely available fuels
like LPG, propane and natural gas as well as on hydrogen.

The company received major recognition for its green credentials when it became
the 2003 winner of the prestigious Carbon Trust Innovation Award.  More
recently, the Company secured the industry!s top accolade by winning the
Institute of Materials, Minerals and Mining!s Gold Medal for 2005.

Since its formation in 2001, Ceres Power has raised over £25 million of funding
through two rounds of private equity and its AIM IPO in November 2004.  The
company has many blue chip City institutions as financial backers including
Fidelity, Morley, and Jupiter.



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