Directorate Change

ITM Power PLC
28 June 2004

                                 ITM POWER PLC
                         ('ITM Power' or 'the Company')

                      APPOINTMENT OF NON-EXECUTIVE DIRECTOR

The Board of ITM Power is pleased to announce the appointment of The Right Hon.
Lord Walker as a non-executive Director of the Company with immediate effect.

Lord Walker was a member of all Conservative Cabinets between 1970 and 1990,
holding several posts including Secretary of State for Trade and Industry
(including Energy), Secretary of State for the Environment and Secretary of
State for Energy.  He is currently Chairman of Allianz Cornhill Insurance plc
and a non-executive Director of The London International Financial Futures and
Options Exchange.

After retiring from the Cabinet, Lord Walker became Chairman of international
investment bank, Kleinwort Benson Group plc and is now Vice Chairman of Dresdner
Kleinwort Wasserstein.

Stephen Massey, Chairman of ITM Power, said:

'I am delighted to welcome Peter Walker to the Board. He will add substantial
financial and commercial expertise as well as in-depth knowledge of the energy
sector. Peter's enormous experience in the international business and energy
arena will be invaluable to ITM Power. I believe his appointment provides
further endorsement of our technology and prospects.  We look forward to working
with him.'

No further details, other than those detailed below, are required to be
disclosed under schedule 2 paragraph (f) of the AIM rules.

Full name:                        Peter Edward Walker
Age:                              72

Current Directorships:            Allianz Cornhill Insurance plc
                                  Allianz (UK) Limited
                                  Caparo Group Limited
                                  Caparo plc
                                  CBC UK Limited
                                  Dresdner Kleinwort Wasserstein
                                  LIFFE Administration & Management

Previous Directorships:           Carlton Club (London) Limited
                                  Dresdner Kleinwort Benson
                                  European Smaller Companies plc
                                  LIFFE (Holdings) plc
                                  The London Commodity Exchange (1986) Limited
                                  Tate & Lyle PLC
                                  The Vietnam Fund Limited

For further information please contact:

Stephen Massey               David Rae                  John West
Jim Heathcote                Katherine Roe              Gemma Smith
ITM Power Plc                Durlacher Limited          Tavistock Communications
Tel: [phone]            Tel: [phone]         Tel: [phone]
[e-mail]                                       [e-mail]

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 the economy's main source of
    energy
  • 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 its 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 and oxygen and in turn fuel
cells, via a similar process convert hydrogen and oxygen into electricity (which
can be stored) and water.

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 has developed and patented the keys to revolutionise the hydrogen
economy and is set to become one of the UK's leading innovator within the
alternative energy sources industry.

ITM's electrically conductive polymer materials and manufacturing processes are
used in the production of fuel cells, which are significantly cheaper than those
presently used in production.  The technology also offers high conductivity,
hydration control and has the ability to recycle the platinum catalyst, which
aids the formation process of the cell.  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 patented manufacturing process allows a fuel cell or an entire stack of
cells to be made in a single process.  The proprietary polymer membrane is a
thin sheet that allows hydrogen ions to pass through it.  The membrane is coated
on both sides with metal alloy particles (such as platinum) and is inserted at
the heart of the fuel cell.  The process is capable of producing a flexible
shape that can be moulded for smaller products, such as mobile phones.

The Company has also developed 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.

ITM's plan is based upon three core targeted development programmes, utilising
its patents, which it is intended will run in parallel:

  • development of flexible ''shock resistant'' SPE fuel cells using ITM's
    materials and in situ manufacturing process, with power outputs of 20W;
  • development of rigid SPE fuel cells using ITM's materials and traditional
    fuel cell manufacturing process with a power output of 250W; and
  • development of an electrolyser with a 500Winput power rating.

ITM has already produced and tested working but low rated laboratory examples of
devices which represent starting points for two of the three targeted programme
areas.

ITM anticipates that from these three programmes, application-specific
prototypes will be developed.  These prototypes will be used as demonstration
units to help secure licence agreements and joint venture programmes.

ITM envisages that revenues will primarily be generated via four main avenues:

  • joint ventures;
  • licensing;
  • grant funding; and
  • niche manufacturing opportunities.



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