New Development Programme

ITM Power PLC
05 July 2006


Strictly Embargoed until: 0700 hrs, 5 July 2006



                                 ITM Power Plc

                            ('ITM' or 'the Company')

                   Hydrogen Combustion Development Programme


ITM Power Plc is pleased to announce today that it has initiated a joint
development programme with The University of Hertfordshire ('the University') to
develop an electrolyser refuelling system for use in hydrogen internal
combustion engine powered cars. Hydrogen can be burnt in conventional internal
combustion engines and after conversion, enables the vehicle to produce
virtually zero emissions.

The development programme has been initiated following ITM's successful cost 
over life electrolyser testing. ITM's electrolyser, using water and low tariff 
electricity, could address the cost issues of hydrogen fuel and the requirement
to build a hydrogen refuelling infrastructure.


The aim of the joint development programme is to improve internal combustion
engine emissions; with the potential to bring very significant advances in the
global quest to move to zero carbon fuels.


The programme includes the following objectives:


   • To develop a safe, low-cost modification package for a town car to run
    on hydrogen and to provide the ability to refuel the vehicle at home or at
    work, independently of the current fuel delivery infrastructure.


   • To investigate the conversion of existing petrol fuelled electrical
    generating sets to run on hydrogen produced from zero carbon sources, such
    as solar and wind.


   • To investigate how the addition of hydrogen to the diesel combustion
    process can either reduce fuel consumption or pollutants and to provide the
    necessary on-board hydrogen generator system for diesel engines.

ITM will own all intellectual property (IP rights) including any new discoveries 
made during the development carried out under this programme.

Jim Heathcote, CEO, ITM Power Plc, said: 'We believe this development programme
 will help to demonstrate the importance of electrolysers for use in the 
automotive industry. The University is renowned for its close automotive 
industry relationships, excellent test facilities and high calibre engineers. 
These capabilities are crucial to the success of this development programme.'

Derek Eade, Director of Sustainable Energy Technologies, Hertfordshire 
University added: 'We believe that the development programme that we are 
jointly undertaking could be significant to the automotive industry. We hope it 
will accelerate the market penetration of clean renewable transportation fuels. 
Widely distributed electrolysers could address the cost and availability 
problems that have prevented the adoption of hydrogen as a competitive fuel. We 
hope the programme will successfully place the University and ITM Power at the 
forefront of the hydrogen economy.'

                                      Ends


For further information please contact:

Gemma Chandler        Tim Linacre / Katherine Roe  Simon Hudson/ Clemmie Carr
ITM Power Plc         Panmure Gordon               Tavistock Communications
Tel: [phone]    Tel: [phone]           Tel: [phone]
Mob: [phone]

Notes to Editors


ITM Power plc believes it has developed and patented the keys to revolutionise
the hydrogen economy and is set to become one of the UK's leading innovators
within the alternative energy sources industry.


Electrolyser:


An electrolyser converts water and electricity into hydrogen and oxygen. These
gases can be used as fuel for combustion engines, fuel cells, heating and
conventional electricity generation.


Existing electrolysers cost in the region of $2,000/ kW and the US Department of
Energy 2010 target is $300/kW for an electrolyser stack.


ITM Power has identified low cost electrolysers as a vital component to replace
hydrocarbon fuels with hydrogen. ITM has achieved costs as low as $164 / per kW.




                      This information is provided by RNS
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