Progress Report

ITM Power PLC
04 December 2006


Monday, 4 December 2006

                                 ITM Power Plc
                            ('ITM' or 'the Company')

                                Progress Report

Subsequent to this morning's announcement on the collaboration with ABRO, a
Trading Fund of the Ministry of Defence, the Director's of ITM Power wish to
provide the following update on the joint development programme for the use of
electrolytic hydrogen in vehicle engines with the University of Hertfordshire.

   •The operation of a diesel engine using a small addition of electrolytic
    hydrogen from an on-board ITM electrolyser to the existing diesel fuel:

The Company has instituted a series of tests using the expert resources of the
University to determine if an admixture of hydrogen to diesel fuel can in some
circumstances significantly improve the operation of the diesel engine, reducing
both fuel consumption and emissions.

As a result of initial tests, the University has reported significant
improvements in the steady speed power output of a diesel engine when supplied
with hydrogen, indicating that the addition of hydrogen has a positive impact in
the compression ignition combustion process. This would be expected to convert
into fuel savings if the hydrogen was supplied by an ITM electrolyser mounted
on-board the vehicle, though the extent of the fuel savings will depend upon the
duty cycle of the vehicle. While no formal trials have yet been reported, the
Company has been advised by the University that in addition it expects
significant improvements to be achieved to the emissions output from the engine.

These early results from the diesel engine tests have established the technical
basis for the MoU announced today. ITM anticipate that an extended series of
trials involving a range of different engines and operational conditions will be
necessary to define the full potential of the technology. This trial programme
could take more than 6 months to complete.

In view of the commercial sensitivity and potential value of these results it is
not expected that any further technical up-dates regarding this collaboration
will be made until trials have been completed.

   •Development of a Home Electrolyser Refuelling System and Bi-fuel car

The second activity concerns the development of a home Electrolyser Refuelling 
System and Bi-Fuel car. This is intended to demonstrate the ability to refuel an
existing petrol engined car with hydrogen anywhere that has access to water and
electricity. The car should run entirely on hydrogen for up to 25 miles before
automatically switching to petrol for longer journeys. This project is
progressing satisfactorily and, as planned, is on track to roll out a 10kW ITM
electrolyser home refuelling device and a Bi-Fuel vehicle before the end of June
2007. This aspect of ITM's work is not included in the MoU with ABRO and thus
there are no commercial restrictions on the Company making further technical
announcements as this project proceeds.

Ends

For further information please contact:

Gemma Chandler
ITM Power Plc
Tel: [phone]
Mob: [phone]





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