Technical Update

ITM Power PLC
19 April 2006


19 April 2006

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


ITM Power, which aims to provide all aspects of the technology necessary to make
the hydrogen economy a commercial reality, is pleased to announce today a major
step in its objective to provide a commercial alternative to replace hydrocarbon
fuels and hence society's total reliance upon their continued supply.

The Company believes that a low cost durable electrolyser is the critical
technology necessary for the economic replacement of hydrocarbon fuels using
renewable energy resources. An electrolyser converts water and electricity into
hydrogen and oxygen. These gases can be stored and used as fuel for combustion
engines, fuel cells, heating and conventional electricity generation. For
hydrogen fuel to be viable, the electrolyser will need to have longevity in
excess of 3,000 hours and a capital cost in the range $120-180/kW to be able to
produce hydrogen which is cost competitive with fossil fuels.

The Company has achieved the following technical advancements, which exceed the
requirements above:

Longevity Testing:

ITM is pleased to announce that its unique low cost membrane technology has been
tested and has achieved 3,500 hours of operation without external evidence of
degradation or loss of performance. As previously announced, the Company
believes that longevity tests are only of practical significance if they are
carried out on an intermittent (on-off) basis. This life test represents 3,500
hours of actual operation at a commercially significant power density in an
overall test programme which now exceeds 5,000 calendar hours.

Cost reduction by the Replacement of Platinum:

(i) As previously announced (March 2006), ITM had successfully replaced platinum
as the catalyst with a nickel alloy on the hydrogen side of its electrolysers.
Further tests using laser ablation of the membrane has confirmed that the nickel
alloy is at least as stable as platinum in this environment.

(ii) The Company has now successfully replaced the remaining platinum (i.e. at
the oxygen evolution electrode) of its electrolysers and operated this
non-platinum system for in excess of 500 hours without external evidence of
degradation or loss of efficiency. Because the materials now under test are less
than 1/3 of the cost of platinum, a further cost saving is expected which should
significantly reduce the cost of the Company's electrolysers below the $164 per
kW level announced in April 2006.

On the basis of these encouraging results, ITM is confident that it will be able
to meet and exceed its technology objectives as set out in January 2006.

These objectives represent a firm basis for seeking commercially viable
applications of ITM's technology because the subsequent 'down stream' equipment
is already well established and in many cases is available 'off the shelf'.

Demonstration Facility:

The Company has built a demonstration facility at its Sheffield premises in
which ITM's electrolyser technology is now being used to convert renewable
electricity into clean (carbon free) hydrogen. This hydrogen is stored and
reconverted into:

(a) Low voltage electricity using an ITM fuel cell equipped with a proprietary
    ITM electronic controller as would typically be required to drive 
    electronic equipment. A DVD player is used in our demonstration.

(b) Mains voltage electricity using a Honda motor generator (modified by ITM to
    run on hydrogen) which is demonstrated powering lighting, heating and
    refrigeration equipment and small electric motors.


(c) Heat using a commercially available gas hob (modified by ITM to run on 
    hydrogen).

These basic outputs i.e. heat, light, cooling, engines, electric motors and
electronics, cover the critical functions of society's energy demand. This
demonstration is a justification of the Company's assertion that the hydrogen
economy depends upon a low cost electrolyser.

Jim Heathcote, CEO, ITM Power Plc, said: 'During the past two years, ITM has
been carefully building the foundations of personnel, science and infrastructure
to create a solid platform to enable genuine mass commercialisation of its
scientific advances. I have always maintained that until the Company had
established the fundamental strength and cost competitiveness of its technology
it should not seek commercial partners or risk depletion of valuable cash
resources through non-commercially viable demonstration programs.

The results we have announced today have been achieved using our patented
materials and processes, ITM therefore controls the technology which has broken
through the barriers which have prevented all previous non-hydrocarbon fuel
systems being anything more than highly subsidised 'curiosities'. The potential
commercial significance of that fact cannot be underestimated.

My objective now is to maximise shareholder value by vigorously pursuing the
commercial production and rapid deployment of our technology. The opportunities,
which are immense, cover virtually all aspects of our energy intensive
lifestyles and offer a real chance to simultaneously help offset Peak Oil,
Climate Change and Energy Security'.

                                    - Ends -

For further information:

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

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.

About the hydrogen economy and ITM Power:

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.

ITM aims to provide all aspects of the technology necessary to make the hydrogen
economy a commercial reality and replace hydrocarbon fuels.

Hydrogen Economy:

   • Term used to describe the use of hydrogen as a critical element in the
     energy economy of the future.

   • 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 it's 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

ITM's Technology:

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.

ITM's ionically conductive polymer materials and manufacturing processes are
used in the production of fuel cells and electrolysers, which are significantly
cheaper than those presently used in production. The technology offers high
conductivity, hydration control and has the benefit of catalyst recycling.
Existing industry standard membrane material is estimated to cost $500 per sq
metre, ITM's membrane costs $5 per sq metre. 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 has patented a new manufacturing process that allows a fuel cell/
electrolyser stack of cells to be made in a single process similar to a mass
production casting process. The process is capable of producing cells or stacks
of any shape that may also be flexible so that they can be moulded into smaller
products, such as mobile phones. The Company has applied this technology to 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.



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