Re Contract

Proton Power Systems PLC
20 December 2006



          Proton receives first commission under €2.5 million contract



London, 19 December 2006 Proton Power Systems plc ('PPS'), one of the world's
leading fuel cell hybrid systems companies, today announced that the Group has
been commissioned to provide L-3 Communications Corporation ('L-3
Communications') with a $99,000 fuel cell system to be delivered in Q1 2007.


This agreement forms the first contract under a €2.5 million purchase and
procurement agreement with L-3 Communications entered into in March 2006. Under
the terms of that agreement, PPS' subsidiary Proton Motor Fuel Cell GmbH (PM) is
developing a fuel cell system, to be commissioned in a series of orders over the
course of the next three years. This first fuel cell system is expected to be
used in L-3 Communication's technology test center.


Additionally, L-3 Communications has placed a $45,200 service and engineering
order with PM, comprising additional documentation and hardware and training,
effective immediately.


Felix Heidelberg, PPS' Chief Executive Officer, said: 'We are delighted to have
the received the first order under this significant contract. We have a cost
effective modular solution which provides an effective and economic way to
combat climate change, and we look forward to working with L-3 Communications.'


Separately, PM also announced that it had been informed by its customer Tecnobus
SpA (Tecnobus), that for reasons internal to the company, Tecnobus is unable to
continue work on its project involving using fuel cell systems on battery buses
in Italy. However Tecnobus has confirmed that it wishes to keep open its
existing strategic collaboration with PM.


As a result, PM has agreed to repurchase for a consideration of €40,000 the
unused as good as new fuel cell systems purchased by TecnoBus for €90,000.


For further Information contact:


Kate Hill                 Gavin Anderson & Company             [phone]
Marie Cairney


Joachim Kroemer           Proton Power Systems               [phone]




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