Performance milestone

Ceres Power Holdings plc
16 May 2005

Ceres' fuel cell sets new global standards in performance tests

The fuel cell being prepared for use in homes and industry by Ceres Power, the
AIM-quoted company ('the Company') has recorded a level of performance
significantly exceeding previously reported industry benchmarks in new tests
just completed at its Sussex operating base.

These results, when compared with competing SOFC technology, mean Ceres now
expects even better performance from longer lasting fuel cell products which
should be even cheaper to manufacture.

The tests, conducted over periods of more than 3,000 hours, showed that Ceres'
third generation fuel cells significantly exceed previously reported global
industry standards of performance.

Ceres Power Chief Technology Officer, Nigel Brandon, said: 'We have beaten
critical industry benchmarks on four fronts at once - power output, integration,
durability and manufacture. Our customers will recognise these dramatic results
as key achievements on the road to unlocking global mass markets.'

The Ceres fuel cell has been more than 15 years in development, and is now under
testbed manufacture at the company's Crawley headquarters. It can be powered by
natural gas as well as hydrogen, so that it can be introduced before the advent
of a hydrogen economy.  In addition, the fuel cell does not require expensive
platinum catalysts and is produced using established mass production techniques.

Prototype development and system integration programmes now underway are
focusing on complete power generation units to produce heat and electricity from
home boilers, stand-alone generators and other products. Global industrial gases
giant BOC is in partnership trials with Ceres using bottled gas to generate
electricity from the fuel cell.

Ceres' breakthrough technology was recently recognised as industry leading
through the award of the prestigious Gold Medal for 2005 from the Institute of
Materials, Minerals and Mining.

Technical background

Ceres' third generation solid oxide fuel cells operate effectively over the
temperature range of 500 degrees C and 600 degrees C, delivering peak power 
densities over 550mW/cm2.  In addition, stacks of 40 cells have delivered over
97% of the total expected output based on single cell performance, demonstrating
stack engineering excellence.  Stacks have been operated for over 3000 hours,
meeting current industry durability targets of 1% degradation per 1000 hours. 
Stacks have also been thermally cycled over 25 times with no measurable loss in
performance and hundreds of cycles have been completed on individual cells
without failure.  Ceres has now established statistically capable manufacturing
processes, with batches of hundreds of cells being produced meeting quality
standards.

For further information contact:

Peter Bance, Chief Executive, Ceres Power Ltd:           [phone]
Allan Piper, First City Financial Public Relations:      [phone]
                                                         [phone]


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