Size/cost breakthrough

Ceres Power Holdings plc
23 May 2005



Research Update - Ceres Power Holdings plc ('Ceres Power' or the Company')

Larger fuel cells cheaper to produce and easier to assemble

AIM-quoted Ceres Power has succeeded in making its high-performance fuel cell
four times larger.

This means that the fuel cell, which among other uses is destined for use in
domestic boilers to generate electricity as well as heat, will become much
cheaper to manufacture and dramatically simpler to incorporate into commercial
products.

Ceres Head of Product Development Andrew Baker said: 'Our development so far has
used fuel cells the size of an After Eight mint. Now we can produce cells the
size of a CD case, which produce 4 times as much power. This dramatic scale up
in size should slash manufacturing costs and represents a key step towards using
the cell in applications where greater outputs of electricity are needed.'

Fuel cells generate electricity and heat when gas is passed over one surface and
air over the other. Unlike most others, the Ceres Power cell is manufactured
using low cost materials and cheap mass production techniques.  It does not need
platinum as a catalyst, and will run on natural gas as well as hydrogen.

The latest breakthrough follows the announcement last week of other recent
technology firsts, when Ceres exceeded a clutch of key industry performance
benchmarks previously unmatched by other companies in the sector.

Larger fuel cells technical background:

Ceres Power's third generation solid oxide fuel cells are based on patented
metal-supported thin ceramic layer technology.  The inherent compatibility of
the thermally matched metal and ceramic layers in the Ceres design has enabled
much larger cells to be developed as stack components.

This successful quadrupling of the cell size has major commercial significance.
The dramatic reduction in part count not only applies to the four-fold reduction
in the number of cells in the stack but also to other components as a result of
the simplified stack design.  As a consequence, the projected manufacturing
costs for materials, components, and assembly operations have been slashed and
the expected stack manufacturing throughput rates significantly increased.
Stack volume and weights based on the enlarged cells should make the Ceres
technology attractive for a broader range of market applications where these
parameters are critical.

The combined technological improvements and cost benefits from reduced part
count and simplified stack design represent a major step towards mass market
commercialisation.

For further information contact:

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

                      This information is provided by RNS
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