Corporate and Technical Due Diligence

RNS Number : 6204G

ITM Power PLC

10 June 2013

ITM Power plc

("ITM Power" or the "Company")

Corporate and Technical Due Diligence

ITM Power (AIM: ITM), the energy storage and clean fuel company announces that, following the conclusion of non-disclosure agreements, it has allowed three corporate customers access to a data room of technical and corporate information. The three customers, which at this stage are confidential, are a global gas group, an oil major and an aerospace and defence company. The outcomes of the due diligence processes, outlined below, have been very positive.

The Company prepared a suite of documentation for data room examination and disclosed technical files together with R&D pipeline activities, planned product development and details of costs and cost reduction programmes going forward.

The process included witnessed testing of two PEM electrolyser stack platforms against specific operating conditions, the purpose of which was to verify performance, durability and rapid response characteristics. In addition, bespoke system designs capable of accepting direct renewable power and rapidly modulating power profiles have been examined and comprehensively tested on-site. The results have further added to confidence in ITM Power's core technology, its product development process and after sales support.

One aspect central to all technical due diligence has been the capability of the stack to modulate its output in response to changing power profiles. This is particularly important for large scale Power-to-Gas energy storage systems which require rapid response times. In general, grid balancing service payments for frequency control increase with responsiveness. In one set of repeated tests, the response of a large scale stack was measured to modulate from zero to full power in approximately 0.2 seconds, outperforming industry measurements and response times previously reported by the Company. Engaging with customers who are assessing the requirement for large scale electrolyser plant has necessitated the detailed technical interaction and modeling in order to map the application.

Another important aspect of the process has been evidencing cost reduction with volume and supply chain quality. The Company has consolidated much of its supply chain, leading to significant efficiencies in purchasing and significant cost reductions. ITM Power has been able to articulate to the three customers a clear roadmap to cost reduction and manufacturing scale-up, appropriate to planned market penetration.

ITM Power CEO, Dr. Graham Cooley, commented: "We always knew that full engagement with large global companies in industries focused on hydrogen would require a high degree of technical due diligence. I am delighted to report that our technology and our team performed as well as we could hope and in some cases, even better.

"I believe we have a world leading product in our unique Power-to-Gas offering and it is good to know that important players in the industry share this view. We now look forward to developing partnerships with some or all of the customers who have been through the due diligence process with us and reporting the results of these negotiations to shareholders in due course."

For further information please visit www.itm-power.com or contact:

ITM Power plc

Graham Cooley, CEO

0114 244 5111

N+1 Singer (Nominated Adviser & Broker)

Shaun Dobson / Jenny Wyllie

020 7496 3000

Tavistock Communications

Simon Hudson / Kelsey Traynor

020 7920 3150

About ITM Power

ITM Power plc was admitted to the AIM market of the London Stock Exchange in 2004 and raised its initial funding of £10m gross in its IPO. Further funding rounds of £28.5m in 2006 and £5.4m in 2012 have been completed. The Company has now made the transition from a research and development company to a product manufacturer and technology provider. The Company has both a strong base of intellectual property and engineering expertise for providing complete hydrogen solutions. The Company has been successful in developing strategic industry partnerships in the following projects:

· Participation in H2USA

http://www.itm-power.com/news-item/participation-in-h2usa/

· Participation in North Sea Power-to-Gas Platform

http://www.itm-power.com/news-item/participation-in-north-sea-power-to-gas-platform/

· First Sale of 'Power-to-Gas' Plant in Germany

http://www.itm-power.com/news-item/first-sale-of-power-to-gas-plant-in-germany/

· First Sale in Russia

http://www.itm-power.com/news-item/first-sale-in-russia/

· First Sale in Japan

http://www.itm-power.com/news-item/first-sale-in-japan/

· Electrolysis to play a key role in Hydrogen Roadmap for UK

http://www.itm-power.com/news-item/electrolysis-to-play-a-key-role-in-hydrogen-roadmap-for-uk/