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ITM Power PLC 11 June 2004 ITM POWER PLC ('ITM POWER' OR THE 'COMPANY') ITM POWER COMMENCES TRADING ON AIM FRIDAY 11 JUNE £10 MILLION RAISED THROUGH PLACING OF 20,000,000 NEW ORDINARY SHARES OFFER OVERSUBSCRIBED ITM Power, which provides the enabling technology for the hydrogen economy, announces that its ordinary shares have been admitted to trading on AIM today under the epic ITM. ITM Power has successfully raised £10million before expenses, following a placing with institutions and other investors by its Nominated Adviser and Broker Durlacher Limited of 20,000,000 new ordinary shares at 50p per share. The offer was oversubscribed and Durlacher closed the book a week early. The Company's market capitalisation at the placing price is £45.7million. The newly issued shares represent approximately 22% of the Company's issued share capital upon admission to trading on AIM. The proceeds of the placing will be used to develop ITM Power's products and technology and to protect the Company's intellectual property. Jim Heathcote, ITM Power's Chief Executive said: 'We were delighted to be able to close our placing over a week early having received an excellent reception from UK and European investors and are extremely pleased with the prestigious shareholders that have decided to back us at this exciting stage in our development. 'We believe that the potential market for our technology is enormous and that our unique materials and production methods will enable the manufacture of both fuel cells and electrolysers to be carried out at economically viable levels. We are very excited about the Company's future and believe that we have the team and technology in place to build a strong and profitable business.' - Ends - For further information please contact: Jim Heathcote David Rae / Katherine Roe John West / Gemma Smith ITM Power Plc Durlacher Limited Tavistock Communications Tel: 01780 740574 Tel: 020 7459 3600 Tel: 020 7920 3150 e-mail: fjh@itm-power.com e-mail: jwest@tavistock.co.uk Notes to Editors: About the hydrogen economy and ITM Power: ITM is a leading technical innovator of fuel cell and electrolyser technologies for the hydrogen economy. 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. Hydrogen Economy: • Term used to describe the use of hydrogen as the economy's main source of energy • 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 its 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 Electrolysers, via an electrochemical process, convert electricity (from renewable energy inputs) and water into hydrogen and oxygen and in turn fuel cells, via a similar process convert hydrogen and oxygen into electricity (which can be stored) and water. PEM fuel cells developed so far are currently estimated to cost several thousand dollars per output kW (for example, in February 2004, the US Department of Energy estimated the current cost of a fuel cell to be approximately $3,000 per output kW) whereas petrol engines are currently estimated at $50 per output kW. ITM's Technology ITM Power plc has developed and patented the keys to revolutionise the hydrogen economy and is set to become one of the UK's leading innovator within the alternative energy sources industry. ITM's electrically conductive polymer materials and manufacturing processes are used in the production of fuel cells, which are significantly cheaper than those presently used in production. The technology also offers high conductivity, hydration control and has the ability to recycle the platinum catalyst, which aids the formation process of the cell. 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 patented manufacturing process allows a fuel cell or an entire stack of cells to be made in a single process. The proprietary polymer membrane is a thin sheet that allows hydrogen ions to pass through it. The membrane is coated on both sides with metal alloy particles (such as platinum) and is inserted at the heart of the fuel cell. The process is capable of producing a flexible shape that can be moulded for smaller products, such as mobile phones. The Company has also developed 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. ITM's plan is based upon three core targeted development programmes, utilising its patents, which it is intended will run in parallel: • development of flexible ''shock resistant'' SPE fuel cells using ITM's materials and in situ manufacturing process, with power outputs of 20W; • development of rigid SPE fuel cells using ITM's materials and traditional fuel cell manufacturing process with a power output of 250W; and • development of an electrolyser with a 500Winput power rating. ITM has already produced and tested working but low rated laboratory examples of devices which represent starting points for two of the three targeted programme areas. ITM anticipates that from these three programmes, application-specific prototypes will be developed. These prototypes will be used as demonstration units to help secure licence agreements and joint venture programmes. ITM envisages that revenues will primarily be generated via four main avenues: • joint ventures; • licensing; • grant funding; and • niche manufacturing opportunities. On admission to AIM the following shareholders have an interest in 3 per cent. or more of the Company's issued share capital: Percentage of issued share capital on admission Shareholder Number of shares Dr Donald Highgate1 14,000,000 15.32 Dr Jonathan Lloyd1 14,000,000 15.32 John Wreford1 14,000,000 15.32 RAB Special Situations L.P. 8,825,000 9.66 Peter Hargreaves1 5,045,180 5.52 1 a director of ITM Power Plc This information is provided by RNS The company news service from the London Stock Exchange

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