Technical Update

ITM Power PLC
18 October 2006



18 October 2006


                                 ITM Power Plc
                            ('ITM' or 'the Company')

                                Technical Update


ITM Power is pleased to announce today that it has successfully achieved the
following technical advances, which includes one of the new milestones set out
at the time of the Company's full year results in July 2006.


Fuel Cell Cost Reduction Programme:

In parallel with the development of ITM's low cost electrolyser programme, the
Company announced in July 2006 that it would apply its technology to reduce the
capital cost of fuel cells operating using hydrogen.

The Company has reduced the cost of fuel cells to $900/kW by increasing the
power output of its cells to 360mW/cm2. ITM materials have now been
successfully operated at powers in excess of this level. Consistent and
repeatable performance at these power densities has been achieved.

These initial cells use a platinum catalyst and the achievement of a specific
performance cost target is therefore dependent upon the cost of platinum and the
value of the US dollar. The Company is particularly pleased to be able to
achieve this target in view of the recent increase in the cost of platinum to
over $1200/troy oz averaged for the six months to end September 2006, during
which time the sterling/US dollar exchange rate was £0.54. For the avoidance of
doubt, the Company will continue to use this platinum price and dollar
conversion rate when calculating the costs of its fuel cells for the remaining
stages of the programme.


Electrolyser Longevity Testing:

ITM is continuing durability testing of its unique low cost membrane technology
as applied to electrolysers.  These tests continue to show good results. The
long duration test has now achieved 6000 hours of operation on an intermittent
test cycle without external evidence of degradation or loss of performance. This
life test represents 6000 hours of actual operation at a commercially
significant power density in an overall test programme which now exceeds 10000
calendar hours.

Jim Heathcote, CEO, ITM Power Plc, said: 'One of our strategies is to be able to
provide a low-cost electrolyser and a low-cost fuel cell that could provide the
essential technology necessary to convert intermittent low-value renewable
energy (wind, solar) into a reliable non-fossil energy supply. ITM have
identified multiple applications for this technology and have entered into early
stage discussions with third parties about possible collaboration in order to
bring these products to market.'


Ends


For further information:

Gemma Chandler

Corporate Communications Officer
ITM Power Plc
Tel: [phone]
Mob: [phone]

or visit www.itm-power.com



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