Technical Update

ITM Power PLC
01 November 2004

1 November 2004

                                 ITM POWER PLC

                                Technical Update

ITM Power ('ITM' or 'the Company'), which aims to provide enabling technology
for the hydrogen economy, stated at the time of its flotation in June 2004 that
its business strategy was to develop its core hydrophilic ionic materials
technology to a point where the Company would maximize returns for shareholders
by creating a greater number and wider spread of licensees. Progress in
developing ITM's technology would be demonstrated through a number of important
milestones to be announced, if achieved.

Further to the recent business update on September 1st 2004, which concerned the
achievement of two such milestones, ITM is pleased to announce a potential,
significant broadening of the pool of future licensees as a result of a research
programme - part-funded by a grant from the UK Government's DTI - to investigate
the application of the Company's hydrophilic ionic materials and one-step
manufacturing process to the design and construction of fuel cells using liquid
alcohols (methanol for example) as a fuel.

Liquid fuelled fuel cells are widely recognised as the preferred route for the
energy supply for portable electronic devices, including new generation mobile
telephones and laptop computers. This is because of their ability to deliver
extended run times to such devices and allowing a fast 'on the move' refueling
capability using a fuel that is convenient to handle and store.

ITM has now successfully completed some initial proving work on the use of its
technology in an alcohol fuel cell. The next stage will move from proof of
concept towards undertaking longevity/durability trials with alcohol fuels. 
To date the programme has defined and undertaken initial work in two areas;
     
(i)  acid based hydrophilic materials suitable for use with methanol fuel,

and

(ii) alkaline based hydrophilic materials.

An alkaline environment is known to be able to promote improved catalysis. ITM's
alkaline-based hydrophilic materials have a ratio of C/Dk (defined as the ratio
of ionic conductivity / methanol diffusion coefficient), which is substantially
better than the conventional solid polymer alternatives. This ratio is an
important indicator of the potential performance of the fuel cell.

These alkaline materials have now been operated as methanol fuel cells and
patents have been filed on the materials and their use in direct
alcohol-in-alkaline fuel cells (Alkaline-DMFC fuel cells).

Outside the DTI-funded programme, ITM has applied its alkaline membrane
technology to a second state of the art liquid fuelled fuel cell by
demonstrating a fuel cell using a solution of sodium boro-hydride in water. This
solution is an alternative route to the development of liquid fuelled fuel cells
for portable applications, and has potential advantages of operational safety as
compared with alcohol fuels.

Jim Heathcote, CEO, ITM Power Plc said: 'We believe that the preliminary results
to date are encouraging for our test program on liquid fuelled fuel cells. We
will begin testing key performance characteristics including power and longevity
in the near future. We shall release results from this and our other development
programs, on an ongoing basis, so that we can keep shareholders fully informed
of our progress'

He added, 'We are very grateful for the support we have received from the DTI
and believe this is an excellent example of the benefits of collaboration
between Government and industry in basic technological research programmes.'

-Ends-


For further information please contact:

Jim Heathcote         David Pannell             John West
                                                Simon Hudson
ITM Power Plc         Durlacher Limited         Tavistock Communications
Tel: [phone]     Tel: [phone]        Tel: [phone]
[e-mail]                               [e-mail]


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