Technical Update

ITM Power PLC
17 March 2006


Embargoed until, 0700 hrs, 17 March 2006



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

                                Technical Update


       Electrolyser Chemistry Advances Lead to Important Cost Reductions

ITM Power aims to provide all aspects of the technology necessary to make the
hydrogen economy a commercial reality and facilitate the replacement of
hydrocarbon fuels. The Company has identified low cost electrolysers as a vital
component of this development and to date ITM has achieved costs as low as $275/
per kW through the use of acid based solid polymers and platinum catalysts. ITM
Power is pleased to announce today that it has made further significant
electrolyser cost reductions through the application of new chemistries to both
membranes and catalysts.

ITM Power has developed a '50/50' electrolyser system employing Nickel catalyst
on one side (the hydrogen electrode) and Platinum catalyst on the oxygen
electrode. This system has been operated successfully for 500 hours without
external evidence of degradation. The system has been independently costed at
$164/ per kW, notwithstanding an additional allowance for increased cost of the
ITM HPE(TM) (hydro-polymer-electrolyte) membrane structure. This represents a
significant advance in ITM's progress to reduce electrolyser *cost-over-life;
capital cost is an important component of this calculation. In accordance with
its normal policy of increasing its intellectual property portfolio, ITM has
filed patents covering the membrane technology essential to this development.

Key points on introducing Nickel in partial replacement of Platinum:

  * Historically, alkaline circulating liquid electrolyser systems have been
    made which have successfully used Nickel catalysts, but there is no
    generally available industry standard alkaline membrane.

  * The Nickel material used in the catalyst-electrode is a commercially
    available low cost alloy (non-proprietary).

  * There is no obvious performance penalty involved in the use of a Nickel
    catalyst when used in conjunction with the ITM HPE(TM)membrane. The operating
    characteristics of the 50/50 system have proved to be closely similar to
    those of the 'pure' Platinum system used in the Company's Mk 4 electrolyser
    which was costed at $275/ per kW.

  * The costing given here assumes a product run of 100,000 kW to amortise
    the set up costs, but no allowance has been made for Platinum recovery at
    the end of life.

ITM is unique in having a patented technology which allows a wide range of
material properties to be engineered into its ionomeric polymers. These
materials can be made with either acid or alkaline properties. The cost of
conventional PEM (Proton Exchange Membrane) electrolysers is high, due to costly
acidic membranes which use Platinum catalysts.

In addition, ITM has used its alkaline solid hydro-polymer technology to make
and operate an electrolyser using a Nickel catalyst on both sides of the
membrane. However, following stringent testing, ITM discovered that the Nickel
products used in the system did in fact break down (in respect of efficiency and
longevity because of degradation of the Nickel material on the oxygen side of
the electrolyser). ITM is continuing to research this area and will keep the
market informed of developments.

Jim Heathcote, CEO, ITM Power said: 'The Company continues to focus on its
research to further reduce the cost of electrolytic hydrogen production and on
the means of reconverting hydrogen for general use. An integrated approach to
both aspects of the problem is critical to the eventual economic replacement of
hydrocarbons.

ITM has stated that the critical element required to enable the production of
hydrogen, which is cost competitive with hydrocarbon fuels, is a low cost and
durable electrolyser. Our cost reduction programmes are being conducted in
parallel with our separate and ongoing durability testing. This development
increases the likelihood that ITM will be able to produce cost competitive
hydrogen. We believe that further cost reductions are possible.'


Ends


For further information, please contact:

Gemma Chandler         Lulu Bridges / Simon Hudson    Tim Linacre/ Katherine Roe
ITM Power Plc          Tavistock Communications       Panmure Gordon & Co
Tel: [phone]     Tel: [phone]             Tel: [phone]
Mob: [phone]



Notes to editors:

*cost-over-life is the fully amortised cost of the electrolyser divided by its
working lifespan to give a cost of conversion of a unit of energy.




                      This information is provided by RNS
            The company news service from the London Stock Exchange