Trading Statement

RNS Number : 4787I

ITM Power PLC

03 July 2013

3 July 2013

ITM Power plc

("ITM Power" or "the Company")

Trading Update

ITM Power (AIM: ITM), the energy storage and clean fuel company, announces a Trading Update for the Company in advance of its results for the year ending 30 April 2013 which it expects to announce in August 2013.

ITM Power has made the following significant progress toward the full commercialisation of its technology, both in the UK and internationally, as countries around the world advance their plans for hydrogen infrastructure roll-out, namely:

· Founding member of the Californian Hydrogen Business Council Hydrogen Energy Storage (HES) Program

· Formation of a Danish subsidiary to participate in the Danish markets for Power-to-Gas energy storage and hydrogen mobility

· Sale of a Power-to-Gas unit to the Thüga Group a consortium of German utilities and participation in the German Energy Agency's Power-to-Gas Strategy Platform

· New grant awards in the last year for collaborative projects with large multi-national company partners totalling £4.25million over the next 3 years

· Publication of the UKH2Mobility report outlining the roll out of refuelling stations in the UK, 50% of which will be based on electrolysis for hydrogen production.

This traction has not yet fed through to meaningful revenues and although the loss for the financial year to 30 April 2013 is expected to be in line with current market expectations, revenues are significantly lower than expected, at £87k, due to delays in the delivery to, and commissioning of, plant at customer premises where the customer has not been ready to accept delivery of the Company's products. ITM Power has controlled its costs in the period to achieve a net loss for the year in line with market estimates. Cash as the period end was £5.9m.

Looking forward, the Company is continuing to develop its key markets in Germany and the USA with the order book now standing at £0.93m and product development and collaborative project grant awards continuing to flow.

However, delivery times and hydrogen plant deployment is slipping and the Company does not now see the commercial recognition, and therefore revenues, of significant deployment until the financial year 2015 as the major H2 Mobility programmes ITM Power is involved with begin their roll-out. In the Power-to-Gas energy storage sector, the Company's product for the Thüga Group in Germany will lead a commercial campaign in Europe and there is significant interest in that sector in the USA.

In light of the delayed roll out in both H2 Mobility and Power-to-Gas sectors, the Company now expects that its move into profitability will be delayed.

ITM Power CEO, Dr Graham Cooley, said: "The progress we have made, and are making, is real and substantial. Our strategy is to embed the Company in as many hydrogen infrastructure programmes around the world as we can and to make ITM Power's products the must-have solution to the problem of surplus renewable energy - converting it either to fuel or injecting resultant hydrogen into gas grids. This is a medium to long term value creation strategy but one that I believe will reward shareholders despite any short term financial cost."

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 plc

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:

· ITM Power Joins Californian Hydrogen Business Council Hydrogen Energy Storage (HES) Program

http://www.itm-power.com/news-item/itm-power-joins-californian-hydrogen-business-council-hydrogen-energy-storage-hes-program/

· German Energy Agency Power to Gas Strategy Platform

http://www.itm-power.com/news-item/itm-power-joins-german-energy-agencys-power-to-gas-strategy-platform/

· Incorporation of ITM Power ApS Denmark

http://www.itm-power.com/news-item/incorporation-of-itm-power-aps-in-denmark/

· 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/