Contract

Proton Power Systems PLC
21 April 2008




Press Release                                                    21 April 2008




                            Proton Power Systems plc


                       ('Proton Power' or 'the Company')


         Proton enters partnership with major auto engineering company

Proton Power Systems plc (AIM: PPS), a leading designer, developer and producer
of fuel cells and fuel cell electric hybrid systems for the 'back to base'
market, today announces that its wholly owned subsidiary, Proton Motor Fuel Cell
GmbH ('Proton Motor'), has signed a framework contract with AVL List GmbH, a
leading Austrian automotive engineering company, to collaborate on the
development of fuel cell hybrid systems and related measurement technology.

Under the contract Proton and AVL will share their expertise in engineering and
simulation, improving the overall customer benefit.  AVL and Proton Motor intend
to co-operate very closely in the partnership, where AVL will serve as the
powertrain engineering and measurement technology provider while Proton Motor
will be the proton exchange membrane (PEM) fuel cell system provider.  The
contract establishes the formal basis for the expected joint activities of the
two companies and will accelerate the offer and order procedure, as well as
setting the parameters for intended project contracts.  The framework contract
will last for three years, with the option to extend.

AVL has been active in the development of hybrid drives for over 15 years and is
amongst the leading companies promoting and integrating hybrid systems into
various types of vehicles.  More specifically, the 'back to base' applications
targeted by Proton Motor - such as materials handling, utility vehicles and mass
transport can be commercialised at an early stage as they do not depend on the
existence of a ubiquitous hydrogen infrastructure.  As an example of such an
application, Proton Motor unveiled in September 2007 the world's first '
triple-hybrid' forklift truck incorporating a supercapacitor and battery into an
intelligent fuel cell system.

AVL sees the hybrid as an undisputed, emerging technology in the vehicles
market, as is evident in the product development strategies of all major
automobile manufacturers.  Moreover hybrids involving fuel cell systems are
particularly suited for special on-road and off-road applications as has been
shown by Proton already.  AVL is therefore delighted to be working with Proton
Motor to further develop this important technology for mobile applications.

Felix Heidelberg, CEO of Proton Power Systems plc, said: 'We are proud to be a
partner of such an established and well known name in the automotive industry;
the partnership is a testament to the success of the Proton Power team in
establishing our technical credentials. AVL's commitment clearly affirms us as a
leading developer of hybrid vehicle systems.  With the joint framework now in
place, we look forward to accelerating the conversion of our numerous business
leads into purchase orders in the immediately foreseeable future.'


                                    - Ends -

For further information:
Proton Power Systems plc
Felix Heidelberg, CEO                                 Tel: [phone]
[e-mail]                         www.protonpowersystems.com


Noble & Company Limited
Andy Yeo / Nick Athanas                               Tel: [phone]
                                                                www.noblegp.com

Media enquiries:
Abchurch Communications Limited
Justin Heath / Monique Tsang                          Tel: [phone]
[e-mail]                         www.abchurch-group.com




About Proton Power Systems plc

Proton Power Systems plc is a developer of fuel cells and fuel cell hybrid
systems for motive and back-up power supply. Proton Power has more than 13 years
of experience in the fuel cell market. Through its wholly owned subsidiary,
Proton Motor Fuel Cell GmbH, the Company has developed and produced a fuel cell
module running on hydrogen and integrated this with an energy storage system to
create a hybrid electric fuel cell system. The system harnesses the excess power
generated by the fuel cell during partial load (such as stop-start operations)
and uses the stored energy in peak demand times. The system thus boasts lower
fuel consumption and more consistent levels of power delivery than conventional
combustion engine or fuel cell-only systems, in addition to producing zero
harmful emissions.

Proton Power's market focus lies in industrial applications where 'back-to-base'
refuelling occurs at the end of each shift or work period, such as in the
materials handling and mass transportation sectors. In these markets, the
commercialization of applications is possible at a very early stage, as they do
not depend on the existence of a ubiquitous hydrogen infrastructure. Through
partnerships with leading OEMs such as Skoda and Linde, Proton Power's
technology is already deployed in city buses and forklift trucks.

Proton Power also targets the upcoming market for marine transportation
applications and provides the hybrid fuel cell propulsion system for Europe's
first fuel-cell-powered passenger ferry, which will be operating in Hamburg from
summer 2008.

Proton Power Systems plc was admitted to trading on AIM on 31 October 2006 and
is based in the UK. Its operating subsidiary, Proton Motor Fuel Cell GmbH, is
located in Puchheim, near Munich, Germany.



About AVL List GmbH

AVL is the world's largest privately owned and independent developer of
powertrain systems for internal combustion engines and engine instrumentation
and test systems for engine and vehicle testing.

AVL has been active in the development of hybrid drives for over 15 years and
has expanded capacity significantly in recent years to meet a rapidly increasing
demand for development and testing solutions.  It has completed over 60 hybrid
powertrain development and testing projects at its engineering centres in Europe
and the US for customers around the globe. Further, after the year 2000, AVL
established a fuel cell system engineering team supporting the development of
PEMFC and SOFC systems as well as the integration and control in mobile
applications.

Founded in 1946 and based in Graz, Austria, AVL employs 3640 people and is
represented in 45 countries worldwide.  In 2006 the company had a turnover of
537 million Euros.



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