New Agreement for PPS

Proton Power Systems PLC
27 February 2007


                Extension to Purchase and Cooperation Agreement


February 27, 2007... Proton Power Systems plc ('PPS'), through its subsidiary
Proton Motor Fuel Cell GmbH ('PM'), one of the world's leading electric hybrid
fuel cell companies, today announced an extension to a purchase and cooperation
agreement to provide fuel cell stacks to an international technology leader for
their 1 to 5KW family of products.


The original agreement was signed in December 2005 and this extension follows
the successful completion of a number of milestones and is worth approximately
190k Euros.


Delivery of the fuel stacks is expected to begin in April this year and will
continue for approximately 12 months, at which point a final design will be
agreed for commercial volume production.


Felix Heidelberg, PPS' Chief Executive Officer, said, 'The extension to this
agreement underlines how close we are to achieving the industry's long term
ambition of volume production of fuel cells. Proton Power is well placed to be
the first to achieve this'


For further Information contact:


Media:

Gavin Anderson & Company [phone]


Ken Cronin 

[e-mail] 

Marie Cairney

[e-mail]

Commercial:

Proton Power Systems [phone]

Joachim Kroemer

[e-mail]


Notes to Editors

PPS, through its subsidiary Proton Motor Fuel Cell GmbH ('PM') has developed 
and
produced a standard fuel cell module, fuelled by hydrogen integrated with an
energy storage system to create a hybrid electric fuel cell system capable of
providing power during peak demand situations. The market focus is on industrial
applications where 'back-to-base' refueling occurs, on site, at the end of each
shift or work period.


The Group has identified opportunities to replace lead-acid batteries with their
PEM fuel cell systems and has identified niche markets in the materials handling
and mass-transportation sectors where hybrid electric fuel cell systems offer
considerable advantages over conventional engine technology and fuel cell only
drive systems. The Group has identified two initial market segments in which the
Directors believe the advantages of hybrid electric fuel cell systems will lead
to economic benefits for the end user - forklift trucks and buses. In most
cases, vehicles operate within a defined radius or return to central points of
operation.


The many advantages over current commercial alternatives include lower fuel
consumption, longer periods between refueling, shorter refueling, consistent
levels of power delivery and zero harmful emissions.


PM's technology development has been undertaken with the key objectives of
multiple applications and volume production.


PPS was admitted to trading on AIM on October 31, 2006.



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