New premises for Proton

Proton Power Systems PLC
05 July 2007


        Fuel cell expert, Proton Power Systems relocates to new premises

      Move enables expansion of business activities and volume production


Munich, 5 July, 2007 - Proton Power Systems plc ('PPS'), through its subsidiary
Proton Motor Fuel Cell GmbH ('PM'), an expert in industrial fuel cells, fuel
cells and fuel cell electric hybrid systems, today announced its relocation to
new company headquarters in Puchheim, near Munich. The new site, which can
accommodate around 100 staff, will house the company's administration, research,
development, production and test departments, with further potential for
expansion as required. The move to new facilities, which will be completed by 6
July, will enable Proton Motor to scale business and enter into volume and
automated production, and will provide an important platform for increased
marketing of its fuel cell technology.

The new headquarters, which has been customised in line with PM's specific
requirements, currently covers an area of 3,000 square metres. With scope for
extending the building by another 2,000 square metres, the site could provide
space for around 200 staff in the future. The leasing agreement is designed so
that any extension, which has approval already in place, can be built quickly
allowing the company to expand its capacity at short notice in response to
growing market demands.

Commenting on the move, Felix Heidelberg, CEO of Proton Power Systems, said:
'This move will enable us to realise our strategy of automated and volume
production - a key requirement for cost-effective production of our PM Basic, PM
Package and PM Turnkey product lines. We will be able to meet the constant
increase in demand we face now and in the future, and we are brilliantly
equipped to turn our business plan into reality.'

The former five, separately located, sites in Starnberg had become too small for
the company and unable to accommodate further expansion. The new site in
Puchheim, on the other hand, enables the company to consolidate on a single site
with sufficient space for the next three to five years. Single site operation
will also lead to increased efficiency and facilitate further and progressive
reductions in unit costs. The infrastructure in and around Puchheim was also one
of the key factors in the decision to move, as the company now benefits from
excellent transport links provided by access to motorways and public transport
e.g. to Munich airport.

PM can now be reached at the following address:
Proton Motor Fuel Cell GmbH
Benzstrasse 7
82178 Puchheim
Germany

About Proton Power Systems plc.

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.

Further information can be found at www.protonpowersystems.com or from:

Commercial: Nomad:

Proton Motor Fuel Cell GmbH Bell Lawrie

Dr. Joachim Kroemer A division of Brewin Dolphin Securities
Benzstrasse 7 Alan Stewart
82178 Puchheim Tel: [phone]
Germany
Tel.: [phone] - 0
Fax: [phone] - 99
[e-mail]
www.proton-motor.de

Media:
Gavin Anderson & Company
Marie Cairney/Ken Cronin
Tel.: [phone]
[e-mail]/[e-mail]



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