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LATHAM, NY – February 4, 2010 – Plug Power Inc. (NASDAQ: PLUG), a leader in providing clean, reliable energy solutions today announces that it signed a commercialization agreement with CITIC GuoAn Mengguli Power Science & Technology Co., Ltd. (MGL), a leader in advanced lithium-ion batteries and materials, for the joint marketing and sales of their co-developed high power lithium-ion battery systems into automotive applications.
In its on-going effort to improve performance and reduce cost of its GenDrive™ products for the material handling market, Plug Power began the development of a lithium based hybrid battery system to replace its nickel-metal hydride hybrid batteries. In November, 2008, Plug Power partnered with MGL to develop an advanced lithium based platform that could be easily configured to meet a range of applications.
Plug Power led the mechanical development as well as creation of a robust battery management system to ensure product performance and safety. MGL focused on optimizing its high power lithium cells and establishing the manufacturing capacity for the cells and the finished battery systems. By the fall of 2009, Plug Power had successfully introduced these products into its class-2 and class-3 GenDrive power units.
Based on the successful introduction of the lithium battery systems into GenDrive products, it became evident that other adjacent markets could also benefit from this sophisticated and configurable technology. While Plug Power and MGL intend to address global market opportunities, the most significant near term market for their battery system technology supports the rapidly growing Chinese hybrid automotive industry. Through this agreement, Plug Power and MGL will first introduce their products to the Chinese automotive industry, where “New Energy” sponsored programs are supporting the deployment of at least 500,000 hybrid and pure electric vehicles over the next four years.
“Plug Power’s GenDrive products have realized significant improvements in both performance and cost through the introduction of this lithium battery system technology,” said Adrian Corless, Plug Power’s CTO. “Plug Power and MGL are now able to use this flexible technology platform to design, build and sell hybrid battery systems which extend into automotive applications that share similar requirements to our GenDrive products.”
“Plug Power is encouraged to see this sophisticated technology adopted into hybrid vehicle applications,” said Andy Marsh, CEO for Plug Power. “Plug Power and MGL are able to build upon a solution developed specifically for our GenDrive product requirements and satisfy the needs of a complimentary business. Most importantly, we were able to do this with limited investment from either company.”
“We are very pleased to continue to expand our technical and business relationship with Plug Power,” said Dr. Wang Yahe, General Manager for MGL. “We believe that both companies will significantly grow their businesses by addressing the large new market opportunities in automotive hybrid battery systems.”
About Plug Power Inc.
Plug Power Inc. (NASDAQ: PLUG), an established leader in the development and deployment of clean, reliable energy solutions, integrates fuel cell technology into motive and continuous power products. The Company is actively engaged with private and public customers in targeted markets throughout the world. For more information about how to join Plug Power’s energy revolution as an investor, customer, supplier or strategic partner, please visit www.plugpower.com.
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Plug Power Inc. Safe Harbor Statement
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the number of GenDrive and GenSys units we expect to ship in 2010 through 2012, our projected revenues for 2010 through 2012, and our expectations for achieving profitability and positive cash flow in 2012. We believe that it is important to communicate our future expectations to our investors. However, there may be events in the future that we are not able to accurately predict or control and that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements, including, without limitation, our ability to reduce product and manufacturing costs; our ability to improve system reliability for both GenDrive and GenSys; our ability to successfully expand our product lines; the risk that unit orders will not ship, be installed and/or convert to revenue, in whole or in part; our ability to develop commercially viable products; the cost and timing of developing our products and our ability to raise the necessary capital to fund such development costs; market acceptance of our GenDrive and GenSys systems; our ability to manufacture products on a large-scale commercial basis; competitive factors, such as price competition and competition from other traditional and alternative energy companies; the cost and availability of components and parts for our products; our ability to establish and maintain relationships with third parties with respect to product development, manufacturing, distribution and servicing and the supply of key product components; the cost and availability of fuel and fueling infrastructures for our products; our ability to protect our intellectual property; the cost of complying with current and future governmental regulations; the impact of deregulation and restructuring of the electric utility industry on demand for Plug Power's energy products; and other risks and uncertainties discussed under "Item IA-Risk Factors" in our annual report on Form 10-K for the fiscal year ended December 31, 2008, filed with the Securities and Exchange Commission ("SEC") on March 16, 2009, and the reports we file from time to time with the SEC. We do not intend to and undertake no duty to update the information contained in this communication.
Media Contact:
Katrina Fritz Intwala
Plug Power Inc.
Phone: (518) 782-7700, ext. 1360
Investor Contact:
Cathy Yudzevich
Plug Power Inc.
Phone: (518) 782-7700, ext. 1448
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