Category: Uncategorized
April 2, 2004

News Release: Hydrogenics Receives $1.56 Million (CND) Contribution from Sustainable Development Technology Canada at Globe 2004

Hydrogenics Corporation (Nasdaq: HYGS; TSX: HYG), a designer and manufacturer of hydrogen and fuel cell systems, confirmed today a $1.56-million (CDN) contribution from Sustainable Development Technology Canada (SDTC) for a development and demonstration project of fuel cell-powered forklifts. The project will include Class I sit-rider electric forklifts incorporating hydrogen storage, and a refueling station. The potential customer base for Class I forklifts are companies running multi-shift fleet operations, such as many in the automotive and transportation sectors. Forklift fleets are an important market for hydrogen power. Off-road vehicles, including forklifts and other industrial vehicles, contribute nearly 13 per cent of the global total of transportation-related greenhouse gases. Hydrogen fuel cell-powered forklifts are ideal for indoor facilities because they produce no exhaust emissions, and they have significant advantages over traditional battery-powered forklifts.

SDTC's contribution of $1.56 million, announced today at Globe 2004, an international environmental conference in Vancouver, has been leveraged by a $1.98 million funding commitment from a consortium that is led by Hydrogenics. The consortium members include Deere &Company, FedEx Canada, General Motors of Canada, NACCO Materials Handling Group and the Canadian Transportation Fuel Cell Alliance. The total project is estimated to cost approximately $3.54 million.

The project involves outfitting two Class I sit-rider electric forklifts manufactured by NACCO Materials Handling Group with fuel cell propulsion systems. Hydrogenics will supply its HyPM fuel cell power module for the forklifts. Deere &Company and NACCO Materials Handling Group will assist in the integration of the fuel cell systems into the vehicles. The funding also supports the provision of a hydrogen refuelling station that will serve to refuel both forklift vehicles. This refueler is designed and built around Hydrogenics proprietary PEM (proton exchange membrane) technology. Demonstrations of the forklifts and refueler will take place at GM and FedEx operations within the Greater Toronto Area, and potentially other locations, throughout the fall and winter of 2004/2005.

'This project reflects the exciting potential of hydrogen technologies to reduce sources of air pollution and greenhouse gas emissions to help the fight against climate change,'said the Honourable David Anderson, Minister of the Environment. 'We are determined to maintain Canada's position of leadership in bringing these technologies to the marketplace.'

'Canada is committed to developing clean energy technology that can help improve our environment,'said the Honourable R. John Efford, Minister of Natural Resources Canada. 'I am pleased to announce that Natural Resources Canada's Canadian Transportation Fuel Cell Alliance will be contributing $390,000 toward this project.'

'This fuel cell project is just one example of the strides in sustainable development that can be made when partners along the supply chain come together -- product developers, distributors and customers,'said Vicky J. Sharpe, SDTC's President and CEO. 'SDTC is sharply focused on facilitating the assembly of such consortia so that we may accelerate the development and pre-commercialization of clean technologies, and bring the derivative health benefits to Canadians swiftly.'

'This announcement demonstrates Hydrogenics'commitment to developing hydrogen fuel cell products and refueling equipment, and providing turnkey solutions that bring this technology closer to our customers,'said Pierre Rivard, President and CEO of Hydrogenics. 'We are excited to be working with a number of distinguished public and private sector partners on this project as we aim to demonstrate a compelling value proposition for this potential early-adopting market for fuel cells.'

'GM is proud to partner with Hydrogenics and SDTC on this innovative project,'said David Paterson, Vice President of Corporate and Environmental Affairs for General Motors Canada. 'Our involvement in this initiative is a component of GM's significant commitment to invest in cutting-edge fuel cell research. GM intends to be the first manufacturer to sell 1 million fuel cell vehicles profitably, and this project will play a part in our attainment of that goal.'

About SDTC

Sustainable Development Technology Canada (SDTC) finances and supports the development of clean technologies-solutions that address issues of climate change, air quality, soil remediation and water quality to deliver environmental and health benefits to Canadians.

An arm's-length, not-for-profit corporation created by the Government of Canada, SDTC fills the void in the innovation chain between R&D and commercialization -- helping clean-technology developers move their products and solutions through the development and demonstration phases, in preparation for commercialization.

SDTC funds ground-breaking technologies, and fast-tracks their development by helping entrepreneurs connect with partners, formalize business plans, and qualify for venture-capital financing.

About Hydrogenics

Hydrogenics Corporation ( is a leading clean power generation company, engaged in the commercialization of hydrogen and fuel cell technology and test stations for fuel cells. The company is building a sustainable business, in a potentially 'game changing technology'for transportation, stationary and portable power. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in British Columbia, Canada, Japan, the United States and Germany.

Photos from Globe 2004 are available upon request

This release contains forward-looking statements within the meaning of the 'safe harbor'provisions of the U.S. Private Securities Litigation Reform Law of 1995. These statements are based on management's current expectations and are subject to changes in the competitive environment adversely affecting the products, markets, revenues or margins of Hydrogenics'business. Readers should not place undue reliance on Hydrogenics'forward-looking statements. Investors are encouraged to review the section captioned 'Risk Factors'in Hydrogenics'registration statement on form F-10 filed with the Securities and Exchange Commission on February 3, 2004 for a more complete discussion of factors that could affect Hydrogenics'future performance. Hydrogenics undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

SOURCE Hydrogenics Corporation

Gary Brandt, Chief Financial Officer of HydrogenicsCorporation, +1-905-361-3633, This email address is being protected from spambots. You need JavaScript enabled to view it.; or Melody Gaukel ofKetchum, +1-416-544-4906, This email address is being protected from spambots. You need JavaScript enabled to view it., for HydrogenicsCorporation; or Andree Mongeon, Director of Communications of SDTC,+1-613-234-6313, ext. 224, This email address is being protected from spambots. You need JavaScript enabled to view it.; or Richard James of GeneralMotors Canada, +1-905-644-1804, This email address is being protected from spambots. You need JavaScript enabled to view it.

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