Plug Power Announces Acquisition of General Hydrogen

    Acquisition broadens electric lift truck portfolio following recent
    acquisition of Cellex Power

    LATHAM, NY and RICHMOND, BC, May 7 /CNW/ - Plug Power Inc. (Nasdaq:  
PLUG), a leader in providing clean, reliable on-site energy products, today
announced the acquisition of General Hydrogen Corporation, a leader in the
development and commercialization of fuel cell power units that provide motive
power for electric lift trucks and other mobile industrial equipment.
    Plug Power paid approximately USD 10 million, consisting of approximately
USD 7 million in cash and the assumption of USD 3 million in senior secured
loans previously made by Plug Power to General Hydrogen, for all of the
outstanding capital stock of General Hydrogen. In addition, the shareholders
of General Hydrogen received warrants to purchase up to 571,429 shares of Plug
Power Common Stock. The warrants become exercisable when Plug Power's Common
Stock trades at a volume weighted average price of USD 7.00 or more for 10
consecutive trading days. The warrants carry an exercise price of USD .01 per
share and expire four years from the date of issuance.
    General Hydrogen is located in Richmond, British Columbia, Canada, within
close proximity to Cellex Power Products, Inc., another top supplier of fuel
cell power solutions for electric lift trucks, which Plug Power acquired last
month. Plug Power plans to integrate the two companies into one operation
managed by Chris Reid, Cellex Power's current President.
    "By acquiring both General Hydrogen and Cellex Power, clear leaders in
their industry, we expect to realize significant technology and operational
synergies as we pursue high-value applications in the material handling
market," said Dr. Roger Saillant, Plug Power's President and CEO. "Further, we
anticipate that higher volume commercial product manufacturing activities will
be established in Plug Power's Latham, N.Y. facility."
    General Hydrogen's initial product focus has been on the larger class 1
sit-down lift trucks that are typically used in manufacturing operations.
Cellex Power has focused its initial product initiatives on class 3 rider
pallet trucks primarily used to transport and select goods within large
distribution centers before delivery to retail stores.
    Both companies are developing fuel cell power units for class 2 stand-up
reach trucks, which provide flexibility and maximum floor space utilization
for large distribution centers. General Hydrogen and Cellex Power are
targeting the estimated USD 1.5 billion motive power market in which lead-acid
batteries are the incumbent technology. Fuel cell power units allow users to
increase productivity and reduce operating costs through a quick hydrogen
refueling process that eliminates the need to change batteries repeatedly
throughout the day. They also eliminate the environmental and safety issues
traditionally associated with lead-acid batteries.
    "We intend to leverage Plug Power's existing commercial infrastructure
and expect to avoid some of the expenditures typically associated with the
transition from a pre-commercial to commercial enterprise," said Dr. Saillant.
"Given Plug Power's financial and operational strength and the combined fuel
cell expertise of the three companies, we expect to accelerate product
development for all three classes of electric lift trucks. This enhanced scale
and breadth of applications will increase the economic value delivered to our
customers while improving our ability to realize meaningful sales volumes."
    Large lift truck fleet users typically operate at least two of the three
electric lift truck classes in their warehouses and therefore require a
battery handling system and associated maintenance labor to meet their
throughput requirements. Having all three electric lift truck classes in its
product portfolio would enable Plug Power to create a much more compelling
value proposition by allowing customers to convert the motive power
requirements for their entire fleets to proton exchange membrane (PEM) fuel
cell technology.
    Coincident with the acquisition of General Hydrogen, Plug Power has
entered into a two-year agreement with Ballard Power Systems Inc. for the
purchase of fuel cell stacks for Plug Power's commercial needs with respect to
electric lift truck applications, replacing the previous agreement between
General Hydrogen and Ballard. The General Hydrogen and Cellex Power products
were designed around the Ballard stack and have generated tens of thousands of
operating hours to validate reliability and performance. Under the new
agreement, Plug Power and Ballard will work together to drive reliable, low-
cost solutions that are expected to significantly improve the outlook for fuel
cell commercialization of material handling applications.
    With the Cellex Power and General Hydrogen acquisitions, Plug Power has
positioned itself to engage both telecommunications and material handling as
attractive near-term markets and central components of the Company's revenue
growth strategy.

    About General Hydrogen Corporation
    General Hydrogen, which was founded in 1999, is headquartered in
Richmond, British Columbia, near Vancouver, and has a sales and service center
in Gallatin, Tennessee. It is a private, Delaware-registered company that
develops and commercializes fuel cell power units and hydrogen fueling
solutions to address the motive power requirements of a variety of electric
lift trucks used in material handling applications in indoor manufacturing
operations and large-scale distribution centers. General Hydrogen uses fuel
cell stacks made by Ballard Power Systems Inc. as a component of its fuel cell
power units. For more information, please visit

    About Plug Power
    Plug Power Inc. (Nasdaq:   PLUG), an established leader in the development
and deployment of clean, reliable, on-site energy products, currently
integrates fuel cell technology into backup power products for
telecommunications, utility and uninterruptible power supply applications, as
well as motive power products for material handling applications. The Company
is actively engaged with private and public customers in targeted markets
throughout the world, including North America, Europe, the Middle East,
Russia, South Africa and South America. For more information about how to join
Plug Power's energy revolution as an investor, customer, supplier or strategic
partner, please visit

    Safe Harbor Statement
    This press release contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, including but not
limited to the expected benefits of the Cellex Power and General Hydrogen
acquisitions. 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, the risk that the General
Hydrogen acquisition is unsuccessful or that the anticipated synergies of the
Cellex Power and General Hydrogen acquisitions are not realized, that unit
orders will not ship, be installed and/or convert to revenue, in whole or in
part; Plug Power's ability to develop commercially viable on-site energy
products; the cost and timing of developing Plug Power's on-site energy
products; market acceptance of Plug Power's on-site energy products; Plug
Power's ability to manufacture on-site energy 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 Plug Power's on-site energy
products; Plug Power's ability to establish relationships with third parties
with respect to product development, manufacturing, distribution and servicing
and the supply of key product components; Plug Power's ability to protect its
intellectual property; Plug Power's ability to lower the cost of its on-site
energy products and demonstrate their reliability; 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 on-
site energy products and other risks and uncertainties discussed under "Item
IA-Risk Factors" in Plug Power's annual report on Form 10-K for the fiscal
year ended December 31, 2006, filed with the Securities and Exchange
Commission ("SEC") on March 16, 2007, and the reports Plug Power files from
time to time with the SEC. Plug Power does not intend to and undertakes no
duty to update the information contained in this press release.

For further information:

For further information: Media, Cynthia Mahoney White of Plug Power
Inc., +1-518-782-7700 ext. 1973, Mobile: +1-518-527-1172,; Investors, Deborah K. Pawlowski of Kei
Advisors, +1-716-843-3908, Mobile: +1-716-310-3949,, for Plug Power Inc; Web Site:;

Organization Profile


More on this organization


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890