Plug Power Announces Agreement to Acquire Cellex Power



    
    Proposed acquisition advances Plug Power's market engagement strategy
while
    diversifying product portfolio
    

    LATHAM, N.Y., and VANCOUVER, British Columbia, March 15 /CNW/ -- Plug
Power Inc. (Nasdaq:   PLUG), a leader in providing clean, reliable on-site
energy products, today announced execution of a definitive agreement to
acquire Cellex Power Products Inc., a leader in fuel cell power solutions for
industrial vehicles.
    Plug Power and Cellex Power, a private Canadian company, have signed a
definitive stock purchase agreement and expect to complete the acquisition in
April. Plug Power intends to continue Cellex Power's current operations in
Richmond, near Vancouver, British Columbia, upon completion of the
transaction, which is subject to satisfaction of customary closing conditions.
Plug Power will pay USD 45 million in cash for all of Cellex Power's
outstanding shares. Cellex Power is expected to have approximately USD 8
million in cash and cash equivalents on hand at time of closing.
    Since its inception in 1998, Cellex Power has been developing Proton
Exchange Membrane (PEM) fuel cell power units for electric lift trucks and is
targeting the estimated USD 1.5 billion industrial motive battery market. In
November 2006, Cellex successfully completed beta testing of its zero-
emission, hydrogen fuel cell power units in pallet trucks at two Ohio-based
Wal-Mart distribution centers.
    Cellex Power has focused its initial product initiatives on class 3
electric lift trucks, often referred to as "pallet trucks," that are the
predominant equipment used to transport goods within large distribution
centers. The company's product strategy is to develop a full product portfolio
addressing all three classes of electric lift trucks, enabling complete
conversion of distribution centers and maximizing customer benefit. Cellex
Power's product delivers value to the customer via increased productivity and
reduced fueling time, as well as the elimination of cost, environmental and
safety issues associated with traditional lead acid batteries.
    "Cellex has established itself as the leader in the development of fuel
cell technology for material handling applications," said Dr. Roger Saillant,
Plug Power's President and Chief Executive Officer. "This acquisition marks
Plug Power's continued commitment to providing clean, reliable on-site energy
solutions and to the commercialization of fuel cell technology across multiple
robust market sectors."
    Plug Power considers telecommunications backup and material handling
applications to be attractive near-term markets for PEM fuel cell power and
has selected these as central components of the Company's revenue growth
strategy. In addition, the two applications use complementary fuel cell
technology and have similar electrical output requirements. Plug Power and
Cellex Power expect to realize technology and operational synergies by
leveraging the strengths of both organizations.
    "With Plug Power, we anticipate accelerating the commercialization of our
fuel cell solutions for the multi-billion dollar electric lift truck market,"
said Chris Reid, Cellex Power's President and Chief Executive Officer. "Plug
Power's strong balance sheet and established operational capabilities in
manufacturing, supply chain management and product testing, support and
training will be critical to this effort."
    Plug Power has scheduled a conference call for Friday, March 16th at
11:00 a.m. (EDT) to provide all interested parties with information about the
Cellex Power acquisition. The dial-in phone number for the conference call is
(617) 597-5393, and the pass code is 7584 (PLUG). A webcast of the conference
call can be accessed by selecting the conference call link on the Company's
Web site at www.plugpower.com. A playback of the call will be available on the
Web site for a period following the call.

    
    About Cellex Power Products
    
    Cellex Power is a world leader in developing and commercializing fuel
cell solutions for industrial vehicles. Cellex Power fuel cell solutions
replace the industrial lead acid battery system used today in powering fork
lift truck fleets in large-scale distribution centers. For more information,
please visit www.cellexpower.com.

    
    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. The
Company is actively engaged with private and public customers in targeted
markets, including the United States, Europe, 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 www.plugpower.com.

    
    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 consummation of the Cellex acquisition and the expected
benefits of the proposed Cellex acquisition. 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 Plug Power does not complete the Cellex acquisition, that the
Cellex acquisition is unsuccessful or that the anticipated synergies of the
acquisition 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,
2005, filed with the Securities and Exchange Commission ("SEC") on March 14,
2006, 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, or Mobile: +1-518-527-1172, 
cynthia_mahoneywhite@plugpower.com; or Investor: Deborah K. Pawlowski of Kei 
Advisors, +1-716-843-3908, Mobile: +1-716-310-3949, 
dpawlowski@keiadvisors.com Web Site: http://www.plugpower.com                
 http://www.cellexpower.com

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