May 14, 2002 — H Power Corp., a fuel cell development company, has announced that Kamata Inc., a propane distributor in Japan serving a group of 800,000 consumers, has installed and is field testing one of H Power’s 4.5 kW Residential Cogeneration Units (RCUs) at Kamata’s Gotenba employee facility in Gotenba-city, Japan.

This installation marks the first field test of a propane-powered proton exchange membrane (PEM) system for an actual load in the Japanese residential market.

The propane-powered unit is being used to provide the electricity, heat and hot water requirements of a home owned by Kamata for the use of its employees. Kamata will field test this unit and provide all the test data to H Power to assist in completing the development of a commercial version of the RCU for Kamata’s customer base.

Toshitaka Arikawa, General Manager of Kamata’s Construction Division, noted, “We are very pleased to be working with H Power on this groundbreaking project. We are very impressed with H Power’s fuel cell stack and reformer technology, and the unit has operated in a continuous mode with no problems at all since being installed. We look forward to the continued testing of the system, and can see that we are getting closer and closer to the debut of a commercial version.”

H. Frank Gibbard, Chief Executive Officer of H Power Corp, added, “These field tests by Kamata further strengthen our presence in the Japanese marketplace. We are proud that the H Power RCU is the first ever propane powered PEM fuel cell system being field-tested in a real life application in Japan. Customer feed back from field tests, such as the Kamata unit, is essential to the development of next generation designs for the commercial market in Japan.”

About H Power Corp.
H Power Corp. is a fuel cell development and manufacturing company, focused on near-term commercialization of fuel cell systems. H Power has designed proton-exchange membrane (PEM) fuel cell systems to provide electricity for a wide range of applications including residential cogeneration products for homes, and power units for portable applications.

H Power is addressing markets for its products in the U.S., Japan and Europe through its relationships with Energy Co-Opportunity (ECO), Mitsui, Osaka Gas, Kurita Water Systems, Gaz de France, PSA Peugeot Citroen, Fortum Oy and Naps Systems Oy, Air Products & Chemicals, Ball Aerospace, and Dupont. H Power has manufacturing facilities in Monroe, North Carolina and Montreal, Canada. For additional information, please visit our website at www.hpower.com.

About Kamata Inc.
Kamata, with its thirty-nine offices throughout Japan, is a propane distributor, supplying propane to over 800,000 groups in Japan.