News Details

June 27, 2001 - Latham, N.Y. � Plug Power, Inc. (NASDAQ: PLUG), announced today that it has entered into a non-binding Memorandum of Understanding (MOU) with GE Fuel Cell Systems, L.L.C. (GEFCS), GE MicroGen, Inc. (GEMG), and GEPS Equities Inc., and a separate non-binding MOU with DTE Energy Technologies, Inc., a subsidiary of DTE Energy (NYSE: DTE). These MOUs define new, expanded distribution agreements for Plug Power's Proton Exchange Membrane (PEM) fuel cell systems for stationary power applications and confirm new cash equity investments in Plug Power. The changes proposed in the MOUs are subject to negotiation and completion of definitive agreements to our current distribution agreements with GEFCS and DTE Energy Technologies, Inc.

The MOU between Plug Power and certain GE entities includes provisions to:

� Expand GEFCS's exclusive, global (outside of a 4-state territory served by DTE Energy Technologies, Inc.) distribution rights to include PEM fuel cell-powered generators manufactured by Plug Power, of any electric power output, including greater than 35 kW, for use in any stationary power applications, including uninterruptible power supply and telecommunications applications.

� Increase Plug Power's ownership in GEFCS to 40 percent, from 25 percent currently. GE MicroGen's ownership interest in GEFCS will be reduced from 75 percent to 60 percent.

� Grant GEPS Equities $5 million of shares in Plug Power common stock. In addition, GEPS Equities has made a binding commitment to purchase, for $5 million in cash, additional shares of Plug Power common stock, at a price equal to the offering price in Plug Power's public offering of common stock, currently in registration. GEPS Equities currently owns 5.25 million shares in Plug Power, which represents an 11.8 percent ownership stake.

A separate, but parallel, MOU between Plug Power and DTE Energy Technologies was executed expanding DTE Energy Technologies' exclusive distribution rights to include Plug Power-manufactured PEM fuel cell-powered generators of any size output for use in any power application, except for propulsion, within the states of Michigan, Illinois, Ohio and Indiana.

Separately, Edison Development Corporation, another DTE Energy subsidiary, has agreed to purchase, for $5 million in cash, additional shares of Plug Power common stock at a price equal to the offering price in Plug Power's public offering of common stock, currently in registration.

"We are very pleased with the strengthening of the relationships with our distribution partners, GEFCS and DTE Energy Technologies," said Roger Saillant, CEO of Plug Power. "We believe that the broad nature of these MOUs provides the framework required to deliver the strategy as outlined to our Board of Directors and shareholders back in April."

"GEFCS is pleased to have reached this level of agreement on the range of issues covered by the MOU," said Barry Glickman, President of GEFCS. "GEFCS looks forward to working with Plug Power to evaluate the customer requirements for the additional product sizes and applications contemplated by the MOU."

"DTE Energy believes that Plug Power fuel cells greater than 35 kW will be a significant factor in helping energy companies like DTE Energy meet growth and reliability requirements at a lower cost than alternatives" said Anthony F. Earley Jr., Chairman and Chief Executive Officer of DTE Energy.

Plug Power designs and develops on-site electric power generation systems utilizing proton exchange membrane fuel cells for stationary applications. The Latham, N.Y.-based company was founded in 1997, as a joint venture of DTE Energy Company and Mechanical Technology Incorporated. Plug Power Holland was founded in February 2000 as the first European operation base of Plug Power.

Safe Harbor Statements under Private Securities Litigation Reform Act of 1995: The material at this Plug Power Web page includes statements which are not historical facts and are considered "forward- looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Plug Power's current views about future events and financial performance. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "plan," "anticipate," and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from Plug Power's expectations, and Plug Power expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to, the following: (i) the cost of development and market acceptance of Plug Power's fuel cell systems, (ii) competitive factors, such as price competition and new product introductions, (iii) the cost and availability of products, (iv) the cost of complying with current governmental regulations, (v) unanticipated expenses or delays in resolving Year 2000 computer issues by either Plug Power or those with whom Plug Power does business, and (vi) other factors detailed from time to time in Plug Power's filings with the Securities and Exchange Commission.

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