News Details

LATHAM, N.Y. � October 17, 2002 -- Plug Power Inc. (NASDAQ: PLUG) announced today an exclusive joint development agreement with Honda R&D Co., Ltd. of Japan, a subsidiary of Honda Motor Co., Ltd., to develop and test an initial prototype home refueling system for fuel cell automobiles at Plug Power�s facilities in Latham, N.Y. and Honda facilities in Japan. Plug Power will integrate one of its GenSys�5C stationary fuel cell systems with additional components necessary for the home refueling concept, which will be supplied by Plug Power and Honda R&D.

The exclusive agreement covers the first phase of what is expected to be a multi-phase development project. Subsequent phases of the product development effort will be addressed in future agreements. The joint development agreement also fulfills the memorandum of understanding that was signed between the companies in May 2002.

Honda R&D will fund Plug Power�s work under the agreement and purchase a second GenSys�5C fuel cell system from Plug Power, as anticipated in the memorandum of understanding in May. Honda purchased its first system from Plug Power in June, which is currently installed and operating at Honda R&D�s facility in Japan.

�This agreement cements an important relationship for Plug Power that will enable us to take the residential fuel cell concept to the next level,� said Plug Power CEO Roger B. Saillant. �There is a clear benefit to Plug Power in collaborating with Honda, one of the world�s most innovative automotive companies. We believe this will be particularly evident to our extended enterprise partners, because the relationship further paves the path between the stationary and automotive fuel cell industries.�

About Home Refueling:
A home refueling system is a fuel cell product that will provide heat, hot water, and electricity to a home, while also providing hydrogen fuel for a fuel cell vehicle. The device will be fueled by natural gas, and is expected to be environmentally friendly due to its high efficiency and low emissions.

About GenSys�5C:
The GenSys�5C, a fuel cell system based on Plug Power�s patented combined heat and power (CHP) technology, captures the heat generated during the production of electricity and makes it available for integration into a heating or hot water system. The system is capable of generating 5kW of electricity and 9kW of heat.

Plug Power designs, develops and manufactures on-site electric power generation systems utilizing Proton Exchange Membrane fuel cells for stationary applications. Plug Power�s fuel cell systems are expected to be sold globally through a joint venture with General Electric and through DTE Energy Technologies in a four-state territory, which includes Michigan, Illinois, Ohio and Indiana. The Company�s headquarters are located in Latham, N.Y., with offices in Washington, D.C. and The Netherlands.

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This press release may contain 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 contain projections of Plug Power�s future results of operations, Plug Power�s product development expectations or of Plug Power�s financial position or state other forward-looking information. In some cases you can identify these statements by forward-looking words such as �anticipate,� �believe,� �could,� �estimate,� �expect,� �intend,� �may,� �should,� �will� and �would� or similar words. You should not rely on forward-looking statements because Plug Power�s actual results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, Plug Power�s ability to develop a commercially viable fuel cell system; the cost and timing of developing Plug Power�s fuel cell systems; market acceptance of Plug Power�s fuel cell systems; Plug Power�s reliance on Plug Power�s relationship with certain affiliates of General Electric; Plug Power�s ability to perform on its multi-generation product plan in a manner satisfactory to GEFCS and DTE; ability to manufacture fuel cell systems on a commercial basis; competitive factors, such as price competition, competition from other power technologies and competition from other fuel cell companies; the cost and availability of components and parts for Plug Power�s fuel cell systems; the ability to raise and provide the necessary capital to develop, manufacture and market Plug Power�s fuel cell systems; Plug Power�s ability to lower the cost of its fuel cell systems and demonstrate their reliability; the cost of complying with current and future governmental regulations; and other risks and uncertainties discussed under the heading �Risk Factors� in Plug Power�s annual report on Form 10-K for the fiscal year ended December 31, 2001, dated March 29, 2002 and filed with the Securities Exchange Commission on March 29, 2002, and the reports Plug Power files from time to time with the Securities and Exchange Commission. Plug Power does not intend to and undertakes no duty to update the information contained in this press release.