DCH TECHNOLOGY'S OUTLOOK OPTIMISTIC FUEL CELL MANUFACTURER HOPEFUL FOR AN INCREASE IN SALES.

Byline: Staff and Wire Services

VALENCIA - A local manufacturer of hydrogen fuel cells and sensors is expecting a prosperous year, with increasing sales and new products, officials said this week.

DCH Technology, Inc., which also manufacturers hydrogen safety services, said the company plans to increase its penetration into lead markets for fuel cell systems and establish new markets for its hydrogen senors.

While expanding its clientele, DCH expects to introduce smaller passive fuel cells that feature a unitized ``plug and play'' design.

``Entering the first full year with our new management team in place, we are confident that 2002 will be a year of significant achievement,'' said John Donohue, DCH president and chief executive officer. ``Overall, we expect to make substantial progress in each business line.''

The company will continue to penetrate the fuel cell adopter markets, including electric utilities, military agencies, and local, regional and national governments, officials said. DCH expects increased sales in fuel cells. The company is currently marketing passive and active proton exchange membrane fuel cell systems for portable and stationary applications.

DCH also expects to introduce a new generation of smaller passive fuel cells, which represents a new level in ease of use - similar to that of batteries while outperforming battery packs and minigenerators in terms of operating and shelf life, constant power output and rapid refueling characteristics.

These systems are targeted at existing demand for low-maintenance, robust power in specialized markets, such as remote field power for telecommunications, pipeline monitoring and environment sampling.

This growth will be driven by the launch of its next generation of hydrogen sensors, called RHS-FET sensors. These sensors are capable of detecting 50 parts per million of hydrogen, a hundredfold increase in sensitivity over current technology.

The company believes these sensors will be both the most effective and cost-efficient solution for hydrogen leak detection and process monitoring. Applications for this new product line include the military and the petrochemical, telecommunications and semiconductor industries. It will also address needs previously unmet in major new markets such as nuclear waste and electric transformer monitoring, as well as the emerging automotive fuel cell market.

DCH also projects continued growth in its hydrogen safety businesses driven by the increasing production, transport, storage and distribution of hydrogen.

DCH's Center for Hydrogen Safety will continue to provide the company with a revenue-generating business. Since its inception in April, the CHS has won every contract for which it has submitted a bid.

The company intends to leverage the reputation it has gained from serving several Fortune 500 companies to attract new customers requiring training in the handling of hydrogen and design of hydrogen systems and facilities - especially the electric utility, automotive, defense and maritime industries.