H Power Fuel Cell Systems Successfully Tested in Several Applications for the U.S. Air Force.

Business Editors

CLIFTON, N.J.--(BUSINESS WIRE)--Dec. 5, 2001

H Power Corp. (NASDAQ: HPOW), a leading fuel cell development company, today announced that its products performed successfully in tests conducted by Concurrent Technologies Corporation (CTC) on behalf of the U.S. Air Force's Air Expeditionary Force Battlelab (AEFB), Common Core Power Production (C2P2) Initiative. The U.S. Air Force Battlelabs are chartered to demonstrate the military utility of existing technologies and accelerate emerging technologies to meet USAF needs and requirements.

Using H Power's hydrogen-powered fuel cell systems, the U.S. Air Force's Air Expeditionary Force Battlelab C2P2 Initiative successfully demonstrated that Proton Exchange Membrane (PEM) fuel cells have the potential to provide the core of all AEF power production, from powering an office in a tent city to aircraft ground support equipment on the flight line. During the C2P2 project, the capabilities of H Power's systems underwent four tests:

-- The use of one H Power fuel cell system to power an office suite, followed
by the use of the same fuel cell to operate a flight line lighting unit (4.0 kW
at 120 volt, 60 Hz AC).

-- The use of two H Power fuel cell systems bussed together to supply power to
a simulated aircraft load on the ground (8kW at 208Y/120 volt, 400 Hz AC).

-- The combination of three H Power fuel cell systems to power industrial shop
equipment and various aircraft support equipment (12kW at 480Y/277 volt 60 Hz
AC).

-- The incorporation of two H Power fuel cell stacks into a
commercial-off-the-shelf battery operated Towbarless Tow Vehicle, marking the
first practical fuel cell application in aviation support equipment. The fuel
cells powered the tow vehicle's drive train and also generated 120 volt, 400Hz
aircraft servicing and maintenance power. With the fuel cells, the hybrid tow
vehicle is now more efficient than a diesel powered model and no longer
requires the use of grid power to be recharged.

Operation of the Tow Vehicle was also demonstrated with a moderate load using fuel cell system power alone.

H. Frank Gibbard, Chief Executive Officer of H Power, commented, "We are very pleased to have been given this opportunity by the U.S. Air Force to demonstrate the effectiveness of our products and technology. As a leading developer of high- and low-power fuel cell systems, we recognize the significant advantages that fuel cells can bring to users, and are pleased to have demonstrated these features, as well as the systems' reliability in these tests. We look forward to continuing our relationship with CTC and the USAF in the future."

Master Bob Wertz, Director Aerospace Ground Support Equipment Systems of AEFB, commented, "The C2P2 project and H Power's systems performed as we hoped they would, demonstrating that fuel cells can be used as common, interchangeable power sources for Air Force's expeditionary power production and aircraft support needs. For the USAF, the advantages of this emerging technology include significantly reduced logistics and training requirements, a reduction in the amount of hazardous waste and emissions, lower preparation time to achieve mobility, and a reduction in vulnerability due to decreased heat signature. Taken together, these factors provide a compelling reason for the Air Force to continue exploring the feasibility of fuel cell applications."

About H Power Corp.

H Power Corp. is a leading fuel cell development company and one of the first providers to complete a commercial sale of a proton-exchange membrane (PEM) fuel cell system. PEM fuel cells generate electricity efficiently and cleanly from the electrochemical reaction of hydrogen and oxygen. Hydrogen is typically derived from conventional fuels such as natural gas or propane, and oxygen is drawn from the air. H Power's fuel cells are designed to provide electricity for a wide range of stationary, portable and mobile applications including residential cogeneration products for rural, remote homes, and backup power units for mobile applications. For additional information, please visit our website at www.hpower.com.

About CTC

Concurrent Technologies Corporation (CTC) is an independent, nonprofit, applied research and development organization providing management and technology-based solutions to a wide array of clients representing state and federal government and the private sector. Established in 1988, CTC operates from more than 20 offices throughout the United States with a staff of over 1,100 employees. One factor that has contributed to CTC's growth and success is the quality and creativity of the services it provides. As a corporation operating for scientific, educational, service, charitable, and similar purposes in the public interest, CTC is not organized primarily for profit. Therefore, CTC is able to focus more of its attention on improving operations and the quality of its client services.

Certain expectations and projections regarding the future performance of H Power discussed in this news release are forward-looking and are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These expectations are based on currently available competitive, financial and economic data along with the Company's operating plans and are subject to future events and uncertainties. Management cautions the reader that the following factors, amongst others, may cause H Power's plans to differ or results to vary significantly from those expected, including the impact of competition, technology development, pricing, market demand and marketplace acceptance, and other risks set forth from time to time in H Power's filings with the Securities and Exchange Commission, including, but not limited to the risks set forth in H Power's Annual Report on Form 10-K. H Power undertakes no obligation to publicly release the results of any revisions to forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. The events highlighted herein should not be assumed to be items that could affect the future performance of the Company.