Government of Canada Invests Over $4.2 Million in Hydrogenics' Fuel Cell Initiatives

TORONTO-- Hydrogenics Corporation (Nasdaq: HYGS - TSX: HYG), a designer and manufacturer of hydrogen and fuel cell systems, today unveiled the first of four Hydrogenics' projects to be part of Toronto's Hydrogen Village. The unveiling of the Company's HyLYZER(TM) hydrogen refueler took place at the Canadian National Exhibition (CNE) as part of the CNE's Green Day event. Hydrogenics also announced it has received a CDN $4.25 million strategic investment from the Government of Canada's Hydrogen Early Adopters (h2EA) program that will help in establishing the four unique projects in which Hydrogenics will lead a consortium of partners. The total value of the projects is over CDN $10 million.

"We are pleased to be at the core of the larger Hydrogen Village initiative and to have this show of government support," said Pierre Rivard, President and CEO of Hydrogenics. "These projects and the technology portfolio that they encompass are at the heart of what Hydrogenics does. It will allow us to showcase our technologies in our home town and demonstrate the potential for early market adoption in several key industries like fleet transportation, light mobility transportation and back-up power generation."

Hydrogenics' HyLYZER(TM) refueler at Exhibition Place is Toronto's first public hydrogen refueling station. During the CNE the refueler will use electricity generated by the Wind Turbine, sited at Exhibition Place, to produce clean hydrogen. The hydrogen will be used to refuel a range of fuel cell powered demonstration vehicles at the event, all powered by Hydrogenics' fuel cell power module technology. The vehicles on site include a forklift, a John Deere commercial work vehicle, and a GEM(TM) 'neighborhood' vehicle.

As part of Toronto's Hydrogen Village it is hoped that the initiatives this investment supports (described below) will act as catalysts for more development in Toronto's Hydrogen infrastructure. Projects over the next two years include:

    -- Fuel Cell Powered Utility Work Vehicles
      Four fuel cell powered utility work vehicles will be showcased in two
      phases (2004 and 2005). Throughout this demonstration phase these
      vehicles will perform regular duties at Exhibition Place and other
      designated locations.  The project will also demonstrate critical on
      and off-board diagnostics and monitoring equipment. Participants in
      this demonstration include John Deere ePower Technologies, Exhibition
      Place and Greenlight Power Technologies (a division of Hydrogenics).

    -- HyLYZER Refueling Station
      Fuelled by wind energy from the wind turbine located at Toronto's
      Exhibition Place, the HyLYZER refueling station will be capable of
      producing approximately 65 kg of hydrogen per day, an amount sufficient
      to fuel up to 20 vehicles per day. In this project the hydrogen
      produced will be used to fuel the hydrogen powered John Deere vehicles
      mentioned above, as well as other vehicles that are introduced in the
      development of the Hydrogen Village. Participants in this project
      include Exhibition Place, the City of Toronto, and Toronto Renewable
      Energy Corporation.

    -- Back-up Power Generator
       A hydrogen fuel cell power module will be used for a backup power
      generation solution at a cell tower site. Partners in this project
      include Bell Canada and Emerson Network Power Group, formerly known as
      Marconi Communications.

    -- Hybrid Fuel Cell / Battery Delivery Vehicle
       This project will demonstrate a hybrid fuel cell delivery vehicle in a
      commercial fleet application. Hydrogenics' HyPM(TM) power module
      technology will be integrated with batteries to offer an efficient
      zero-emission alternative to Purolator Courier Ltd's diesel/electric
      powered fleet vehicles as that company undertakes its 'Greening the
      Fleet' program. The project also includes the commissioning of a
      HyLYZER(TM) Refueler providing on-site hydrogen production, storage and
      dispensing capabilities. Partnerships in this project include Purolator
      and Canadian Transportation Fuel Cell Alliance.
 

About Hydrogenics

Hydrogenics Corporation (http://www.hydrogenics.com) is a leading clean power generation company, engaged in the commercialization of fuel cell technology and test stations for fuel cells. The company is building a sustainable business, in a potentially "game changing technology" for transportation, stationary and portable power. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in British Columbia, Canada, Japan, the United States and Germany.

This release contains forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Law of 1995. These statements are based on management's current expectations and are subject to changes in the competitive environment adversely affecting the products, markets, revenues or margins of Hydrogenics' business. Readers should not place undue reliance on Hydrogenics' forward-looking statements. Investors are encouraged to review the section captioned "Risk Factors" in Hydrogenics' registration statement on form F-10 filed with the Securities and Exchange Commission on February 3, 2004 for a more complete discussion of factors that could affect Hydrogenics' future performance. Hydrogenics undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.