Testing Program will Advance Product Development for Asian Market Opportunities   
 

Palcan Power Systems Inc. (TSX VENTURE:PC) is pleased to announce it has been commissioned by British Columbia's University of Victoria, Institute for Integrated Energy Systems (IESVic), to prepare and supply two scooters for comparative research purposes. One scooter will be a commercially available battery electric scooter and the second is a similar scooter converted to fuel cell power by Palcan.

The two scooters will be tested using the same driving cycles on specialized IESVic test equipment utilizing mathematical models and research software. The Institute's research, funded by the Western Diversification Fund and other research grants, is expected to provide substantial operational and design data to Palcan. The testing will result in improved system design models to be developed enabling fuel cell vehicle designers to optimize fuel cell stack, fuel cell control systems, power balancing, and electric drive system design.

To validate these computer models and to really understand the power characteristics of low-speed electric vehicles and fuel cell systems, systematic testing and vehicle experiments are essential. Palcan's fuel cell-battery hybrid scooter will employ a 1 kW PalPac(TM) fuel cell power module and a hybrid energy storage subsystem. This modular design allows the use of different batteries and super capacitors for energy storage while also incorporating different on-board hydrogen storage devices like Palcan's rare earth metal hydride hydrogen storage canisters or compressed hydrogen gas bottles.

The original battery powered electric scooter used for comparative purposes has the same drive train and power rating as the fuel cell powered scooter, with a top speed of 45 km/h. It is powered by four sealed, lead acid batteries having four to eight hour charge times.

"Due to the nature of the development and the advanced technology involved, we selected Palcan Power Systems as the preferred company to supply the fuel cell powered scooter at the best price and delivery time for our testing program," states Dr. Zuomin Dong, Institute for Integrated Energy Systems, University of Victoria, British Columbia.

"Being a pioneer in the low output fuel cell market, Palcan has the experience in the specific integration requirements of fuel cell scooters," said Dr. John Shen founder and CEO of Palcan. "This comparative testing and the data that comes out of it is an important step towards the goal of delivering commercial fuel cell power products for the burgeoning Asian markets," he added.

About Palcan

The Company is a leading developer and manufacturer of proton exchange membrane (PEM) fuel cell systems under 5 kilowatts and metal hydride hydrogen storage products. The Company's proprietary and patent pending technologies form the core of the PalPac(TM) Power Products. A unique and integrated fuel cell power system aimed directly at low output applications where batteries and smaller internal combustion engines (ICE) are the power source. These include stationary, marine, military and portable power applications. The Company's manufacturing, research and development facilities are located in Burnaby, British Columbia and Jiaxing, China. The Company trades on the TSX Venture Exchange under the symbol "PC".

Certain matters discussed in this press release may contain forward-looking statements that may involve risk and uncertainties. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including but not limited to; product development delays, the ability to attract and retain business partners, competition from other fuel cell manufacturers, competition from existing power technologies, and the ability to provide the capital required for product development, operations and marketing. Investors are encouraged to review the Company's filings on SEDAR at www.sedar.com

The TSX Venture Exchange has neither reviewed nor approved of the contents of this news release.
 
Contacts

Palcan Power Systems Inc.
Daniel Gallagher
Corporate Communications
Toll Free: 1 (866) 548-8868 or (604) 422-8868
info@palcan.com
http://www.palcan.com