The programme, where Ceres is leading a consortium of other contributors, will
help the Company explore fuel cell stack and system designs which may help
further reduce manufacturing costs and deliver more compact, lightweight
commercial solutions.

Chief Executive Peter Bance said: 'As a high growth UK company exploiting
leading edge energy technology offering significant environmental and economic
benefits, we have enjoyed major government support up to the highest levels.
The widespread commercialisation of our fuel cells could offer substantial CO2
reduction, fuel savings leading to reduced reliance on imports and help to
relieve the strain on the electricity grid - all critical government 
objectives.'

Since winning the Carbon Trust's Innovator of the Year Award in 2003, Ceres has
been described by Prime Minister Tony Blair as a 'world leader', while Energy
Minister Mike O'Brien said the company is 'at the forefront of the race to make
fuel cells a commercially viable technology.'

The award of this contract follows Ceres raising £21.6 million through its
November 25th 2004 listing on AIM in addition to two prior rounds of private
equity funding totalling £10 million over the course of the previous 3 years.

Ceres has also been the recipient of a total of five grants from the DTI and the
Carbon Trust which have contributed to the acceleration of its R&D programme.