Fraser Mackenzie Limited, CIBC World Markets Inc., and Sprott Securities Inc. who were engaged in connection with the proposed private placement on a best efforts basis will continue to advise FCT with respect to an appropriate time to revisit the financing.

"We have witnessed strong interest in our private placement, but the performance of the market has pushed our stock to pricing levels at which we believe the dilutive impact of the financing on our current shareholders would exceed the benefits," stated Chris McFarlane, FCT's CFO. "Our cash balance and order book will allow us to seek a financing at a more appropriate valuation in the future."

Over the past decade, FCT has designed and built custom fuel cell power systems. Fuel cell systems are the future of power generation because of their environmental benefits and high efficiency. FCT's SOFCs are designed to operate on a variety of readily available fuels and provide a highly efficient, environmentally friendly method to produce on-site electricity and heat that can be used in a variety of remote, commercial, industrial and residential applications. FCT is now delivering its 5 kW SOFC systems to customers around the world, and in 2005 has shipped systems to customers in Canada, Brazil, and the USA.