DANBURY, Conn.--FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of ultra-clean, electric power generation plants for commercial and industrial customers, today announced the sale of a 250-kilowatt DFC300MA(TM) power plant to improve availability of reliable electricity to help a U.S. training center meet security requirements and cope with fluctuating power needs that can triple from one season to the next.

The U.S. Marine Corps Air Ground Combat Center (MCAGCC), at Twentynine Palms, Calif., provides year-round instruction to ensure continued readiness of trainees from all branches of the armed forces. More than 50,000 individuals rotate through the facility per year for training sessions that may be 1- to 2-months in duration. The base also supports the day-to-day living needs of more than 10,000 personnel and family members stationed there.

FuelCell Energy's DFC power plant will complement the distributed generation portfolio for the base's power requirements. The DFC300MA power plant will supply on site base load power, with the added benefit of high-efficiency electrical generation and ultra-clean emissions. Situated 45 miles north of Palm Springs, MCAGCC occupies a region of the Mojave Desert where summer temperatures can reach 120 degrees Fahrenheit. With seasonal cooling requirements for trainee and resident populations, electricity demand hit 15-20 megawatts during the summer from a point as low as 6 megawatts during the winter months.

"The fuel cell power plant will complement an array of on-site generation and energy efficiency measures we've installed to increase our energy security and manage our power use at the base," said Gary Morrissett, energy manager of MCAGCC. "It's designed to run parallel to the local electric network, so it provides us with grid support while helping reduce area demand on the power infrastructure."

"Keeping critical facilities such as this training center operating 365 days a year means having reliable and secure primary sources of power," said Herb Nock, Senior Vice President of Marketing and Sales of FuelCell Energy, Inc. "The installation of a fuel cell at Twentynine Palms is an important step in providing reliable power to these important facilities using a low emission, efficient source of electrical generation."

Nock added that MCAGCC will have the option to add additional fuel cells at a later date to upgrade its DFC power plant generating capacity to one megawatt.

This is the first DFC power plant sale by FuelCell Energy's distributor, LOGANEnergy, who will serve as prime contractor and manage the MCAGCC project. The DFC300MA power plant is being purchased for the base by the Construction Engineering Research Laboratory, a division of the U.S. Army Corps of Engineers. FuelCell Energy expects to ship the unit to California by July 2006. Financial details of the sale were not disclosed.

About Direct FuelCells

Direct FuelCell(R) (DFC(R)) power plants from FuelCell Energy generate electricity without combustion. Their highly efficient electrochemical reactions are thousands of times cleaner than plants burning fossil fuels, are significantly quieter and are up to twice as efficient as conventional power plants. These characteristics make fuel cells appropriate for generating base load electricity where customers face cost, reliability, security or environmental issues with their existing electric power sources. DFC power plant emissions are so minimal that California, with the most stringent air pollution standards in the U.S., characterizes them as an "ultra-clean" distributed generation technology, similar to wind and solar energy.

About FuelCell Energy

FuelCell Energy, Inc., based in Danbury, Conn., is a world leader in the development and manufacture of high temperature fuel cells for clean electric power generation. The company has developed commercial distribution alliances for its carbonate Direct FuelCell products with world class companies such as PPL Energy Plus, Caterpillar, Alliance Power, Chevron Energy Solutions and LOGANEnergy in the U.S.; Marubeni Corporation in Asia; MTU CFC Solutions in Europe; and Enbridge Inc. in Canada. FuelCell Energy developed its patented Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through its Office of Fossil Energy's National Energy Technology Laboratory.

The sub-megawatt DFC fuel cell power plant is a collaborative effort using Direct FuelCell(R) technology of FuelCell Energy and the Hot Module(R) balance of plant design of MTU CFC Solutions, GmbH, a subsidiary of DaimlerChrysler. FuelCell Energy is also developing next generation high temperature fuel cell products, such as a diesel fueled marine Ship Service Fuel Cell, a combined-cycle DFC/Turbine(R) power plant, and, through its investment in and partnership with Versa Power Systems, solid oxide fuel cells for applications up to 100 kilowatts. More information is available at http://www.fuelcellenergy.com.