FuelCell Energy, Inc. (NasdaqNM:FCEL), a leading manufacturer of efficient, ultra-clean power generation plants for commercial and industrial customers, today announced that its modular 250-kilowatt (kW) Direct FuelCell(R) (DFC(R)) power plant has met the California Air Resources Board's (CARB) stringent distributed generation emissions standards for 2007, qualifying the DFC 300MA power plant for state-sponsored economic incentives.

The DFC300MA joins FuelCell Energy's other DFC products that previously attained this certification. By meeting this standard, the Company's DFC300MA power plant is categorized as an 'ultra-clean' distributed generation technology, exempting it from air quality district permitting requirements (http://www.arb.ca.gov). In addition, the certification qualifies the Company's products for preferential rate treatment by the California Public Utilities Commission (CPUC) including the elimination of "exit fees" and "standby charges" for customer electric generation.

"This certification ensures our customers in California continue to have access to certain incentive funding for purchasing our DFC power plants, which we believe will further drive repeatable business in our second largest geographic market," said R. Daniel Brdar, FuelCell Energy's President and COO. "These incentives and preferential rate treatment, combined with our cost-reduction efforts, allow us to provide end-users with reliable firm base load power with more control of their energy costs."

The California Self Generation Program (SGIP) provides $400 million per year of incentive funding for renewable and ultra-clean technologies on the basis of $2500/kW for DFC products operating on natural gas and $4500/kW for our DFC products operating on renewable fuels such as anaerobic gas from wastewater treatment facilities.

Introduced in June 2005 with a production cost of approximately $6,000/kW, the DFC 300MA power plant production cost has been further reduced to $4,600/kW.

DFC power plants address two significant energy issues in California -- high energy costs and strict air quality standards. The high efficiency of DFC power plants not only results in less fuel needed per kilowatt hour of electricity and lower operating costs, but reduced amounts of carbon dioxide. In addition, DFC power plants provide greater energy reliability and energy security because they are located directly at customer sites.

The Company's 250-kW DFC300A power plant was certified under CARB 2007 standards in May 2003 and its megawatt class DFC1500 power plant was certified under these standards in September 2004.

About FuelCell Energy

FuelCell Energy develops and markets ultra-clean power plants that generate electricity with up to twice the efficiency of conventional fossil fuel plants and with virtually no air pollution. Fuel cells produce base load electricity giving commercial and industrial customers greater control over their power generation economics, reliability and emissions. Emerging state, federal and international regulations to reduce harmful greenhouse gas emissions consider fuel cell power plants in the same environmentally friendly category as wind and solar energy sources -- with the added advantages of running 24 hours a day and the capacity to be installed where wind turbines or solar panels often cannot. Headquartered in Danbury, Conn., FuelCell Energy services over 40 power plant sites around the globe that have generated more than 80 million kilowatt hours, and conducts R&D on next-generation fuel cell technologies to meet the world's ever-increasing demand for ultra-clean distributed energy. For more information on the company, its products and its worldwide commercial distribution alliances, please see www.fuelcellenergy.com.