The Australian Placing was designed to allow existing investors to participate in a placement at the same price as the recently completed UK Placing and the Company was pleased with the substantial interest shown by existing shareholders, particularly retail shareholders.

The offer for 5,500,000 ordinary shares at A$0.50 (21.25 pence) each, to raise up to A$2.75 million, closed on 17 March 2006 with subscriptions for 7,733,000 Ordinary Shares (equivalent to A$3,866,500).  The oversubscriptions of 2,233,000 Ordinary Shares will be allocated under the Company's 15% exception to the ASX Listing Rules.

The Company expects to dispatch holding statements for these new Ordinary Shares on 27 March and these Ordinary Shares to be admitted for quotation on the ASX and AIM on or around 30 March.     

Inteq Limited was corporate advisor and lead manager to the Australian Placement.

CFCL has lodged a form 3B with ASX for the quotation of the additional shares.

Ceramic Fuel Cells Ltd (CFCL) is a publicly listed company (ASX / AIM code CFU) and world leader in developing solid oxide fuel cells.  CFCL's fuel cells have the potential to meet significant market demand in Europe, UK and Asia for clean, efficient and reliable electricity for use on site and sale back into the power grid.  With 100 skilled staff and extensive patented technology, CFCL is pursuing partnerships for manufacture, production and use of its fuel cells in delivering electricity in homes, offices and industry around the world.