MISSISSAUGA, Ontario--Hydrogenics Corporation (TSX:HYG ;NASDAQ:HYGS), a leading developer and manufacturer of hydrogen and fuel cell systems, today provided an update on its first quarter business activities.

"We concluded that production delays will cause near term revenue expectations for our OnSite Generation business to be lower than previously anticipated," said Pierre Rivard, President and Chief Executive Officer of Hydrogenics. "The production delays are a result of supply chain and component quality issues, which we believe we are addressing through appropriate corrective measures. We anticipate that deliveries will return to historic levels commencing in the latter part of the fiscal year, once component procurement and production cycles are re-established."

The Company anticipates that revenues will range between $4.5 and $6.5 million depending on deliveries made in the last week of the first quarter and meeting revenue recognition guidelines. Revenues in the OnSite Generation business unit are expected to be in the range of $1.3 to $2.3 million. Order flow and shipments in our Power Systems and Test Systems business units are meeting our expectations at this time. Additionally, the Company anticipates that it will secure a minimum of approximately $7.0 million of new orders in the first quarter of 2006.

"We are pleased by the continued demand for our products as evidenced by securing approximately $7.0 million of new orders in the quarter, the majority of which are attributable to our OnSite Generation business. These new orders, coupled with a record $20.4 million of new orders reported in the fourth quarter, provides a strong order backlog to execute against. We anticipate releasing our first quarter financial results on May 15, 2006 and will provide a comprehensive update at that time," added Rivard.

Management will host a conference call and webcast at 10:30 a.m. EST today to discuss matters in greater detail. Participants should dial 416-695-5259 to access the conference call or visit the company's website at least 15 minutes early to register for the webcast. The webcast will be available following the conference call on the company's website.

About Hydrogenics

Hydrogenics Corporation (www.hydrogenics.com) is a leading global developer of clean energy solutions, advancing the Hydrogen Economy by commercializing hydrogen and fuel cell products. The company has a portfolio of products and capabilities serving the hydrogen and energy markets of today and tomorrow. Hydrogenics, based in Mississauga, Ontario, Canada, has operations in North America, Europe and Asia.