"Our progress in the first quarter was highlighted by major business developments, including the agreement by the principal Interros investors and Norilsk Nickel to invest $217 million in Plug Power, the recasting of the Company's relationship with GE and the execution of follow-on agreements with Honda R&D," said Dr. Roger Saillant, Plug Power's President and CEO. "These transactions are not only significant to the continued development of our technology and to delivering our fuel cells to our target markets, but also strengthen our financial profile and create a strategic framework to keep us on the path to meet our 2006 objectives."

    Key accomplishments against 2006 milestones during the quarter included:

    Secure 500 - 750 new system orders:

    * Received orders for 52 systems during the quarter versus 16 systems
      during the first quarter of 2005.  The first quarter order book included
      a follow-on order for an additional 17 systems via Tyco from Plug
      Power's largest telecom customer to date.
    * Signed agreements with three new channel partners, LOGANEnergy Corp.,
      Pacific Telepoint Inc. and On-Site Energy to distribute and service
      GenCore to select customers in the United States, South Korea and
      Canada, respectively.  The Company currently has 20 distribution
      partners across five continents.

Expand and adjust our global network of strategic partners, extending our presence throughout the world:

    * Executed definitive agreements for a $217 million cash investment in
      Plug Power through Smart Hydrogen, a joint venture between the principal
      Interros investors and Norilsk Nickel, which was formed to participate
      in the global hydrogen economy. The transaction is expected to close
      this summer, subject to approval by Plug Power's shareholders,
      regulatory approvals, including Hart-Scott-Rodino antitrust clearance,
      and customary closing conditions.
    * Restructured relationship with General Electric (GE). In December 2005,
      Smart Hydrogen purchased approximately 2.7 million shares of Plug Power
      common stock from GE.  During the first quarter, the Company terminated
      its GE Fuel Cell Systems distribution joint venture and established a
      new development collaboration agreement through GE's Global Research
      Center.
    * Secured an appropriation from Congress for $2 million in the U.S.
      Department of Defense fiscal year 2006 budget to jointly develop an
      advanced prototype proton exchange membrane (PEM) fuel cell system to
      support Continuity of Operations with Ballard Power Systems, a leading
      developer of PEM fuel cells.

Execute contracts with Honda R&D for ongoing research and the joint design and development of the fourth-generation Home Energy Station (HES):

    * Signed an agreement with Honda to proceed with development of the
      fourth-generation HES, a fuel cell system that provides electricity and
      heat to a home or business, while also providing hydrogen fuel for a
      fuel cell vehicle. The work under this phase of the project will focus
      on continuing to make improvements to the system's size, power output,
      storage capacity and efficiency.
    * Signed an additional parallel agreement with Honda to conduct
      fundamental research and development work that will advance technology
      for future HES generations, as well as more generalized applications
      that are expected to benefit other Plug Power products.
    * Honda R&D of Japan will continue to fund Plug Power's work under these
      two new agreements.

    Financial results:

Total revenue for the first quarter ended March 31, 2006, was $2.3 million, compared to $3.2 million for the first quarter in 2005. The Company continues to defer product and service revenue, a component of total revenue, at the time of sale and amortize that revenue over the period of the underlying service and other contractual obligations. Deferred revenue was $3.3 million at March 31, 2006.

Net loss for the quarter ended March 31, 2006, was $12.1 million, or $0.14 per share, compared to $12.5 million, or $0.17 per share, for the same period in 2005. Effective Jan. 1, 2006 the Company adopted Statement of Financial Accounting Standard No. 123 (revised 2004), "Share Based Payment," which requires the Company to recognize, as expense, the estimated fair value of all share-based payments to employees. Included in the net loss for the three months ended March 31, 2006 is an incremental expense of approximately $515,000 recorded in connection with share-based payment awards. Weighted average shares outstanding for the quarter ended March 31, 2006, were 85.9 million shares compared to 73.4 million shares during the same period in 2005. As of March 31, 2006, there were 86,002,835 shares issued and outstanding.

Net cash used in operating activities for the first quarter ended March 31, 2006, was $11.1 million, compared to $10.2 million in 2005.

For more detailed information, see the attached financial highlights.

Plug Power has scheduled a conference call today at 10:00 AM (EDT) to review its first quarter 2006 results. Interested parties are invited to participate by calling (617) 213-8836 and entering the pass code PLUG (7584) or by logging onto http://www.plugpower.com for a live webcast. Also, a playback of the call will be available on the Company's Web site for a period following the call.

About Plug Power

Plug Power Inc. is an established leader in the deployment of clean, reliable, on-site energy products. More than 650 Plug Power fuel cell systems have been delivered to customers worldwide in commercial, public sector, telecommunications, utility and uninterruptible power supply markets. For more information about how to join Plug Power's energy revolution as an investor, customer, supplier or strategic partner, please visit http://www.plugpower.com.