Proton Energy Systems, Inc., a subsidiary of Distributed Energy Systems Corp. (DESC) , announced today that it has been selected as a member of the Air Products hydrogen infrastructure project team to participate in the government-funded Hydrogen Research Initiative. This multimillion-dollar program is committed to bringing hydrogen and fuel cell technology to society's forefront. U.S. Secretary of Energy Spencer Abraham made the announcement Tuesday in Detroit, Michigan. 
 
Proton is one of 130 partner companies and lead organizations expected to receive a total of $350 million to establish programs that will further the development of a hydrogen economy and reduce the country's dependence on foreign oil. The DOE has allocated $190 million for projects involving vehicle and infrastructure demonstrations. Proton plans to contribute to these projects with its HOGEN(R) H series hydrogen generators for vehicle fueling. The H series generators produce ultra-pure hydrogen from water and electricity at process pressure, 24/7, at an output capacity ranging up to 240 standard cubic feet per hour. 

"These are exciting times for companies like ours who are developing technologies to enable the hydrogen economy," said Proton's President Walter "Chip" Schroeder. "The promise of fuel cells can be fully realized only when hydrogen is produced from non-polluting and non-depleting renewable power. That is the vision here at Proton and our place in several DOE-funded programs, including fueler demonstrations, will move us several steps closer to realizing our vision." 

The DOE funding amounts have not been determined at this time and companies participating in the projects will match funding. 

The $350 million is nearly one-third of President Bush's $1.2 billion energy research fund undertaking that supports hydrogen and fuel cell-based programs, such as the FreedomCAR and the Hydrogen Research Initiative. 

About Proton Energy Systems, Inc. 

Proton Energy Systems, Inc. designs, develops, and manufactures Proton Exchange Membrane, or PEM, electrochemical products that it employs in hydrogen generating devices and in regenerative fuel cell systems that function as power generating and energy storage devices. Proton's HOGEN(R) hydrogen generators produce hydrogen from electricity and water in a clean and efficient process using its proprietary PEM technology. For more information visit www.protonenergy.com . 

About Distributed Energy Systems Corp. 

Distributed Energy Systems Corp. (DESC) creates and delivers products and solutions to the emerging decentralized energy marketplace, giving users greater control over their energy cost, quality and reliability. As the parent company of Proton Energy Systems ( www.protonenergy.com ) and Northern Power Systems ( www.northernpower.com ), Distributed Energy Systems delivers a combination of practical, ready-today energy solutions and the solid business platforms for capitalizing on the changing energy landscape. For more information visit www.distributed-energy.com . 

This press release contains forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Statements contained herein that are not statements of historical fact may be deemed to be forward-looking information. Without limiting the foregoing, words such as "anticipates", "believes", "could", "estimate", "expect", "intend", "may", "might", "should", "will", and "would" and other forms of these words or similar words are intended to identify forward-looking information. Distributed Energy's actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. Distributed Energy disclaims any obligation to update these forward-looking statements. Factors that could cause results to differ materially from those contained in Distributed Energy's forward-looking statements include, but are not limited to, our failure to complete development of our products, failure of our products to achieve commercial acceptance, our inability to expand our production facilities, manufacture our products at commercially acceptable costs or establish distribution relationships, the impact of competitive products, and other factors detailed in Distributed Energy's Form 10-K for year ended December 31, 2003, and other filings Distributed Energy may make from time to time with the SEC. 

SOURCE Distributed Energy Systems Corp. 

Investor Relations of Distributed Energy Systems Corp.,
+1-203-678-2355; or General, Marilynn Meek, +1-212-445-8451, or Analysts,
Peter Seltzberg, +1-212-445-8457, both of The Financial Relations Board
 

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