The new research grant will allow Proton to focus on critical technology improvements such as increased system and cell stack efficiency, reduced costs through scale-up and manufacturability assessments, and improving the technology to directly interface renewable electricity sources to the PEM electrolyzer. Proton is a leader in on-site hydrogen generation systems and other advanced energy storage technologies.

Speaking on behalf of the UNLVRF, Bud Pittinger, its executive director, said: "This research is essential in advancing the use of hydrogen and reducing this nation's dependence on foreign sources of energy. By improving efficiency and costs, hydrogen will become widely accepted and utilized. We are grateful for Senator Harry Reid's support in furthering hydrogen research and development."

UNLV's vice president for graduate studies and research, Dr. Mark Rudin, said: "UNLV is pleased to have such a prestigious hydrogen research and development firm as a partner on this project. Our researchers, faculty and students will have access to highly skilled experts in electrolyzer technology."

"We believe this latest award will result in further significant advancements in our PEM electrolysis technology, allowing us to focus our research and development on key operational product capabilities," said Robert Friedland, Proton's senior vice president and head of the hydrogen technology group. "This welcome extension of our relationship with the talented and innovative team at UNLV enables our company to continue to play a role in finding innovative solutions to the nation's energy problems, and it will also showcase what we believe are the distinctive benefits of our proprietary technologies."

About UNLVRF

The University of Nevada Las Vegas Research Foundation, a non-profit affiliate of the University of Nevada Las Vegas, was established in 2001 to facilitate commercialization of products and services resulting from UNLV faculty research, promote the scope of its research programs, and establish and implement strategies to stimulate economic growth and regional diversification originating from its research. The Foundation partners with UNLV research staff and a variety of organizations and businesses in an effort to bring the educational community together with the business community to explore opportunities in technology, research and development.

About UNLV Center for Energy Research

The University of Nevada, Las Vegas' Center for Energy Research is a focus area for research, information exchange, and education in energy topics. Issues of particular interest to our geographical region include more general topics such as: solar energy utilization schemes, arid regions energy systems (e.g. dry cooling considerations), advanced cooling concepts (e.g. refrigeration systems that do not use CFCs), and nuclear waste issues are of particular importance. On a broader application basis, conventional power generation systems, energy conservation devices and systems, and environmental control issues for energy systems are of interest. The Center serves as a generator and catalyst for ideas, a stimulus for interdisciplinary cooperation, and a facilitator for commercialization.

About Proton

Proton Energy Systems, Inc., a subsidiary of Distributed Energy Systems Corp. (Nasdaq: DESC), 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® hydrogen generators produce hydrogen from electricity and water in a clean and efficient process using its proprietary PEM technology. Markets served by this technology include industry, fueling systems, backup power systems, military and aerospace as well as linking hydrogen to renewable energy technologies.

About Distributed Energy Systems Corp.

Distributed Energy Systems Corp. 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, Inc. (http://www.protonenergy.com) and Northern Power Systems, Inc., 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.