This agreement forms the first contract under a €2.5 million purchase and procurement agreement with L-3 Communications entered into in March 2006. Under the terms of that agreement, PPS' subsidiary Proton Motor Fuel Cell GmbH (PM) is developing a fuel cell system, to be commissioned in a series of orders over the course of the next three years. This first fuel cell system is expected to be used in L-3 Communication's technology test center.

Additionally, L-3 Communications has placed a $45,200 service and engineering order with PM, comprising additional documentation and hardware and training, effective immediately.

Felix Heidelberg, PPS' Chief Executive Officer, said: "We are delighted to have the received the first order under this significant contract. We have a cost effective modular solution which provides an effective and economic way to combat climate change, and we look forward to working with L-3 Communications."

Separately, PM also announced that it had been informed by its customer Tecnobus SpA (Tecnobus), that for reasons internal to the company, Tecnobus is unable to continue work on its project involving using fuel cell systems on battery buses in Italy. However Tecnobus has confirmed that it wishes to keep open its existing strategic collaboration with PM.

As a result, PM has agreed to repurchase for a consideration of €40,000 the unused as good as new fuel cell systems purchased by TecnoBus for €90,000.