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U.S. Missile Defense Agency Awards $1.25 Million Contract to Proton Energy Systems for Regenerative Fuel Cell Research

Posted on: Wednesday, 11 October 2006, 18:01 CDT

WALLINGFORD, Conn., Oct. 11 /PRNewswire-FirstCall/ -- Proton Energy Systems, a leader in hydrogen generation and fuel cell technology and products, and a subsidiary of Wallingford, CT-based Distributed Energy Systems Corp. , announced today that it has been awarded a $1.25 million follow-on contract from the U.S. Missile Defense Agency (MDA). The Small Business Innovative Research (SBIR) Phase III contract calls for continued development of regenerative fuel cell technology for high altitude airships.

The research project is part of a Department of Defense initiative to develop a lighter-than-air, high-altitude airship Advanced Concept Technology Demonstration (ACTD) prototype. According to the Missile Defense Agency, this ACTD plans to demonstrate the engineering feasibility and potential utility of an unmanned, untethered, gas-filled, solar-powered airship that can fly at 70,000 ft.

Research will proceed during a one-year period designed to test the efficiency and performance of Proton's hydrogen-generating "core stack." In addition, its proton exchange membrane (PEM) stack technology will be monitored closely as it is scaled up to the size required for high-altitude airship deployment.

"By working with the MDA on the high-altitude airship application, Proton will be better able to advance its expertise in regenerative fuel cell technology for this and many other government and commercial applications," said Rob Friedland, senior vice president and head of the Hydrogen Technology Group. "In addition, all of us at Proton are grateful to Senators Chris Dodd and Joe Lieberman for their strong support of this important technology program."

The proton exchange membrane electrolysis technology developed by Proton produces energy by converting water into hydrogen and oxygen to power the airship. This PEM reaction happens in a controlled environment, enabling Proton's regenerative fuel cell system to provide the airship with its necessary power. This same technology is also used to provide back-up power in the telecom industry, as well as for serving huge commercial markets for hydrogen, including cooling power plant generators.

Approved for public release, 06-MDA-1860 (5-Sept-06)

Proton Energy's Hydrogen Technology Group (HTG) is part of Distributed Energy Systems Corp. . The Military and Aerospace Team within HTG designs, develops, models, and builds technology solutions based on Proton's core PEM technology. They meet the technical needs of a diverse customer base that includes commercial aerospace partners, and civilian and military government agencies. Please contact the Military and Aerospace Team at 203.678.2351 and online at http://www.protonenergy.com/company/hyd-tech.html to learn more.

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 http://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, including statements concerning accretion to operating results and growth in market share, 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. Northern Power's and Distributed Energy's actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors. Northern Power and Distributed Energy each disclaim any obligation to update these forward- looking statements. Factors that could cause results to differ materially from those contained in Northern's and Distributed Energy's forward-looking statements include, but are not limited to, failure of our products and systems to perform as specified or achieve commercial acceptance, the impact of competitive products and systems, and other factors detailed in Distributed Energy's Form 10-Q for the quarter ended June 30, 2006, and other filings Distributed Energy may make from time to time with the SEC.

Distributed Energy Systems Corp.

CONTACT: Amy Klinger, Northern Power, +1-802-496-2955 x7289,aklinger@northernpower.com

Web site: http://www.distributed-energy.com/

Source: PRNewswire-FirstCall

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