Regulatory News

ITM Power PLC
13 November 2006


Monday 13 November 2006

                                 ITM Power Plc
                            ("ITM or "the Company")

                                   Agreement

ITM Power announces today that it has signed a Memorandum of Understanding
("MoU" or/and the "Agreement") with Hydrogen Engine Center Inc ("HEC"), an
American company that designs, manufacturers and distributes alternative fuel
internal combustion engines for the industrial and power generation markets.
The joint objective is to develop products for a non polluting grid independent
energy system which can undergo early field trial testing.

The purpose of the MoU is to provide a platform from which the two organisations
can develop their respective technologies such that they can enjoy mutual
benefits. HEC anticipates that ITM can offer an assured supply of hydrogen using
ITM's low cost electrolyser technology. ITM anticipates that HEC provides an
early route to the provision of a complete system package using HEC's proven
engine technology.

The combination of a low cost electrolyser and a hydrogen fuelled internal
combustion engine could provide the essential technology to convert low-value
intermittent renewable energy (wind, solar) into a reliable non-fossil energy
supply.

Subject to the production of satisfactory results from the field trials, ITM and
HEC will progress into detailed discussions with the intention of entering a
more formal commercial exploitation arrangement.

Jim Heathcote, CEO, ITM Power Plc, said: "We are delighted to be working with
the team at HEC. I believe that the collaboration of HEC and ITM brings together
complimentary technologies that could provide significant commercial
opportunities for both companies in the North American and European markets."

Ted Hollinger, President, HEC, said: "Both ITM and HEC have been developing
technologies over the past few years and are now ready to bring them to market.
By combining ITM's new low-cost electrolyser with HEC's hydrogen engines,
customers will have access to turn-key hydrogen-fueled systems."

-Ends-

For further information, please contact:

Gemma Chandler
Corporate Communications Officer
ITM Power Plc
Tel: +44 (0) 1799 532 860
Mob: +44 (0) 7921 057712

HEC media contact:
Maggie Nye (maggie@vendely.com)
Elizabeth Vendely (elizabeth@vendely.com)
Vendely Communications Inc
Tel: 001 818 623 1000


Notes to Editors:

About ITM Power Plc:
ITM Power plc believes it has developed and patented the keys to revolutionise
the hydrogen economy and is set to become one of the UK's leading innovators
within the alternative energy sources industry. www.itm-power.com

Electrolyser:
An electrolyser converts water and electricity into hydrogen and oxygen. These
gases can be used as fuel for combustion engines, fuel cells, heating and
conventional electricity generation.

Existing electrolysers cost in the region of $2,000/ kW and the US Department of
Energy 2010 target is $300/kW for an electrolyser stack.

ITM Power has identified low cost electrolysers as a vital component to replace
hydrocarbon fuels with hydrogen. ITM its unique patented technology has allowed
ITM to achieve cost/performance targets which in production would equate to
electrolyser stack costs as low as $164 / per kW.

About Hydrogen Engine Center Inc:
Hydrogen Engine Center, Inc., designs, manufactures and distributes
alternative-fueled internal combustion engines and power generation equipment
for distributed power, agricultural, industrial, airport ground support,
vehicular, business and home applications. All HEC engines and Gensets are
capable of running on a multitude of fuels, including but not limited to,
hydrogen, gasoline, propane, natural gas and ethanol. Development of an
ammonia-fueled engine is underway. HEC trades on the Bulletin Board under the
symbol "HYEG.OB." Principal offices are located at 2502 E Poplar St., Algona,
Iowa 50511. Visit www.hydrogenenginecenter.com or call 1-515-295-3178.





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