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Caterpillar and FuelCell Energy finalize Ohio fuel cell contract

Danbury, Conn., Nov. 19, 2003 — FuelCell Energy, Inc. and Caterpillar Inc. have finalized a contract from the City of Westerville Electric Division to supply a 250-kilowatt Direct FuelCell® (DFC®) power plant designed to feed power at a substation into the local electric distribution system in Westerville, Ohio.

The State of Ohio Third Frontier Project award, originally announced by Governor Bob Taft in February 2003, is the first by the state of Ohio, which is investing more than $100 million in a three-year initiative to expand fuel cell research and development, including increased fuel cell generating capacity.

“Through their steadfast support of this project, the state of Ohio is clearly demonstrating that using fuel cells and distributed generation to efficiently produce clean electric power fits in with the long-term environmental and economic needs of the citizens of Ohio,” said Herbert T. Nock, senior vice president of marketing and sales of FuelCell Energy. “It is this type of public and private sector cooperation that is making fuel cell power plants available today to commercial, industrial and utility customers.”

Caterpillar dealer Ohio Cat sold the power plant to the City of Westerville who, in partnership with American Municipal Power-Ohio, is managing the fuel cell generation project. Westerville is a suburb of Columbus, Ohio and serves approximately 14,000 electric consumers through its locally owned and controlled electric system.

As the fuel cell will be directly connected to the Westerville power grid, this installation is one of the nation’s first advanced utility-scale fuel cell power plants designed to feed power from a substation into a local electric distribution system. FuelCell Energy will manufacture the power plant, scheduled for installation in 2004.

“Westerville is extremely excited to be an early adopter of a power supply technology that is certain to become commonplace for the electric consumers of the future,” said Andrew Boatright, Westerville’s Electric Utility Manager. “Fuel cells will play a major role in addressing current and future industry concerns relative to electric reliability, energy security, transmission capacity, the environment, and dependence on foreign oil. We are proud to be leaders in the commercial use of fuel cells.”

In April 2002, Caterpillar and FuelCell Energy signed an alliance agreement to distribute and develop ultra-low emission fuel cell power generation products for industrial and commercial use. The agreement calls for the companies to jointly develop Caterpillar-branded power plants in the 250kW to 3MW size range, incorporating FuelCell Energy’s fuel cell module.

About Direct FuelCells®

Direct FuelCells generate electricity with no combustion. They are, in-effect like large, continuously operating batteries that generate electricity as long as fuel, such as natural gas, is supplied. This high-efficiency technology generates more electric power from less fuel and with less carbon dioxide emissions than traditional methods.

About FuelCell Energy

FuelCell Energy, Inc. (www.fuelcellenergy.com), based in Danbury, Connecticut, is a world-recognized leader for development and commercialization of high efficiency fuel cells for electric power generation. The company’s Direct FuelCell® (DFC®) technology eliminates external fuel processing to extract hydrogen from a hydrocarbon fuel. This results in a product whose cost, combined with high efficiency, simplicity and reliability, results in product advantages for stationary power generation.

The company has been developing DFC technology for stationary power plants with the U.S. Department of Energy through the National Energy Technology Laboratory, whose advanced fuel cell research program is focused on developing a new generation of high performance fuel cells that can generate clean electricity at power stations or in distributed locations near the customer, including hospitals, schools, data centers and other commercial and industrial applications. Its wholly owned subsidiary, Global Thermoelectric Inc., is involved in the development of solid oxide fuel cell (SOFC) products and the world’s largest manufacturer and distributor of thermoelectric stationary power generators for use in remote locations.