FuelCell energy reports first quarter 2004 results

9 March 2004 -FuelCell Energy, Inc. reported a net loss for the first quarter of fiscal 2004 of $27.9m or $0.59 per basic and diluted share, which includes a one time charge of $12.2m or $0.26 per basic and diluted share related to purchased in-process research and development from its acquisition of Global Thermoelectric Inc.

The adjusted net loss per share without this acquisition-related charge would have been $0.33 per basic and diluted share.

FuelCell Energy acquired Global to enhance its solid oxide fuel cell (SOFC) technology base and strengthen its capabilities under the ten year, $139m Solid State Energy Conversion Alliance (SECA) project award from the US Department of Energy.

The Company acquired all of the outstanding common stock of Global by issuing 8.2m common and exchangeable shares of FuelCell Energy. In addition to intellectual property, the Company added highly skilled SOFC technology personnel, physical assets including pilot testing and production facilities, a profitable thermoelectric generator product line with a strong management team, and $55.8m in cash.

Global’s financial results have been reported in FuelCell Energy’s financial reporting beginning on November 3, 2003. FuelCell Energy’s financial data prior to the acquisition has not been restated to include Global’s financial data. The acquisition has been recorded under the purchase method of accounting.