FuelCell Energy, Marubeni and Kawasaki to Build and Market Direct FuelCell Power Plants in Japan DANBURY, Conn., Aug. 31 /PRNewswire-FirstCall/ -- FuelCell Energy, Inc. (NASDAQ:FCEL) and its partner in Japan, Marubeni Corp. (TSE:8002), will enter into an agreement with Kawasaki Heavy Industries (TSE:7012TSE:ADRsTSE:OTC: KWHIY) to become a packager of Direct FuelCell(R) (DFC(R)) power plants in Japan. Discussions for conclusion of the agreement are in the final stage. As part of this agreement, Kawasaki will purchase a DFC300A power plant from Marubeni, to be installed at the Kawasaki Akashi Works near Osaka, Japan, where it will undergo long-term evaluation and testing. Under the agreement, Kawasaki will act as Marubeni's packaging partner for Japan, to design and manufacture balance of plant components, sourced from Japanese manufacturers, to meet the requirements for the Japanese market. A special focus will be reducing the cost of the balance of plant systems for the DFC power plants. Kawasaki has long maintained a leadership position in the field of stationary power generation, and is a leading supplier of ultra- clean gas turbines in Japan and internationally. Kawasaki sees the greatest opportunity for DFC power plants in high efficiency, cogeneration applications for large commercial and light industrial sectors, particularly due to reduced greenhouse gas emissions. The agreement also calls for Kawasaki to be a sub-distributor to Marubeni in Japan, with plans to market the DFC products directly to Kawasaki's end customers. In such cases, Kawasaki will provide technical support services through its nationwide dealer network. "FuelCell Energy views this packaging and sub-distribution agreement with Kawasaki as central to its long term strategy for establishing sustainable markets for its DFC products in Japan," said Herb Nock, FuelCell Energy's Senior Vice President of Marketing and Sales. "Japan is a vital market for our products, and we are confident that this alliance will lead to high performance, high quality products well suited to Japanese customers." "Marubeni believes that local design and manufacture of the BOP package makes good economic sense for our customers," states Takeo Nakata, General Mgr. of Marubeni's New Energies Team. "Kawasaki is a world-class manufacturer of power generation equipment, and together with Marubeni, will make a strong partnership in order to reduce overall costs for DFC power plants designed specifically for the Japanese market." FuelCell Energy expects that KHI will be delivering DFC products to the Japanese market in the 2005/2006 timeframe. About Direct FuelCells Direct FuelCells efficiently generate clean electricity at distributed customer locations, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as in grid-support applications for utility customers. Direct FuelCells operate similar to large, continuously operating batteries except they utilize a fuel to generate electricity, such as natural gas or digester gas from wastewater treatment facilities. DFC power plants are hydrogen generators, and because of this are ready today and do not require the creation of a hydrogen infrastructure. This high-efficiency technology generates more electric power from less fuel and with less carbon dioxide emissions than traditional combustion methods. The sub-megawatt fuel cell power plant is a collaborative effort using Direct FuelCell(R) technology of FuelCell Energy and the Hot Module(R) balance of plant design of MTU CFC Solutions, GmbH, a subsidiary of DaimlerChrysler. About Kawasaki Heavy Industries Founded in 1878, Kawasaki Heavy Industries, Ltd. (KHI) is a leading global comprehensive manufacturer of transportation equipment and industrial goods. With a broad technological base that encompasses mastery of the land, sea, and air, the KHI Group manufactures ships, rolling stock, aircraft and jet engines, gas turbine power generators, refuse incinerators, industrial plants, steel structures, and a wide range of manufacturing equipment and systems. KHI also produces such world-famous consumer products as Kawasaki-brand motorcycles. More information is available at http://www.khi.co.jp/index_e.html. About Marubeni The Marubeni Corporation (http://www.marubeni.co.jp/english/index.html), established in 1858, is one of Japan's leading general trading/marketing houses (sogo shosha). The Company was ranked as the 25th largest in Fortune Magazine's Global Fortune 500 list for 2002. Marubeni has 12 Divisions with operations that encompass domestic, import/export, offshore trade and investment activities, which range from the development of natural resources to the retail marketing of finished products. The Company, based in Tokyo, conducts these operations through a worldwide business network that includes 52 overseas corporate offices and 28 overseas subsidiaries, for a total of 131 offices in 73 countries. Marubeni's Utility & Infrastructure Division has been involved in the development of over 20,000 megawatts of power generation worldwide. The Division has expanded its efforts to include distributed generation technologies, power quality & reliability technologies and energy & environmental services. About FuelCell Energy, Inc. FuelCell Energy, Inc., based in Danbury, Connecticut, is a world leader in the development and manufacture of high temperature hydrogen fuel cells for clean electric power generation. The Company has developed commercial distribution alliances for its carbonate Direct FuelCell products with MTU CFC Solutions in Europe; Marubeni Corporation in Asia; Enbridge Inc. in Canada; Caterpillar, PPL Energy Plus, Chevron Energy Solutions and Alliance Power in the U.S. FuelCell Energy developed its patented Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through its Office of Fossil Energy's National Energy Technology Laboratory. FuelCell Energy is also developing next generation high temperature fuel cell products, such as a diesel fueled marine Ship Service Fuel Cell, a combined-cycle DFC/Turbine(R) power plant and solid oxide fuel cells for applications up to 100 kilowatts. More information is available at http://www.fuelcellenergy.com/. This news release contains forward-looking statements, including statements regarding the Company's plans and expectations regarding the development and commercialization of its fuel cell technology. All forward- looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that could cause such a difference include, without limitation, the risk that commercial field trials of the Company's products will not occur when anticipated, general risks associated with product development, manufacturing, changes in the utility regulatory environment, potential volatility of energy prices, rapid technological change, and competition, as well as other risks set forth in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statement to reflect any change in the Company's expectations or any change in events, conditions or circumstances on which any such statement is based. Web site: http://www.fuelcellenergy.com http://www.khi.co.jp/index_e.html http://www.marubeni.co.jp/english/index.html DATASOURCE: FuelCell Energy, Inc. CONTACT: Investor-Media: Steven P. Eschbach, CFA of FuelCell Energy, Inc., +1-203-825-6000, or

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