Alternative Energy

[Copperfield]

FuelCell Energy and Alliance Power announce agreement to distribute Direct FuelCell® power plants
Danbury, Conn. and Littleton, Colo., June 2, 2003 -- FuelCell Energy, Inc. has signed an agreement with Alliance Power, Inc. to integrate FuelCell Energy's ultra-low emission Direct FuelCell® (DFC®) power plants into Alliance Power's portfolio of distributed generation solutions.

Alliance Power is a developer of distributed generation facilities ranging in size from 1 megawatt to 49 megawatts. Alliance Power will focus its marketing efforts initially in the state of California, seeking to take advantage of high-electric rates, a favorable regulatory environment for fuel cell power plants and currently available state incentives.

"Alliance Power has a proven track record of developing, financing, constructing and operating multi-megawatt distributed generation projects for municipal, industrial and commercial customers," said Herbert T. Nock, senior vice president of marketing and sales of FuelCell Energy, Inc. "Alliance Power is well positioned to integrate our megawatt class DFC products into environmentally sound energy solutions."

"Fuel cell technology is clearly the future for power generation and FuelCell Energy's DFC power plants will enhance our product offerings," said James I. Michael, President of Alliance Power. "In areas with significant environmental issues and with state incentives that support fuel cell technologies, we can offer energy solutions based on FuelCell Energy's products that can be competitive with electricity being purchased from the grid."

Alliance Power designed, permitted and constructed three distributed generation power plants in California - the 42-megawatt Century Generation Project in Colton, the 42-megawatt Drews Generation Project in Colton, and the 40-megawatt Springs Generation Project in Riverside. All three projects are substation applications that supported the expansion and reliability of municipal grid systems.

About Direct FuelCells

Direct FuelCells efficiently generate clean electricity at distributed locations near the customer, including hospitals, schools, universities, hotels and other commercial and industrial facilities, as well as in grid support applications for utility customers. In essence, Direct FuelCells are like large, continuously operating batteries that generate electricity as long as fuel, such as natural gas, is supplied. Since the fuel is not burned, there is no pollution commonly associated with the combustion of fossil fuels. Because hydrogen is generated directly within the fuel cell module from readily available fuels such as natural gas and wastewater treatment gas, DFC power plants 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 methods using combustion. Operating on biomass fuels, such as wastewater treatment digester gas, Direct FuelCells are a renewable technology.

About FuelCell Energy, Inc.

FuelCell Energy, Inc., based in Danbury, Connecticut, is a specialist in the development and manufacture of highly efficient hydrogen fuel cells for clean electric power generation, currently offering DFC power plant products ranging in size from 250 kilowatts to 2 megawatts for applications up to 50 megawatts.

The company has developed commercial distribution alliances for its carbonate Direct FuelCell technology with MTU CFC Solutions Gmbh, a company of DaimlerChrysler AG, in Europe; Marubeni Corporation in Asia; and Caterpillar, PPL Energy Plus and Chevron Energy Solutions, in the U.S. FuelCell Energy is developing Direct FuelCell technology for stationary power plants with the U.S. Department of Energy through their Office of Fossil Energy's National Energy Technology Laboratory. More information is available at http://www.fuelcellenergy.com.

About Alliance Power, Inc.

Alliance Power, Inc. has developed economical and environmentally acceptable distributed generation (DG) facilities ranging in size from 1 MW to 49 MW. The company's unique approach to DG projects maximizes the use of existing utility infrastructure to reduce costs. Alliance Power performs all aspects of project implementation including siting, planning, permitting, designing, constructing, financing, and operating. The company has a proven team has the experience and technology to deliver DG power supplies on schedule -- with economical and competitive rates. Alliance Power has a staff experienced in providing power generation development in a variety of settings and for a wide array of clients. Alliance Power's headquarters are located in Littleton, Colorado with regional offices across the U.S. More information is available at http://www.alliancepower.com.