Fuel Cell Companies listed in Canada

[Ed Monton]

Palcan Changes Company Name to Palcan Power Systems Inc.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 9, 2004) -
Palcan Fuel Cells Ltd. (TSX-V:PC) today announced that effective
Tuesday, August 10, 2004 the Company's name will become Palcan
Power Systems Inc., subject to formal approval of the TSX Venture
Exchange. This change of name was approved by the Company's
shareholders at the Annual Meeting of Shareholders that was held
on June 8, 2004.

The Company's trading symbol on the TSX Venture Exchange will
remain unchanged as "PC" Its CUSIP number for common shares will
also remain unchanged as 696263102.

"This change in Palcan's name clearly emphasizes the significant
addition to our business of our metal hydride based, hydrogen
storage products," said Palcan's Chairman and CEO John Shen.
"Today we are much more than a fuel cell company. We have an
opportunity to significantly advance the packaged hydrogen
infrastructure that all smaller fuel cell products must rely upon
as well as address market opportunities for bulk storage and
transportation of hydrogen. Our new name encompasses both our
fuel cell products business and the large hydrogen storage
product opportunities that will become Palcan's primary business
focus as we move forward," he added.

Since Palcan issued its Annual Report in May, it has made
significant strides in its objective of becoming a sustainable
commercial business. In the Annual Report, six key goals for the
Company were laid out for completion by the end of the year.
Important progress on all of these goals has been made to date.

One of these goals, the completion of the engineering concept
fuel cell uninterruptible power supply, has been completed. This
device showcases Palcan's expertise in both the fuel cell power
module area as well as the practicality of Palcan's metal hydride
hydrogen storage canisters for this type of application. It was
shown to shareholders at the Company's Annual Meeting as well as
traveling to the 15th World Hydrogen Conference held in Tokyo,
Japan. The Company has also filed its first US patent in the
metal hydride canister area for a new concept of valve that
matches the needs of this product.

We have also significantly strengthened Palcan's Board of
Directors. Dr. Edwin Levy joined the Board at the Annual
Shareholders' Meeting. Dr. Levy is retired from a successful
career at QLT Inc. with experience in regulatory process,
business development and strategic partnering. Mr. David Demers,
CEO of Westport Innovations was appointed to the Board in August.
He has extensive experience in early stage companies as well as
experience and knowledge of hydrogen infrastructure issues and of
doing business in China. Dr. William Saywell, former President of
Simon Fraser University, has also agreed to join our Board,
pending formal appointment. Dr. Saywell played a key role in the
growth and success of Simon Fraser University for almost a decade
and has an in depth knowledge and understanding of China and Asia
which is a geographical focus for Palcan. These additions to the
Board of Directors are all made with the goal of ensuring that we
have the experience and expertise at the Board level to provide
the appropriate guidance, council, and oversight to Management
and the Company as it becomes a commercially oriented business.

We are also in the process of forming a Technical Advisory Group
(TAG) to assist and guide the Company's technical and product
development activities. The TAG will consist of noted technical
experts in the fuel cell and metal hydride areas.

The combination of the strengthened Board of Directors, the
Technical Advisory Group, and an enhanced internal discipline and
focus on commercial opportunities are the foundation to make
Palcan Power Systems Inc. a business success in the years to
come.

About Palcan

The Company is a leading developer and manufacturer of metal
hydride hydrogen storage products and proton exchange membrane
(PEM) fuel cell systems under 5 kilowatts. The Company's
proprietary and patent pending technologies form the core of the
PalPac(TM) Power Products. A unique and integrated fuel cell
power system aimed directly at low output applications where
batteries and smaller internal combustion engines (ICE) are the
power source. These include stationary, marine, military and
portable power applications. The Company's manufacturing,
research and development facilities are located in Burnaby,
British Columbia and Jiaxing, China. The Company trades on the
TSX Venture Exchange under the symbol "PC".

Certain matters discussed in this press release may contain
forward-looking statements that may involve risk and
uncertainties. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, including but not
limited to; product development delays, the ability to attract
and retain business partners, competition from other fuel cell
manufacturers, competition from existing power technologies, and
the ability to provide the capital required for product
development, operations and marketing. Investors are encouraged
to review the Company's filings on SEDAR at www.sedar.com
including Corporate Financials and Annual Information Form (AIF).


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FOR FURTHER INFORMATION PLEASE CONTACT:
Palcan Fuel Cells Ltd.
Daniel Gallagher
Corporate Communications
[phone] or Toll Free: 1-866-548-8868
Email: [e-mail]
Website: www.palcan.com
The TSX Venture Exchange has neither reviewed nor approved of the
contents of this news release.