EXHIBIT 99.1
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[PLUG POWER INC LOGO]
NEWS RELEASE
FOR IMMEDIATE RELEASE Contacts:
June 27, 2001 Steve Zenker
Director of Investor Relations
(518) 782-7700 ext 1248
Mark Sperry
VP & Chief Marketing Officer
(518) 782-7700 ext 1455
PLUG POWER ANNOUNCES MOUS, ADDITIONAL INVESTMENTS
Latham, N.Y. - Plug Power, Inc. (NASDAQ: PLUG), announced today that it has
entered into a non-binding Memorandum of Understanding (MOU) with GE Fuel Cell
Systems, L.L.C. (GEFCS), GE MicroGen, Inc. (GEMG), and GEPS Equities Inc., and a
separate non-binding MOU with DTE Energy Technologies, Inc., a subsidiary of DTE
Energy (NYSE: DTE). These MOUs define new, expanded distribution agreements for
Plug Power's Proton Exchange Membrane (PEM) fuel cell systems for stationary
power applications and confirm new cash equity investments in Plug Power. The
changes proposed in the MOUs are subject to negotiation and completion of
definitive agreements to our current distribution agreements with GEFCS and DTE
Energy Technologies, Inc.
The MOU between Plug Power and certain GE entities includes provisions to:
. Expand GEFCS's exclusive, global (outside of a 4-state territory served by
DTE Energy Technologies, Inc.) distribution rights to include PEM fuel
cell-powered generators manufactured by Plug Power, of any electric power
output, including greater than 35 kW, for use in any stationary power
applications, including uninterruptible power supply and telecommunications
applications.
. Increase Plug Power's ownership in GEFCS to 40 percent, from 25 percent
currently. GE MicroGen's ownership interest in GEFCS will be reduced from
75 percent to 60 percent.
. Grant GEPS Equities $5 million of shares in Plug Power common stock. In
addition, GEPS Equities has made a binding commitment to purchase, for $5
million in cash, additional shares of Plug Power common stock, at a price
equal to the offering price in Plug Power's public offering of common
stock, currently in registration. GEPS Equities currently owns 5.25 million
shares in Plug Power, which represents an 11.8 percent ownership stake.
A separate, but parallel, MOU between Plug Power and DTE Energy Technologies was
executed expanding DTE Energy Technologies' exclusive distribution rights to
include
Plug Power-manufactured PEM fuel cell-powered generators of any size
output for use in any power application, except for propulsion, within the
states of Michigan, Illinois, Ohio and Indiana.
Separately, Edison Development Corporation, another DTE Energy subsidiary, has
agreed to purchase, for $5 million in cash, additional shares of Plug Power
common stock at a price equal to the offering price in Plug Power's public
offering of common stock, currently in registration.
"We are very pleased with the strengthening of the relationships with our
distribution partners, GEFCS and DTE Energy Technologies," said Roger Saillant,
CEO of Plug Power. "We believe that the broad nature of these MOUs provides the
framework required to deliver the strategy as outlined to our Board of Directors
and shareholders back in April."
"GEFCS is pleased to have reached this level of agreement on the range of issues
covered by the MOU," said Barry Glickman, President of GEFCS. "GEFCS looks
forward to working with Plug Power to evaluate the customer requirements for the
additional product sizes and applications contemplated by the MOU."
"DTE Energy believes that Plug Power fuel cells greater than 35 kW will be a
significant factor in helping energy companies like DTE Energy meet growth and
reliability requirements at a lower cost than alternatives" said Anthony F.
Earley Jr., Chairman and Chief Executive Officer of DTE Energy.
Plug Power designs and develops on-site electric power generation systems
utilizing proton exchange membrane fuel cells for stationary applications. The
Latham, N.Y.-based company was founded in 1997, as a joint venture of DTE Energy
Company and Mechanical Technology Incorporated. Plug Power Holland was founded
in February 2000 as the first European operation base of Plug Power.
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This press release may contain statements which are not historical facts and are
considered forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include
statements regarding Plug Power's future product development and delivery
expectations, the impact of expanded distribution rights contemplated by the
MOUs, future results of operations or of Plug Power's financial position or
state other forward-looking information. In some cases you can identify these
statements by forward-looking words such as "anticipate," "believe," "could,"
"estimate," "expect," "intend," "may," "should," "will" and "would" or similar
words. You should not rely on forward-looking statements because Plug Power's
actual results may differ materially from those indicated by these forward-
looking statements as a result of a number of important factors. These factors
include, but are not limited to, Plug Power's ability to develop a commercially
viable fuel cell system; the cost and timing of developing Plug Power's fuel
cell systems; market acceptance of Plug Power's fuel cell systems; Plug Power's
reliance on Plug Power's
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relationship with General Electric; competitive factors, such as price
competition, competition from other power technologies and competition from
other fuel cell companies; the cost and availability of components and parts for
Plug Power's fuel cell systems; the ability to raise and provide the necessary
capital to develop, manufacture and market Plug Power's fuel cell systems; the
cost of complying with current and future governmental regulations; and other
risks and uncertainties discussed under the heading "Risk Factors" in Plug
Power's current Report on Form 8-K filed with the Securities and Exchange
Commission on June 14, 2001 and the reports Plug Power files from time to time
with the Securities and Exchange Commission. Plug Power undertakes no duty to
update the information contained its forward-looking statements or the other
information in this press release.
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