HydroGen Corporation Reports Results FQ1 FY2008

HydroGen Corporation today announced its financial results for the quarter ended March 31, 2008. HydroGen Corporation is currently in the development stage and is expected to remain so for at least the next several quarters.

Recent Corporate and Operational Highlights

  *  Start-up of Commercial Demonstration Power Plant.  HydroGen
     Corporation successfully started up its first full-scale
     commercial demonstration fuel cell power plant at ASHTA
     Chemicals, Inc.'s chlor-alkali facility.  The start up of
     the PAFC plant, which uses by-product hydrogen to generate
     electrical power, positions the Company for near term
     commercial deployment of its multi-megawatt PAFC plants
     for the chemical industry.  In the testing completed since
     initial startup, the plant has demonstrated expected
     performance during various start-up, operational, and
     shut-down modes and power levels.

  *  Start-up of Coke Oven Gas Treatment Plant. HydroGen and its
     project partners have successfully started up a pilot coke
     oven gas (COG) treatment plant to process COG into hydrogen
     of sufficient purity to support PAFC power plant requirements.
     The pilot demonstration plant, which supports penetration
     efforts into this target market segment, is located at a
     potential customer's operating coke oven works. The pilot
     plant is currently in the middle of a multi-week reliability
     test run, and is processing gas directly from the potential
     customer's coke oven operations. Preliminary results indicate
     that the plant is effectively removing contaminants and is
     producing a hydrogen fuel stream meeting HydroGen's PAFC plant
     requirements.

  *  Progress on Multi-Megawatt PAFC Plant Design for First
     Commercial Sale.  The Company is working with an architect
     engineering firm to complete engineering and design efforts
     to support the Company's first planned sale of a multi-megawatt
     plant to Samsung Corporation. The design package, which
     includes process flow diagrams (including process simulations),
     process and instrumentation drawings, equipment specifications
     and data sheets, a preliminary hazardous operations study,
     and development of cost reduction strategies, is on schedule.

  *  Next Generation PAFC Product Development Team Established. An
     internal cross functional team has been established with the
     charter to identify next generation fuel cell module and
     balance of plant cost and power density improvements. Initial
     design and sourcing strategies have identified an achievable
     reduction of 50% in module costs.  Similar work that targets
     balance of plant improvements is underway.

  *  Development of Low Cost-High Volume Manufacturing. Progress
     has been made in the development of lower cost, high volume
     manufacturing approaches which will be implemented in
     HydroGen's advanced manufacturing plant that is scheduled
     to come on line in late 2009.  A prototype of an automated
     stack assembly line has been developed and successfully tested.
     This equipment routes all completed stack components, including
     plates and electrodes, and performs all cell and stack assembly
     operations automatically. Additionally, the Company has placed
     under test electrode materials manufactured utilising a
     newly-developed high volume catalyst deposition process,
     using conventional, low capital cost equipment. In addition
     to cost reductions, HydroGen expects improvement in quality
     and repeatability of these manufacturing operations.

  *  Advanced Electrode Development. Development of advanced
     electrode materials has progressed during the quarter. HydroGen
     has accumulated over 20,000 cumulative hours of small scale
     evaluation testing of first and second generation nano-catalyst
     materials, including the lead cell which has operated for
     nearly 4,000 hours.  Advanced electrodes based on nano-materials
     are expected to play an important role in cost reductions and
     lifetime performance improvements in HydroGen's longer range
     design and manufacturing plans.

2008 First Quarter Results

For the quarter ended March 31, 2008, HydroGen's net loss was $5.2
million, or $(0.41) per basic and diluted share, based on the weighted
average of 12,769,904 common shares outstanding. This compares with a net loss of $3.1 million, or $(0.25) per basic and diluted share for
the quarter ended March 31, 2007, based on the weighted average of
12,769,904 common shares outstanding.

The net loss for the quarter was due primarily to an increase in
research and development expenses which amounted to $3.6 million in the first quarter 2008 compared to $2.3 million in the first quarter 2007.
The increase in research and development expenses was due to the
acceleration of the Company's efforts related to its commercial
demonstration of its air-cooled phosphoric acid fuel cell module
technology, as well as the ramp-up of manufacturing activities.

HydroGen's balance of cash, cash equivalents and short-term investments at March 31, 2008, totaled $2.6 million, as compared to a balance totaling $8.1 million at December 31, 2007. Spending on research and development for fiscal 2008 first quarter amounted to $3.6 million, increasing more than 55% over the first quarter of 2007. As of May 13, 2008, HydroGen had approximately $1 million in cash and will require additional capital to continue operations past May 30, 2008. The
Company is in active discussions with our investment bankers and
investors and is pursuing a private placement for financing. While the
Company cannot assure that we will be able to conclude a financing,
management is focused on concluding this financing in the timeframe
necessary to continue operations.

"In the first quarter of this year we built on the progress made in
2007. We believe we have in place a strong foundation for further
strategic, operational and technological development," said John Freeh
Chief Executive Officer of HydroGen Corporation. "I am pleased with the
startup and performance of the ASHTA plant thus far. This demonstration is one of HydroGen's most important achievements and, in conjunction with our strategic partnership with Samsung Corporation, positions us to become a global player in the growing distributed generation market for electricity and in the movement towards clean, hydrogen- and natural gas-based power generation."

Source: Fuel Cell Today