Proton Power Systems Annouces New Share Placement and Appointment of Ali Naini as Non-Exec Director

On 30 April 2008 Proton Power announced its intention to raise up to £3.0 million (before expenses) pursuant to a placing of up to 30,000,000 new ordinary shares of 5 pence each in the Company (the "Placing Shares") at a price of 10 pence per share (the "Placing").

The Board of Proton is today pleased to announce that the Company has entered into subscription agreements with investors for the full subscription of a total of 30,000,000 Placing Shares resulting in the gross proceeds from the Placing being £3.0 million.

The Placing remains conditional on: (i) the passing of the resolutions at the extraordinary meeting convened for 27 May 2008; and (ii) admission of the Placing Shares to trading on AIM taking place on or before 13 June 2008.

It is intended that one of the placees in the Placing will, under the terms of their subscription agreement, in due course appoint two new non-executive directors to the Board of Proton. Such appointments are a condition of this placee's subscription in the Placing.

In addition, in recognition of his role in facilitating the Placing, the Board of Proton has agreed to appoint Ali Naini, Managing Director of Turquoise International Limited, as a non-executive director of Proton as soon as practicable following completion of the Placing.

Any new board appointments will be subject to, inter alia, satisfactory completion of background checks pursuant to the AIM Rules. Further announcements in accordance with Schedule 2 (g) of the AIM Rules will be made as appropriate on new board appointments.

The Board also intend to propose a resolution at the Company's next annual general meeting (which is expected to be held at the end of July 2008) to change the Company's articles of association to allow shareholders holding over a certain amount of the Company's share capital (such level to be determined by the Board) the automatic right to appoint a representative to the Board. Further details will be contained in the notice of annual general meeting to be posted to shareholders on or around 30 June 2008.

The Board believes that the proposed Board appointments and the resolution to be proposed at the Company's next annual general meeting are, in light of its future funding requirements, in the best interests of the Company and its shareholders.

Source: Fuel Cell Today