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FuelCell Energy Sells Direct FuelCell(R) Power Plant

FuelCell Energy, Inc. a manufacturer of stationary fuel cell power plants for distributed generation, has signed an agreement with Arizona-based Salt River Project (SRP) to provide and service a 250-kilowatt Direct FuelCell(R) (DFC(R)) power plant.

The DFC300A power plant will be owned and operated by SRP and will be located at the Arizona State University East Campus in Mesa, Ariz.

The unit will feed the electricity output into SRP's local grid. Delivery is expected in late 2004 or early 2005.

"This new order is consistent with our goal of developing sustainable markets for our DFC products," said Herbert T. Nock, Senior Vice President of Marketing and Sales of FuelCell Energy, Inc. "Municipal utilities have been early adopters of environmentally friendly and efficient technologies, investing in projects that deliver broader benefits in addition to electricity. We are very pleased to be working with SRP to gain additional experience for our DFC products in utility applications."

This installation is the fifth DFC power plant installation by FuelCell Energy for a municipal utility customer.

The Los Angeles Department of Water and Power currently operates three DFC300A power plants within its city limits and the Company is expected to deliver a 250-kilowatt unit to American Municipal Power, Ohio for a substation in the city of Westerville, Ohio in the first calendar quarter of 2004.

"This fuel cell power plant installation will be our first generating unit that produces clean, efficient and reliable base load electricity without the combustion of fuel," said Herjinder Hawkins, Manager of Renewable Energy and Technologies, SRP. "We are excited to be working with FuelCell Energy as we continue to establish energy programs that help protect the environment and provide reassurance for today's families and future generations."

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