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FOR IMMEDIATE RELEASE

PROTON ENERGY SYSTEMS TO SHOWCASE HOGEN H SERIES HYDROGEN GENERATOR AT POWER-GEN EUROPE MAY 25-27 IN BARCELONA

WALLINGFORD, CT, May 11, 2004 --/WORLD-WIRE/-- Energy professionals who attend POWER-GEN Europe May 25-27 will get a closer look at a new hydrogen production system that power plants in Michigan and Arizona have installed to reliably, safely and efficiently cool their plant's electric generators, lower their operating costs and reduce or eliminate hydrogen inventory.

Proton Energy Systems (Booth D-48 at the Montjuïc 2 Exhibition Center, Fira de Barcelona) will showcase their new HOGEN® H Series onsite hydrogen generator, which offers flexibility and savings to power producers using hydrogen as a generator coolant.

Two GE 7FA gas turbine-based power plants have recently installed H Series generators for onsite hydrogen supply in their power generation facilities. Mirant Corp.'s power plant in Zeeland, Michigan and TECO Energy's Gila Bend, Arizona plant are using H Series generators as trial installations.

Mirant-Zeeland Plant Operations and Maintenance Manager Brian Roth said, "The HOGEN H Series hydrogen generator is benefiting our facility's quality of operations by eliminating the need for our personnel to change hydrogen bottles in bad weather. Proton has provided excellent support during the installation and service of our H Series generator."

"H Series hydrogen generators offer 60-90 percent savings on power plant's hydrogen operating costs compared to deliveries of cylinder or tube based hydrogen," said Proton Director of Sales Bob Melusky. "The H Series is an easy-to-install, low maintenance system that makes 99.999 percent pure hydrogen gas at up to 218 psig (15 bar) without use of a compressor."

The H Series generator builds on the quality and reliability of Proton's HOGEN 20 and 40 hydrogen generators within industrial applications. More than four million cell hours have been logged on Proton's PEM cell stacks in over 350 installed HOGEN units worldwide.

"Proton's H Series hydrogen generators have been designed and proven so that all maintenance actions can be completed in less than 15 minutes and all service or repair requirements take less than one hour," said Proton Director of Applications and Technical Service John Speranza.

The automated, site-ready generator features a load-following system which automatically adjusts hydrogen output to match the amount of hydrogen gas required to meet generators' cooling demand.

The H Series hydrogen generator offers fast, one day installation; full hydrogen production in seconds, and safe operation. The H Series generator's enclosure and ventilation systems are weatherproofed for outdoor installation. Built under Proton's ISO 9001:2000 system, the units are Nationally Recognized Testing Laboratory (NRTL) approved for use within U.S. and Canada, and CE approved for use within the European Union. Seven capacities are available, from 20 SCF/hr to 228 SCF/hr. The H Series generator can be easily upgraded in the field for additional capacity.

For more information on the H Series hydrogen generator, contact Proton Energy Systems at 203.678.2000; fax 203.949.8016; email pes@protonenergy.com.

Proton Energy Systems (http://www.protonenergy.com), a subsidiary of Distributed Energy Systems Corp. (NASDAQ: DESC) designs, develops and manufactures Proton Exchange Membrane, or PEM, electrochemical products that it employs in hydrogen generating devices and in regenerative fuel cell systems that function as power generating and energy storage devices. Proton's HOGEN® and FuelGenT hydrogen generators produce hydrogen from electricity and water in a clean and efficient process using its proprietary PEM technology. Proton is currently manufacturing and delivering HOGEN® hydrogen generators to customers for use in commercial applications. Proton's UNIGEN® regenerative fuel cell systems, which it is developing, will combine Proton's hydrogen generation technology with a fuel cell power generator to create an energy device that is able to produce and store the hydrogen fuel it can later use to generate electricity.

For more information visit the Proton Energy Systems website: http://www.protonenergy.com

CONTACT: Bob Melusky, Proton Energy Systems Director of Sales,203.645.4182 (cell)
Dave Wolff, Vice President, Marketing and Communications 203.678.2349
Jenny Smith, Pita Communications, 860.293.0157 ext. 15

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