Company Update

Safe Harbor Statement This presentation contains forward-looking statements, including statements regarding the company's plans and expectations regarding the development and commercialization of fuel cell technology. All forward- looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The forward-looking statements speak only as of the date of this presentation. The company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in the company's expectations or any change in events, conditions or circumstances on which any such statements are based.

Overview 66% of the world’s electricity was from fossil fuels in Wind and solar are providing less than 2% of total electricity due to intermittent nature² Environmental needs driving ultra-clean power generation solutions Ability to reduce energy cost and CO2 is dependent on increasing energy efficiency… 1. Energy Information Administration, “International Energy Outlook 2007, p International Energy Agency, Key World Energy Statistics 2007, p. 24. Global demand for electric power expected to grow from 16.4 to 27.1 trillion kWh by 2025¹

Overview DFC products provide commercial, industrial and utility customers: Higher electrical efficiency than competing technologies Near-zero NOX, SOX and lower CO2 emissions Reliable, secure, 24/7 uninterrupted power Competitive economics Cleaner & quieter operation Fuel flexibility Connection to existing electricity and fuel infrastructure Grid independence and more control over power costs San Diego Sheraton, CA FCE is uniquely positioned to capture the commercial, industrial and utilities ultra-clean power generation market

Revenues and Backlog

High Electrical Efficiency is the Key to Customer Value In power generation all fuel ends up as electricity or heat Fuel 12 – 16 cents/kWh 0.5 – 2 cents/kWh Electricity Heat Electricity is worth 6 to 30 times as much as heat High Electrical Efficiency

DFC power plants offer the highest efficiency of any distributed generation technologies High Electrical Efficiency Fuel to Electrical Efficiency 60% 40% 20% 30% 50% 10% Micro- turbines 25 – 30% Small Gas Turbines 25 –35% Natural Gas Engines 30 – 42% DFC-ERG DFC/Turbine 58 – 65% Direct FuelCell (DFC) 47%

Grid Support, RPS 10 MW MW 300 kW Typical Applications Average-Sized Grocery Stores, 300-Bed Hotels 300-Bed Hospitals, Manufacturing, Universities 1000-Bed Hotels, Convention Centers, Wastewater Treatment, Food/Beverage 2.8 MW

Case Study Challenge: –Need for reliable, cost effective, ultra-clean source of power Solution: –1 MW of fuel cells provide 24/7 power and high efficiency –Uses both anaerobic digester gas & natural gas for fuel –Fuel cell waste heat used in anaerobic digester process –Excess electricity sold to the grid Results: –>20% savings in energy costs –Carbon savings is equivalent to removing ~500 cars/year Sierra Nevada Brewing needed a reliable power supply

Case Study Challenge: –Facility with 4,000 inmates in 18 housing units needed 24/7, ultra-clean, reliable power to supplement the intermittent power from its solar array Solution: –1 MW of fuel cells for ultra-clean, 24/7 power –Waste heat used to make hot water Results: –Fuel cells provide 30% of 24/7 electric requirements & 18% of jail’s hot water needs –County of Alameda estimates its energy savings at over $250,000 a year Santa Rita Jail needed ultra-clean, reliable, 24/7 power

Case Study Sharp – one of the world’s largest solar panel makers needed 24/7 power for its “Super Green Factory” Challenge: –Sharp needed reliable, high efficiency, 24/7 power for its new “Super Green” flat screen television factory Solution: –1 MW of fuel cells provide near-zero emissions and high efficiency –Waste heat is fed to an absorption chiller to provide factory air conditioning Results: –Largest fuel cell installation in Japan –CHP application provides energy savings –~3,000 tons of CO2 saved annually –Plant called Sharp’s “Crown Jewel” in full page in NY Times ad

Build Multi-Megawatt and RPS Markets Path to Profitability Strategy Leadership Key Geographies Product Cost Reductions Build On-site Markets

Markets 65 MW installed/backlog – Japan/Korea: 42 MW –California/West Coast: 15 MW –Northeast/Canada: 4 MW – Europe: 2 MW Targeted applications – Grid Support: 39 MW – Renewable/Wastewater: 9 MW – Manufacturing: 6 MW – Hotels: 3 MW – University & Hospitals: 2 MW – Government: 3 MW – DFC-ERG 1 MW Multi-MW and RPS Markets Connecticut Project 150 POSCO Power agreement targets multi-MW potential in South Korea Market Leadership

Build MW and Multi-MW Markets Target Renewable Portfolio Standard (RPS) markets –28 states and D.C. now have RPS mandates –Estimated at 88 GW by 2025 Cost effective due to high efficiency Avoids new generation, transmission and distribution investment and roadblocks Addresses customer demand for RPS solutions Utilities will participate to satisfy RPS requirements and avoid penalties Federal Investment Tax Credit includes utilities for the first time –$3000/kilowatt or 30% of project cost –Extends through 2016 DFC-ERG TM 14.4 MW DFC ® Plant

MW-Class: Connecticut Connecticut has RPS mandate –27% of peak electricity consumption, or about 1,000 MW, from clean generation by 2020 –Funded RPS requires 150 MW near-term 16.2 MW of DFC projects approved in Round 2: –9 MW DFC-ERG with ~60% efficiency –Two DFC 3000 hospital projects 27 MW of DFC projects approved in Round 3 draft: –3 DFC-ERG, 5 DFC3000 and 1 DFC/T –DFC-ERG and DFC/T ~60% efficiency –Final decision due April MW DFC1500 at Pepperidge Farm Bakery in Bloomfield, CT

MW-Class: Asia Asia is adopting distributed generation Kyoto Protocol drives ultra-clean, 24/7 need Fuel cells declared a key economic driver in S. Korea POSCO Power ordered 38.2 MW to date POSCO Power formed a fuel cell marketing alliance with S. Korea’s only electric utility 50 MW Balance of Plant production facility opened in September 2008 POSCO BOP Manufacturing Plant World’s 1 st DFC3000 Installation in Korea

MW-Class: California Large installed base and backlog California is a leader in clean energy deployment –Coal and nuclear power generation not welcome –AB32 strictly regulates greenhouse gases restricting use of turbines and engines –Self-Generation Incentive Program increased to include MW-Class power plants Distributed generation deployment is easier and faster than large central generation power plants 55% of electricity generation in California is from natural gas 1 MW at California State University, Northridge

Wastewater Market Wastewater treatment facilities and food/beverage processors are a growing source of renewable biogas –Using biogas in combustion-based turbines and engines produces pollution –Fuel cells produce ultra-clean power using biogas more efficiently than any other distributed generation solution their size Byproduct heat is used in treatment process increasing efficiency up to 80% ~50% of FuelCell Energy’s California installations and backlog are at wastewater and food/beverage facilities 1 MW DFC1500 at a wastewater treatment facility in southern CA

MW-Class: DFC-ERG DFC-ERG provides heat for natural gas pipeline letdown operations –Heat warms gas to prevent freezing as pressure is let down from trans- continental pipelines to local lines –Excess electricity sold to the grid Improved economics and lower carbon emissions from 60% electrical efficiency First site commissioned in Toronto –Second site slated for Milford, Conn. under Round 2 of Project 150 –Market opportunity extends to gas utilities worldwide Estimated at MW in Toronto, California and the Northeast U.S.

Global Distribution

Our product costs are declining while grid power costs are increasing Cost of Electricity

DFC3000 Cost Savings 1 st gross margin profitable MW-class units will be manufactured starting in July 2009 Captured Cost Reduction from Technology Uprate 20% Value Engineering 54% Supply Chain Management 13% Service Process Improvement 4% Manufacturing Process Improvement 9% Future Cost Reductions to Less Than $2000/kW Value Engineering & Mfg. Process Improvement 21% Power Uprate 29% Volume Related Manufacturing Improvement 14% Volume Related Sourcing 14% Global Sourcing 22%

Competitive Advantages Distributed generation puts power where customers need it Increases power reliability Uses existing transmission & distribution lines Reduces need for central power plants Balances the grid with 24/7 power that enables increased solar and wind generation Meets requirements for low carbon technology Smaller project sizes enable quick permitting, financing, and execution Fuel cell power plants enable broad based distributed generation 600 kW at M&L Commodities

Production Capabilities Production and delivery capabilities meet current demand State-of-the-art manufacturing in Torrington, Conn. 50 MW capacity Production rate of 30 MW/year Strong supply chain in place Expansion plan to achieve 150 MW capacity –Add production capacity to furnace and other operations –Build conditioning facilities local to customer base Torrington, CT Danbury, CT

Summary Product performance expanding markets Customers/applications providing repeatable order flow – Asia, California, CT RPS and South Korean markets creating multi-MW volume Established manufacturing capability to meet current and future demand Cost reduction and volume on path to profitability –New MW-class design in production 4FQ2009 will be first gross margin profitable products Pohang, Korea