1. 1 Fuel Cells By, David Sell Energy Sector

2. 2 Industry Definition –Fuel Cells Hydrogenics Corporation (NASDAQ: HYGS) Quantum Fuel Systems (NASDAQ: QTWW) FuelCell Energy (NASDAQ: FCEL) Ballard Power Systems (NASDAQ: BLDP)  Firms in this industry manufacture and develop solid oxide or molten carbonate fuel cells, which are used as commercial energy utility sources.  These goods are used as an alternative energy source. Often they are used by firms for distributed generation or backup power, helping diminish their reliance on a centralized facility or grid, causing lower environmental impact.

3. 3 Energy Fuel Cell Sector Breakdown Industry Breakdown By Market Cap ($BLN) Stationary Fuel Cells $356.61 M (.027%) Fuel Cells $510.43 M (.038%) Alternative Energy $2.01 Trillion (14.9%) Energy Sector $13.41 Trillion (100%) X$ 18.626 B WOR$ 2.443 B

4. 4 2011 Revenue Breakdown Fuel Cells Contracts Material Products

5. 5 Grid Parity Locations by 2015 Grid Parity

6. 6 Fuel Cell Revenue Generation DesignManufactureSell Install and Service (20.1%) of Revenue(103.9%) of Revenue93.9% of Revenue(13.3%) of Revenue Customer uses Fuel Cell for Distributed Generation or Backup Power Manufacturing outsourcing expected to increase Design / R&D continues to decrease as Rev % Manufacturing outsourcing expected to increase Design / R&D continues to decrease as Rev %

7. 7 Trends Fuel Cell costs Lower Grid Power costs Higher Distributed Generation / Going Green Transition to Commercial Industry

8. 8 Fuel Cells affordable in more Areas Low natural gas prices = lower fuel cell price Grid parity in cities increases every year Electricity prices have decreased once in 11 years Fuel cell technology continues to lower costs Projections Elec CAGR = 3.62% Gas CAGR = 6.02%

9. 9 Distributed Generation Increasing Rapidly Japan, South Korea, and Germany main locations Fuel Cell growth could expand quicker w/ more manufacturers Most manufacturers are subsidies Green is a trend including minimizing grid power Projections FC CAGR = 78.9% NFC CAGR = 58.9% FC CAGR = 78.9% NFC CAGR = 58.9%

10. 10 Corporation Buyouts Show Transition Sign of transition from R&D to Commercial Industry New Synergies emerging showing profitability Companies buyout others for vertical integration Others from strategic partnerships for future profits Ex. BIC buyout of Angstrom Energy -Google and Ebay hold major equity positions in FC comps -All companies discussed have min 2 strategic partnerships Ex. BIC buyout of Angstrom Energy -Google and Ebay hold major equity positions in FC comps -All companies discussed have min 2 strategic partnerships

11. 11 Key Financials Symbol Market Cap (M) % of 52 high Closing PriceP/EEPS EV/EBIT DA Debt/Equ ity Debt/EBIT DA R&D/EBIT DA FCEL172.9147.20.98-4.08-0.24-25.343.22-10.96-1.33 BLDP84.4457.11-2.86-0.35-6.150.79-3.27-1.14 HYGS46.8289.26.2-4.56-1.36-6.461.88-1.17-0.32 QTWW42.825.10.9-0.57-1.59-2.752.04-2.990.00 High172.9189.26.2-0.57-0.24-2.753.22-1.170.00 Low42.825.10.9-4.56-1.59-25.340.79-10.96-1.33 Mean86.742554.652.27-3.02-0.89-10.171.98-4.60-0.70 Median65.6352.150.99-3.47-0.86-6.301.96-3.13-0.73

12. 12 Stationary Fuel Cell Manufacturing Recommendation: Positive Operates with trends Signifying: 1.Costs are decreasing and competition prices increasing 2.Long-time R&D industry transitioning to commercial base Must Combat key risks of: 1.Solar or Wind becoming more widely used 2.Smart-grid may get cheaper eliminating grid- parity