1. © Ceres Power Limited 2003 Building a Valuable FC Company … Some Lessons Learned 26 Feb 2004

2. © Ceres Power Limited 2003 DISCLAIMER This Communication is being solely issued to and directed at: a) Persons having professional experience in matters relating to investments and persons who are investment professionals as specified in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the “Order”) and; b) Persons certified to be high net worth individuals and sophisticated investors within the meaning of Articles 48 and 50 of the Order respectively. Accordingly, this Communication is exempt from the general restriction on the communication of invitations to enter into investment activity and has not been approved by an authorised person. This Communication has been prepared by the Company. The contents of this Communication have not been independently verified. This Communication does not purport to be comprehensive or to contain all the information that a prospective subscriber may need. Each recipient of this Communication must make its own investigation and assessment of the Company. No representation, warranty or undertaking, express or implied, is or will be made or given and no responsibility or liability is or will be accepted by the Company or by any of its respective directors, officers, employees, agents or advisers, in relation to the accuracy or completeness of this Communication or any other written or oral information made available in connection with the Company, except to the extent as may be expressly provided in any subscription agreement. Any responsibility or liability for any such information is expressly disclaimed. The only representations and warranties to have any legal effect will be those which may be made in a subscription agreement (if and when any is executed) and they will be subject to such limitations and restrictions as may be agreed. The agreement may not contain any representations or warranties in relation to this Communication.

3. © Ceres Power Limited 2003 Some Key Lessons Be in a desirable space and build a strong position Targeting specific investors is key to building value Careful planning is necessary but strategic flexibility is more important Being undercapitalised (in an effort to minimise dilution) destroys value Keeping shareholders well informed is never a waste of valuable management time

4. © Ceres Power Limited 2003 Ceres Exploits a Clear Gap Low T PEM (<120 º C) High T SOFC (>800 º C) Ceres Mid T - SOFC (550 º C) + + …… - -  Fuel flexibility  High efficiency  Excellent durability  Cheap materials  Simple engineering  Fast response AND

5. © Ceres Power Limited 2003 Market orientation and engagement Rapid progress exceeding milestones Growing IP pipeline & trade secrets Purpose built facilities in Crawley Significant industrial and financial experience IP transferred to Ceres Power Ltd Proof of concept demonstration >10 years of basic research Targeted innovation to explore clear gap World class technical team Company History

6. © Ceres Power Limited 2003 Major Investors HNWI

7. © Ceres Power Limited 2003  Core 1990s R&D funded by ~£5M of grants  1 st Round Funding: ~£4M Q4 2001 / Q1 2002  2 nd Round Funding: >£5M Dec 2003 / Feb 2004 + additional soft money leverage  Major 3 rd Round planned by end 2004 of ~ £15-20M - Major private investment - Public offering - Strategic Funding History

8. © Ceres Power Limited 2003 Supporting Slides

9. © Ceres Power Limited 2003 Ceres Team

10. © Ceres Power Limited 2003  Unique metal-supported design  Standard materials & processes used in novel ways  Mechanically robust  Dramatically simpler engineering  Lends itself to low cost mass production  Intermediate temperature operation (550 o C)  Fast start-up / load following  Fuel flexible (e.g. natural gas, LPG, hydrogen)  High efficiency  Usable / high grade heat Ceres Power Solution - Intermediate Temperature SOFC - * A real world solution for the consumer - exploiting a clear gap in the market using existing infrastructure

11. © Ceres Power Limited 2003 Value Chain Positioning Materials suppliers Cell / stack subcontract manufacturers * Ceres to control key component and “design in” to complete system and capture up to half the total value System integrators / BOP suppliers Market channels to end users OEMs Ceres

12. © Ceres Power Limited 2003 Facilities

13. © Ceres Power Limited 2003 Facilities

14. © Ceres Power Limited 2003 Ceres judged to have the UK’s best:  Breakthrough innovation  Commercial potential  CO 2 savings / greenness