HARC Orders DCH's 5 kW Fuel Cell with Natural Gas Reformer.

Business/Energy Editors

THE WOODLANDS, Texas--(BUSINESS WIRE)--July 18, 2001

DCH Technology Inc. (AMEX:DCH), a manufacturer of hydrogen fuel cells and hydrogen-specific sensors, has received an order from the Houston Advanced Research Center (HARC) for a 5kW DCH Enable(TM) fuel cell

The HARC consortium is assessing several stationary proton exchange membrane (PEM) fuel cells as part of their multi-year study. Consortium members are Dana Corporation (NYSE:DCN), Southern Company (NYSE:SO), Texaco Energy Systems Inc. (NYSE:TESI), and Walt Disney Imagineering Research and Development (NYSE:DIS). The DCH system, to be delivered the fourth quarter of this year, is the first fuel cell system with a reformer ordered by HARC.

"The DCH system selection was based on a several criteria," said Bruce Rauhe, technical director of HARC's Fuel Cell Center. "Most significantly, we wanted a unit that was close to commercialization and one that could operate in a stand alone configuration using hydrocarbon fuel. Based on our knowledge of the DCH 3kW fuel cell delivered earlier this year to the Texas Natural Resource Conservation Commission and its preliminary performance results, we are eager to see and demonstrate the progress DCH has made by adding a natural gas reformer to the next generation of their system."

The addition of a natural gas reformer represents a significant competitive advancement for DCH, whose previous delivered systems ran only on hydrogen gas, according to DCH President and CEO John Donohue. He said that the availability of downsized reformer technology is key to applying fuel cells to everyday needs using existing, pre-built fuel supply infrastructures -- such as the natural gas lines found in most residences and commercial buildings. The unit coming to HARC is about the size needed to meet the average power needs of a residence or carry the critical loads in a small business office.

"HARC is an outstanding research organization and this study has a solid team of co-sponsors with whom we are delighted to work," said Donohue. "This is an excellent opportunity to demonstrate the safety, responsiveness and power performance of our fuel cell products. We are confident in the competitive advantages of our technology."

HARC's Fuel Cell Research and Applications Center was created in July of 1998 in response to a growing demand for clean power generation products. HARC is currently involved in a number of demonstration projects that are focusing on promising fuel cell technologies that address the needs of its sponsors.

Patrice Parsons, director of HARC's Fuel Cell Research and Applications Center, said that the consortium is interested in determining how fuel cells work both in large and small-scale stationary applications, from utility plants to single buildings. "The study is examining issues including power quality and reliability, technology transfer and training as well as the development of long-term performance and emissions data," Parsons said. "We are also interested in learning how the use of fuel cells might be applied to new incentive programs, such as tradable pollution credits and greenhouse gas reductions."

Created in 1982, the Houston Advanced Research Center (HARC) is a nonprofit, university-linked research institution with major research interests in energy, the environment and policy studies.

DCH/Enable(TM) (www.dcht.com) has delivered stationary and portable fuel cells to several strategic customers, including the TNRCC; Shell Iceland, as part of their ongoing market assessment study for portable fuel cells; the U.S. Army; and other corporations and organizations that have asked to remain confidential.

Dana Corporation is one of the world's largest suppliers of components, modules and complete systems to global vehicle manufacturers and their related aftermarkets. Founded in 1904 and based in Toledo, Ohio, the company operates some 300 major facilities in 35 countries and employs approximately 75,000 people. The company reported sales of $12.3 billion in 2000. Dana's Internet address is www.dana.com.

Southern Company, based in Atlanta, is a super-regional energy company with more than 32,000 megawatts of electric generating capacity in the Southeast, serving 4 million customers. It is one of the largest producers of electricity in the U.S. The company has a long history of technology innovation in electric power generation.

Texaco Energy Systems Inc. (TESI), a wholly-owned subsidiary of Texaco Inc., was formed in 1999 to develop and commercialize a number of advanced energy technologies that represent new market opportunities, including fuel cells, fuel processing, hydrogen storage, and methods of converting liquid and gaseous hydrocarbons into clean liquid fuels.

Walt Disney Imagineering Research & Development Inc. is a subsidiary of The Walt Disney Company and is chartered to develop and apply technology to the entertainment field.

For additional information, please contact Investor Relations at 661/775-8120 ext. 380 or at invest@dcht.com

Safe Harbor: This news release contains forward-looking statements and information that are based on many assumptions and factors, and are subject to many conditions, including DCH Technology's continuing ability to obtain additional financing, dependence on contracts with suppliers and customers, demand and competitive pricing for DCH Technology's products. Except for the historical information contained in this news release, all forward-looking statements and information are estimates by DCH Technology's management and are subject to various risks, uncertainties and other factors that may be beyond DCH Technology's control and may cause results to differ from management's current expectations, which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.